How to Choose the Right Insurance Plan for Your Employees
As an employer, choosing a healthcare plan for your employees is an important decision. According to The United States Census Bureau, 7.9% of Americans didn't have insurance in 2022, thus leading to staggering healthcare costs in case of a medical emergency. There are several factors that go into the decision-making process. You want the best for your workers, but you also need affordable solutions that work with your bigger financial picture as well. This is why it's vital that employers take time to research and learn about best practices for choosing insurance plans. Let's look at a few factors that will play into this choice.
1. Consider Your Financial Input
Fully funded plans are plans that the employer buys from the health insurance company. This option limits the risks to the company and offers the most cost predictability. A self-funded plan is one that the company creates and operates itself. There may be assistance from a third-party administrator. There are some greater financial risks associated with this option. Costs are also less predictable. Larger organizations often choose this option, though, because it can save money in the long run.
2. Remember Network Size and Structure
The network size of the plan you choose will impact the options available to your employees. It can also affect how much they wind up paying out-of-pocket. Plans that offer a narrow network of preferred providers will allow your employees to get more coverage and pay less when they use these providers. Choosing out-of-network providers is an option, but employees will pay more.
3. Look at Additional Options
HSAs, FSAs, and HRAs are varying ways for employees to put aside money for medical expenses. These options provide tax advantages as money can be deposited in before taxes. HSAs are used alongside high deductible plans so that funds can be set aside to cover deductibles and this money can be rolled over from year to year.
In order to make the best possible choice for insurance coverage for your employees, it's often necessary to sit down with an insurance representative. These professionals can explain the finer details of each type of plan and help you pick the one that will work best for your needs. Understanding the different types of insurance plans that are available is crucial to making a good choice for your company. If you need to choose an insurance plan, please contact Benefits Analysis Corporation today. We're here for your insurance needs.