The normal employee contribution percentage for health insurance varies somewhat from company to company. Many employee contributions percentages are 25% to 50%. This gives employees a much-needed subsidy on their health insurance premiums, while providing enough of an incentive for employees to opt for the group insurance plan.
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Joining an employer-sponsored health insurance plan is never obligatory; however, employers must meet certain minimum numbers of enrolled employees in order to get favored rates. Therefore making the employee contribution lower to get more people enrolled is beneficial.
In addition to the employee portion of the health insurance premiums, most employees must also pay a co-insurance amount. This percentage, which is usually around 20% of the cost of eligible medical expenses, helps to keep the annual premiums lower than they would be otherwise and discourages abuse of the system.
Importance of Health Insurance To Employees
Opting to provide health insurance for employees is a big decision. It inevitably costs a company not only their portion of the premiums for each employee, but also a time commitment for their human resources department.
However, the returns are significant, as a great majority of employees value the stability of having health insurance coverage. It means that they are not facing an uncertain financial future because of unforeseen medical expenses that can easily take a major toll on the finances of an individual or family that does not have health insurance.
Employers are also more likely to attract and retain employees when significant benefits such as health insurance are a part of their compensation package. Quality employees and educated employees are more likely to gravitate towards companies that offer such benefits. Therefore it is to the advantage of the company that wants to build a competent and stable workforce to invest in group health insurance.
Options To Help Maximize Benefits of Health Insurance
In order to help employees get the most out of health insurance without an additional cost to the employer or the employee, there are several things employers can do. Opt for a plan that offers a discount card for certain types of out of pocket medical expenses. This will allow individuals to save money on a variety of healthcare expenses and typically does not cost any extra to include in the health insurance plan. It may even allow many employees to opt out of costly “extras” like dental and vision care coverage, while still accessing such care affordably.
Choose to use an Health Savings Account. If you happen to have the option available with your health insurance plan, it will help your employees save money on healthcare costs because money is put aside pre-tax and then that money is used when the employee needs to spend on healthcare.
Opting For Individual Health Insurance
Before blindly accepting the health insurance coverage offered by the company you work for, it is a good idea to check into the price of individual health insurance. Based on your own personal health, for those who are younger and in excellent health, it may be less expensive than group insurance, which spreads the cost of less healthy individuals throughout all members of the group. In addition, group coverage means that you have to accept the type of plan your employer has chosen, while a different type of plan might be more suited to your needs.
Before even getting quotes on individual health insurance, you should take the time to learn about options available with individual health insurance. There are many terms and acronyms that you will encounter such as HMO, PPO, POS, coinsurance, co-payment and deductible. If you understand what each is and the benefits and disadvantages of the different plans, you will be better able to make an educated choice for your health insurance needs.
Get a variety of quotes from different health insurance providers to compare and contrast before you make your decision. Make sure that you are comparing similar plans, because each company really does offer something a little different.
Pay particular attention to limits on the policies, co-insurance percentages and exclusions. You need to thoroughly understand what you are and are not getting before you make your choice. You should also check out the financial stability of the insurance company and its reputation for customer service before taking out a new health insurance policy.
You can start shopping around by getting a quote using a free online quote tool. Such tools ask you a variety of relevant questions and then submit your information only to health insurance companies that serve your areas. In no time, you will get a variety of quotes from those companies.
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