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Group Health Insurance. – How This Works
November 1, 2009 | Leave a Comment
Group health insurance is insurance that employers or large organizations offer. This kind of insurance is offered to a large number of people. People looking for individual insurance are not able to participate in these plans.
Most states have laws requiring employers to pay some of the premiums with these plans. These types of plans are often less expensive because of the amount of people involved in the plan. The cost is spread among the entire group.
There are 2 forms of group health insurance, managed care and fee for service. Managed care is broken down even further into 3 categories. The first category and the strictest is known as Health Maintenance Organization or HMO. This plan has a list of certain doctors and providers that can only be used. These providers can refer you out for other services but without your doctors referral, the full cost of your extra services will fall to you.
A second option in the Managed Care form is PPO or Preferred Provider Organization. This plan has more leeway than the HMO. If you use a doctor or service on their list, you will be able to take advantage of incentives and offers such as lower deductibles and co pays.
A POS is the Point of Service plan. This plan allows you to decide which option you would like to use, either the HMO or PPO, when the time comes that you need your plan. You can change which option you would like your plan to be each time you use it.
The second form of group health insurance is Fee for Service. With this option, you are allowed to choose any doctor or provider you want. The cost associated with this plan tends to be higher but there are no co pays. There will be an annual deductible and coinsurance fees applied.
Group health insurance is a type of insurance offered that covers a large group of people. The premiums for these plans are lower than individual plans and have many options to choose from.
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