Health insurance is still a major topic in the political arena, but while politicians spend their time fighting and arguing over it, those who actually need it are left struggling to understand their rights and their options. A Washington business may need to provide their employees with an insurance policy for various reasons, and if you find that you do then you’ll be looking into group medical insurance policies.
Understanding the specifics of group medical insurance is important to make certain that you get the best level of coverage for your Oroville, WA team while still finding a policy that fits into your budget. Looking at how insurance works and what it can do is important, and just a minute or two of research can help you in a significant way.
Group medical insurance is fairly easy to understand in general terms. Group coverage is a type of policy that is issued to a group of people instead of a single individual. Since numerous people are being insured, the costs and the specifics of the policy will have to be calculated differently than if a single person was purchasing insurance.
In a group health insurance policy, employers pay for the policy and offer it to all eligible participants. In some cases, employees may choose to add extra coverage to their plan and pay for the additional coverage out of their own pocket. Additionally, these types of policies can often be extended to family members and dependents of employees.
The biggest difference in these policies lies in how the overall costs and structure are determined. In a traditional individual insurance policy, factors like age, occupation, lifestyle, and weight will be considered to determine the overall level of risk that the individual brings to the insurance company. The more likely it is that they will have health issues in the future, the higher the risk and thus the higher their insurance costs.
But in a group plan, the risk is spread out over the entire group. There may be one person in the group who is a much higher risk to the insurance company, but there will also likel y be several people who are very healthy and who won’t need to use their policy as frequently. Insurance companies consider numerous factors and spread the overall level of risk across the group, then use that information to determine what kind of overall costs will be associated with the plan.
Under current federal law, all businesses will be required to provide health insurance of some kind to their Oroville, WA employees if they employ more than 50 people. As such, any business with this many employees will have to purchase insurance in order to stay compliant.
However, Washington businesses may also choose to purchase a policy in order to improve their relationship with their team members. Offering a good health in surance policy lets you increase employee morale, boost retention, and attract the best talent to your business. As such, even if it’s not required by law it is still a good idea to consider buying a great policy for your team.
There are two primary types of group medical insurance that a Washington business might want to consider purchasing – self insured or fully insured.
A fully insured policy is the type of traditional group coverage most are familiar with. The employer will choose a policy, offer it to their team, and pay the costs associated with it. Various elements can be added to help customize the policy to some degree.
Self-insured policies are unique in that the business takes over the risk associated with insurance. In these policies, you’ll pay into a trust account that is then used to cover medical costs as they arise. The increased risk to employers means that they’re not a good fit for every Oroville, WA business, but their benefits mean that they can be used to lower monthly costs, customize an insurance plan fully, and give you the best results.
Finding the perfect policy isn’t always easy, and with group health insurance there are so many different variables that it helps to begin by thinking carefully about each of the elements you need included and what goals you have for your insurance coverage. Then, compare your goals, budget, and needs with the different options available. Finding the right policy is important, and the time is well spent when you end up with the perfect policy for your employees – and for your Washington business.