Selecting the right health insurance plan for employees is an integral part of ensuring business prosperity. Employee wellness leads to good morale, which brings out their best work. Here are some things to keep in mind when considering which employee insurance plan is right for your company.
Be Aware of Your Options
It is imperative that you know the difference between the various types of health insurance plans. For instance, in a defined benefit plan, you present a group plan to all your employees, and when employees need medical care, they go to providers within the plan’s network. In a defined contribution plan, you give your employees an allocation, and they select options that fit their individual circumstances. Going through professional employer organizations allows you to offer the same types of plans that big companies have but on a smaller scale.
Know the Terminology
Be aware of the terminology that defines health insurance plans. Health maintenance organizations, or HMOs, lower healthcare costs but limit provider options. Preferred provider organizations, or PPOs, usually have higher premiums and higher costs, but employees can choose providers that are not part of the network. In exclusive provider organizations, or EPOs, employees must see providers inside the network, but they don’t need specific referrals when they need appointments with specialists.
Focus on Wellness
Wellness programs are an important part of viable health insurance plans. It’s important to be sure employees are adequately covered when they are injured or sick, but it’s equally important to have preventative measures in place to keep them healthy and on the job. Wellness programs lower healthcare costs and improve morale. Consider offering bonuses or health insurance discounts to employees who are actively participating in wellness activities.
