Employers, when they hire their employees, offer them insurance. This type of insurance is group health insurance. Group health insurance is offered by employers and large organizations to their members.
Most states have laws requiring employers to pay some of the premiums with these plans. These types of plans are often less expensive because of the amount of people involved in the plan. The cost is spread among the entire group.
Group health insurance comes in 2 different forms: managed form and fee for service. Managed care has 3 subcategories: HMO, PPO, and POS. A HMO, or Health Maintenance Organization, has a list of physicians and primary care providers that are covered. The primary care physicians will refer out services as needed. If there is no referral, the cost of the outside care will be paid out of pocket.
A second option in the Managed Care form is PPO or Preferred Provider Organization. This plan has more leeway than the HMO. If you use a doctor or service on their list, you will be able to take advantage of incentives and offers such as lower deductibles and co pays.
A POS is the Point of Service plan. This plan allows you to decide which option you would like to use, either the HMO or PPO, when the time comes that you need your plan. You can change which option you would like your plan to be each time you use it.
The second type of group health insurance is called Fee for Service. This type of insurance is also called indemnity or traditional plan. With this plan, you have the option to choose any doctor or provider of your choosing. The fees with this plan are usually higher but there are no co pays. There will be a yearly fee and coinsurance that will need to be paid for.
Group health insurance is a type of insurance that is offered by an employer or an organization. These are offered to large groups of people and the cost is spread around the entire group. The plans have a few options so do a little digging to know which one will be best for you.
Learn more about Health Insurance. Stop by Samantha Malone’s site where you can find out all about group health insurance and what it can do for you and your group.
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