If you’re investigating health insurance plans for your employees, it won’t take you long to discover that there are a dizzying number of choices out there. And there’s even more information to digest after the passage of the Affordable Care Act. What follows is an overview of some of the options available to help you begin your exploration of health insurance plans.
Fee for Service plans offer the widest network of doctors and hospitals compared to other types of plans, which limit access to some providers. They’re also generally the most expensive in terms of premiums, copayments, and coinsurance.
Managed Care is a way for health insurers to help control costs by managing the healthcare services people use. Today, nearly all health insurance plans include a managed care component to control costs. One such component is pre-authorization: Members may need to receive approval from the insurance company before being admitted to a hospital or having a major procedure.
Over the years, managed care has given birth to several types of health plans, all in an effort to balance quality care with lower costs. Here are a few of the prevalent ones you’ll encounter:
High-Deductible Health Plans (HDHPs) typically feature lower premiums and higher deductibles than traditional insurance plans. Their big advantage, though, is that members can set up a Health Savings Account (HSA) that allows them to contribute up to $3,450 for individual coverage plans and up to $6,900 for family coverage plans to cover medical expenses.
Today’s health insurance environment for small businesses is a complex equation. To sift through the options, and to help ensure they’re making the right decision, many small businesses turn to experts for help and outsource the selection, management, and administration of their health insurance plan.