Question : What kind of health insurance does a business provide to its employees?
Describe the measures they take in hopes to contain the cost of health insurance.
- asked by Dica
All Answers:
Answer #1
This question is really way to vague to answer. Each company has its own way of determiningwhether they will offer insurance and the planthey offer. There are too many variables to answerthis question with specificity.
- answered by beepbeepwentthecar
Answer #2
the best would be the the employer-employeeinsurance, under the group insurance category
- answered by chincha
Answer #3
by shifting more and more of the cost onto theemployee. high deductible plans now the rage (HSA)in hope that employees will be smarter consumers.Just another futile attempt to preserve thecurrent system, on the path to single payor
- answered by jim06744
Answer #4
It really depends. Most businesses want to keeptheir costs to a minimum, so they look for theleast expensive plan - unless employees are tocontribute to a more costly one.
- answered by zippythejessi
Answer #5
Most large companies offer a group comprehensive(HMO)plan, whereby an insurer charges them adiscounted rate for a bulk number of employees. The smaller biz pays much higher due to the factof being denied a large group discount. Deductibles and Co-pays may be increased to offsetthe insurer's cost and ultimately the employer'scost. The last thing both of them want is anemployee running to the doctor, to get 7 MRI's permonth for a pesky hang nail. Therefore more costsare placed on the employee. They also may pay anemployee a lower salary or wage to account for thecost of insuring that new employee. If anemployee could make $50K per year, the employermight only offer to pay this individual $42Kgross.
- answered by bgsimsrvp
Answer #6
They market out the benefits every year. That'sit. Some business don't provide ANY healthinsurance for employees. Some provide access, butthe employee pays the cost. Most share the costof a group policy with an employee, and onlygovernment workers or NEA members (aka, publicworkers) get full health insurance paid bytaxpayers.
- answered by mbrcatz17
Answer #7
There are several ways to keep the cost down buthere are a couple. Statistics show that only25-30% of insured americans meet their deductiblein a calender year. So businesses could choose aplan with the highest deductible possible to keepthe premium down and then reimburse it's employees(theoretically 30% of them) for incurred medicalexpenses, to whatever dollar amount they wish. This is called an HRA.Secondly, if the group isfairly young (average age less than 40) they canself fund their prescription coverage through athird party. The premiums charged forprescription drugs are a HUGE moneymaker forhealth companies (Blue Cross). If you self fund, the employer only pays for prescriptions that areused by the employees not a monthly premium ratefrom the insurance carrier.In the last 2 yearshere in Michigan, group health rates haveincreased up to 20% each year (differs from groupto group). We use the reimbursement concept withall of our groups (about 50) and the self fundedprescriptions with about 15 to keep that annualincrease to about 6-8%.Hope this helps
- answered by Scott t
Answer #8
Scott has the right idea. Buy plans that havehigh deductibles, but still have office and RXco-pay benefits (first dollar coverage - nodeductible). The employer then sometimes agreesto reimburse part of the employee's deductible ifthey ever use it. That is the HRA - HealthReimbursement Arrangement.I also like to offerdual choice plans. Have the employer sponsor (pay50 to 100% of the employee's premium) for a lowercost plan, but offer a richer plan that if theemployee wants better coverage, they can "puttheir money where their mouth is" and buy aricher, more expensive plan.
- answered by nurse ratchet
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measure and fulfill your financial needs
