Healthcare Policies: What to Ask When Choosing One for Your Business
Most employees consider health insurance as a “must-have” when considering potential employers. It’s an attractive benefit a company can use to attract and retain talented employees. Other employers go the extra mile by offering competitive employee benefits like reduced absenteeism and tax deductions in the workplace.
Not all health insurance plans, however, are good for your employees or your business. That said, simply providing health benefits isn’t enough to retain talent in your company. The healthcare industry is continually changing, which affects the coverage for healthcare plans.
Below are some guidelines for choosing a healthcare plan that will meet your employees’ needs.
What Type of Health Insurance Should I Offer My Employees?
Small businesses often choose traditional health insurance plans, which is OK. One of the biggest perks of these health plans is the flexibility; it enables employees to visit any hospital and doctor without worrying about the fees. However, managed care plans can be expensive due to deductibles and co-pays employees must settle.
Before you consider healthcare plans, list down your preferences for mental health, dental or maternity coverage. Also, consider if your business can also provide insurance for your employee’s dependents. Many businesses have also implemented wellness programs to promote the overall health of their employees.
Should You Go with Fully-Insured Plans or Self-Funded Plans?
There are two ways businesses can finance their healthcare insurance policies: self-funded or fully insured.
Self-funded insurance plans directly offer benefits to employees. With this insurance plan, your company operates its own health plan, which can be risky. But many businesses choose this plan because it saves money since you don’t have to work with an insurance carrier. Self-funded plans are ideal for larger businesses.
On the other side of the spectrum, traditional fully insured health insurance plans involve the business paying a premium to the insurance carrier. With a fully insured plan, the employees (and their dependents) are responsible for any deductible amounts or co-payments for the services included in the policy.
Use your conceptual skills to discern which option is better for your company.
Do You Need an Insurance Broker?
If you are a small business, you can benefit from the assistance of an insurance broker. They can help you narrow down your options by offering plans from a couple of insurers. So it is essential that you work with a broker who understands your employees’ needs, as well as your business’s financial capabilities.
When choosing a broker, find one who has experience in dealing with businesses like yours. You can ask for recommendations from other businesses. Recommendations are important since some brokers take advantage of their clients, particularly small businesses. One popular insurance broker “scam” involves a broker automating their comparisons of the different insurance deals but has rigged the system to only recommend the policies they work with.
How Can You Evaluate A Policy?
Insurance plans should meet the needs of your employees, as well as meet your company’s budget. But with so many plans available – and each plan looking more helpful than the other – choosing one that hits all the health goals of your team can be tricky.
To properly evaluate a healthcare plan, consider the following factors:
Choose Plans With Convenient Care Options
As mentioned above, not all healthcare policies are created equally. When browsing through potential policies, look for healthcare plans that cover care options, like urgent doctor visits, retail clinics, and telemedicine.
If your employees have special medical needs, consider plans that don’t need specialist referrals, so they can easily access the medical attention they need.
As the employer, you are responsible for helping your employees get the medical insurance coverage they need. Retain and attract top talent by investing in the right healthcare plan.
