Understanding the Different Types of Group Health Insurance

Posted on: July 18, 2019 by Javier iSure

Health insurance is a major benefit that employees look for at every company, no matter the size or industry. Health insurance, including group health insurance, is becoming a major negotiation talking point for potential employees considering taking a position at a company. But not all plans work the same as several types of group coverage face the market today.

As the different plans available have certain advantages and disadvantages that go along with them, it’s important to understand which plans are right for your business and your employees. Here are some common types of group health insurance options that small businesses have.

Fully-Insured Plan

Fully-insured plans are more traditional when it comes to group health insurance. These plans involve the insurance company taking on the liabilities included with healthcare costs and charging a business an annual premium for the group health insurance policy’s benefits. These benefits are partially paid for by the employee who uses the insurance.

High-Deductible Health Plan

Also known as an HDHP/SO, this group health insurance plan is based around lower premiums and higher deductibles. Members who use this plan will have to shell out more money out of pocket before the plan begins to pay for itself. Monthly premiums may be lower, but they will cost the member more over time.

HDHP/SO plans can be matched up with savings options like a health savings account. These accounts allow members to contribute untaxed money to the account and it can be used to pay for health costs, including co-pays and medical services.

Health Maintenance Organization (HMO)

An HMO is a group coverage setup in which members pay for specific health services through monthly premiums. HMO’s provide access to a network of healthcare providers and locations. However, services will be limited to those who fall under a specific network. This makes HMO’s more affordable than other kinds of group health insurance plans.

Preferred Provider Organization (PPO)

PPO plans offer more flexibility among group health insurance plans and they also feature a network of healthcare providers. Members have the option to go to doctors or locations without having to pay the entire bill and instead, these visits will result in higher co-pays as well as additional service costs.

About iSure Insurance Brokers

After serving leaders in the Greater Miami market for more than three decades, iSure Insurance Brokers has become the provider of choice for discerning commercial clients and individuals alike. Because no two insurance programs are or should be alike, you can be sure that iSure will craft a comprehensive approach to protection that is as unique as you are. We welcome the opportunity to protect what you have worked so hard to build. Please contact us at (305) 223-2533 to learn more about what we can offer you.

Posted in: Blog Employee Benefits Group Health