Group Medical Insurance
There are two basic kinds of group medical insurance plans. First is the kind that you can get in which your employer or organization covers the premiums for all of your health related services. The second kind is one in which your employer or organization only pays a certain amount for your health related services. The second king of group medical insurance is known as a minimum premium plan (MMP). The MMP can be offered to you by your employer and it can be a basic coverage or a major medical plan or a combination of the two. If you are an employer who is purchasing group medical insurance for your employees you can deduct the premiums you pay when your taxes are done. You can also reduce your payroll taxes if you offer medical insurance coverage as a part of a total compensation package to your employees.
Individuals can qualify for group medical insurance either by working for an employer that offers this benefit or through an organization that they are affiliated with. There are all kinds of organizations that offer group medical insurance plans to their members. Not all employers do offer group medical insurance to their employees and as yet they are not required to by law. Any business that has from 2 to 50 employees can get a group medical insurance plan for their employees. These medical plans spread the financial medical risks amongst the members and the policies tend to have lower rates than if an individual was buying the same policy through the same insurance company.
There are two categories of group medical plans, those that are known as fee for service plans and those that are managed care plans which fall under the sub categories of HMOs, PPOs, and POSs. The most expensive plans are the first category which are also known as indemnity plans. With the indemnity plans you are allowed to choose your own doctor and hospital. When you go to the doctor you will be billed and are responsible for paying the bill. After that your group medical insurance plan will reimburse you.
With an HMO, or Health Maintenance Organization plan you can go to any one of a number of network doctors and hospitals that are pre chosen by the insurer. The HMOs are the least expensive group medical insurance plans. The Preferred Provider Organizations (PPOs) are similar to the HMO plans. The PPOs are more popular because you can be seen by out of network provoders for an extra fee. The PPOs cost a little more in monthly premiums than the HMOs. The Point of Service (POS) plans are the most expensive. However, many people prefer the POS plans because they can go to any doctor they want to go to. You don’t have to choose to a plan doctor.
Any small business can offer a group medical insurance plan to its employees. When shopping for group medical plans you will want to get the most amount of coverage for the least expensive premiums. If your main concern is flexibility then you should choose an indemnity plan. If you want the least costly premiums then you should choose one of the HMOs. The PPO plans are considered the best for people who want a flexible, yet managed health care plan. One way to help you make your mind up about which kind of group health insurance plan you need is to go to an insurance comparison website. You can also use the internet to research the best group medical insurance plans that are available. You’ll be able to quickly see the plans compared and get free coverage quotes online as well.