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Group Health Insurance Rates Group health insurance rates are determined in part by features that expose employees:
Premium rates charged for group health insurance go down as the exposure to out-of-pocket medical costs for employees goes up. How does an employer:
No group feels the pinch more than growing families and the employers who help fund their insurance coverage. Group health rates are driven by employee census, and a group with a large number of women of child bearing age pay the highest rates, and often choose the plan with the biggest holes as a result.
Group Health Insurance Rates: Protecting Employees
Group health insurance rates with a higher deductible and co-insurance arrangement will have a lower premium cost. All goes well as long as your employees stay healthy: away from doctors and hospitals.
But we know that employees do get sick or hurt. Group health insurance plans with lower premium rates and big out of pocket employee expenses leave employees in a bind when they encounter a medical event. A low cost plan may end up costing an employer more in employee retention and lost productivity than it saves in premium. Many employers elect a one-size-fits-all medical plan. Employers pick the coverage. Employees live with the consequences. Voluntary employee benefits allow employers to expand coverage, keep costs in check, and allow employees greater choice to protect their families. Reduce Group Health Insurance Rates & Help EmployeesFlexible Spending Accounts reduce the out of pocket costs for unreimbursed medical expenses - making large deductible plans more palatable to employees. A flexible spending account may reduce predictable expenses subject to deductibles by 1/3 or more. Supplemental maternity insurance pays cash benefits directly to employees for normal delivery, complications, premature birth, accidents and illnesses, helping employees cope with unexpected medical events. Group health insurance plans with big holes and low premium costs pose less employee risk when coupled with supplemental programs that fill the holes. Employees are in charge of their health insurance configuration. Those who are healthy and have a high risk tolerance can accept the group plan as is: holes and all. While those looking for greater security can fill holes with supplemental coverage. Everyone wins! |
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