What Is Group Medical Insurance?
Unlike individual health insurance, a group medical plan is employer-sponsored health coverage, with costs that are usually shared by the employer and participating employees. Under the umbrella of group medical insurance, there are many different types of coverage. Here are a few of the most common options for businesses in Oregon:
- PPO: a Preferred Provider Organization lets covered parties receive medical care from a list of preferred providers that are determined by the insurance company, which allows claims to be paid out at the highest level. This type of insurance may not cover participants in the program who receive care from outside of the network.
- HMO: a Health Maintenance Organization allows insured parties to join a network of medical providers who are contracted to provide services through the network. In this case, employees will usually select a primary care physician, who can refer them to specialists within the network as needed.
- HSA: a Health Savings Account is similar to a PPO plan but with higher deductibles. Covered parties receive a savings account that’s allocated specifically for medical expenses, which can help them save money, and these savings roll over each year.
Why Do I Need Group Medical Insurance?
Finding the right group medical plan protects your finances just as much as it protects your health. It can also be a great recruitment tool to grow your business. Many prospective employees will prioritize a benefits package that includes enticing and flexible health insurance coverage. A group medical plan can also protect small business owners from personal liability if there are unexpected and disruptive medical expenses.
By participating in a group medical plan, some small businesses may qualify for tax incentives. For example, if you have fewer than 25 employees, your median annual employee wage is less than $50,000, and you cover at least 50% of the cost-sharing for your plans, then you may be eligible for federal credits to reimburse 50% of the cost of your premiums. Our team at Focus1 Insurance Group can help you determine if you are eligible for savings.
Questions to Consider When Selecting a Plan
When selecting the right group plan for your business, you’ll want to consider your personal needs, your business goals, and input from employees to choose a plan that keeps everyone healthy and happy. Here are a few questions you should ask to help you find the right coverage:
- Who will be covered by the plan, and do you want to include your employees’ dependents?
- How much of the cost-sharing do you intend to cover?
- What type of prescription drug coverage do you want for your plan?
- Do you want to offer additional coverage like dental and vision?
At Focus1 Insurance Group, we work with businesses of all sizes to help them compare and choose the best group health insurance plans. We take the time to help you understand the complicated requirements for business owners and find the right fit by working with more than a dozen of the leading insurance providers. Read our testimonials to hear more about our customer-centered approach. When you’re ready, request a free quote online for your business.
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