23 Nov Some Myths Of Group Medical Insurance You Should Know
Group medical insurance is a plan of health insurance that covers a group of people rather than an individual. Group insurance policies are more affordable than individual insurance policies because policyholders don’t usually pay the full premium. They’re usually only responsible for co-payment.
Group medical insurance is becoming an increasingly popular option for many and is being used extensively. This option provides coverage to students, religious organizations, corporate associations, and other professional groups. The medical insurance is widely used by the corporate sector, as it is extremely beneficial for employers and employees alike. Employees covered under such a plan are offered several benefits, such as regular free check-ups, immediate payment of hospital bills after deductible, and the treatment of any medical condition at little or absolutely no cost, depending on the plan.
Some of the myths of group medical insurance
- A business can give out a group medical schemes and have the employees pay all of the monthly cost: Many employers think that a group medical scheme where employees pay all expenses is an example for them showing generosity to their employees. The employers also think that the group insurance rates are cheaper than those of individual medical insurance.
- All plans require us to go through the referral process: Most plans are currently written on an open access basis that requires no referral. Though some plans may still need a referral, it is best to ask your health and group insurance broker to guide you in your decision.
- We can save money by switching carriers now, but we have to wait until our renewal date: Certain issues have to be addressed, but changing carriers is a relatively simple process and can be done at any time with no penalty to the policyholder. There’s no reason to wait for a planned change of carriers to realize savings from a reduction in costs if your business is in a position to do so. Pre-existing conditions are not a concern in most cases.
- There is no cost effective plans out there. They all cost the same so why offer health insurance to my employees: There’s a variety of plans based on certain models that are provided by all companies. Some of these schemes are less expensive but better suited for a younger group that doesn’t require the medical care that an older group would. Look into consumer-directed plans and HSA’s. HSA’s offer low premiums for a high deductible medical schemes and interest bearing savings component for money set aside to pay regular doctor visits.
- The cheapest policy is the best policy: Going for cheap group health insurance may not be the right approach since the low-cost plans may have some restricted features or even to some extent some crucial features.
- A business with one or two employees can have a plan that covers the owners only: Business owners cannot qualify for individual health insurance plan due to health insurance conditions that exist making them only to cover themselves and ever wish their employees to decline coverage they have.
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