Everything You Need To Know About Group Health Insurance Plans

In today’s job market, it can be difficult to find long-term security with one company. The average employee tenure is now just 1.6 years, and the American workforce is now made up of an astounding 74% contingent workers (contractors, freelancers, temp workers, etc.). Because of this dynamic environment, many employees find themselves switching jobs frequently or taking on new contract work. This can leave many people feeling anxious about their future and what this new way of working means for their overall financial stability. In a perfect world, every employee would have access to a company-sponsored benefits plan that covered them for everything they need in order to thrive—from healthcare and dental coverage to 401K retirement savings options and more. Unfortunately, we don’t live in a perfect world and not all companies offer such robust benefits packages. So as you search for your next career move, it’s important to understand what group health insurance plans are available to you as an employee so that you can make informed decisions about your future.


Why Employees Might Receive a Group Health Plan


The best small group health insurance plans are often the most suitable option for employees who may not have access to other types of health insurance coverage. For example, suppose you’re a freelancer or work on a contract-to-contract basis. In that case, it may be difficult to purchase individual health insurance due to your changing or uncertain employment situation. While you may be able to take advantage of a short-term health insurance plan in the interim, you’ll likely want to look into long-term options once your contract-work ends—at which point, you can enroll in your employer’s business group health plan.

Types of Group Health Insurance Plans


Employer-sponsored group health insurance plans may use a variety of different coverage options. Some of these plans are managed care plans, while others are indemnity plans. Let’s look at what these terms mean and what sort of coverage you might receive with each type of plan. Managed Care Plans – A managed care plan is a type of group health insurance plan that works like a health maintenance organization (HMO). You will have a primary care physician with whom you have a long-term relationship. You will see your primary care physician for routine care, and may be referred to specialists if your primary care provider feels that you should have a different type of specialist. Indemnity Plans – An indemnity plan is a type of group health insurance plan that pays you a lump-sum payment for each covered medical service. You then have the responsibility to pay for the medical service out of your own pocket.


Reasons why Employees Might Not Receive a Group Plan


There are a few reasons why some employees may not receive a group health insurance plan. Some of the more common ones include: – Employer’s Health Coverage Policy – Some employers may choose to only offer health insurance to employees who work a certain number of hours per week. Others may only offer health insurance to full-time employees. – Employer’s Health Coverage Costs – Some employers may not be able to offer robust health insurance plans due to high costs or other factors (e.g., small company size, company’s industry, etc.). – Employment in Certain Industries – Certain industries are exempted from certain health insurance requirements. For example, agriculture and housekeeping industries are generally not required to provide health insurance. Other industries, like transportation and warehousing, may be exempt if the employer is not involved in interstate commerce.


Bottom Line


In a perfect world, every employee would have access to a robust, employer-sponsored group health insurance plan that covers the costs associated with necessary medical services. Unfortunately, we don’t live in a perfect world and not every employer offers employees robust health insurance benefits. It’s important to understand how group health insurance works, as well as what types of plans your potential employers or contracting clients offer so that you can make the best decision for your future.

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