Types of Health Plans Offered
Types of Plans Offered
Health plans are classified as either "state-mandated plans" or "consumer choice plans." A state-mandated plan provides certain required minimum features and coverages. A consumer choice plan is any plan developed by a carrier that excludes some state-mandated benefits. Generally, consumer choice plans that do not include all the state-mandated coverages will save you money on your monthly premium.
Although consumer choice plans are sometimes called "standard plans," be careful not to interpret the term to mean that the coverages provided are "standardized." Each carriers consumer choice plan may be different, and a carrier may offer several different consumer choice plans.
Some state-mandated benefits continue to be required for consumer choice plans, including coverages for:
* Phenylketonuria treatment, if prescription drugs are covered.
* Complications of pregnancy.
* Minimum hospital stay after childbirth (federally mandated).
* Reconstruction surgery following a mastectomy (federally mandated).
Consumer choice plans may vary depending on the type of carrier offering the plan. For example, HMO consumer choice plans must pay for 20 outpatient mental health visits per enrollee per year, but that is not a requirement in indemnity plans. In addition, unlike insurance companies, HMO consumer choice plans must include basic health care services, such as inpatient, outpatient, and preventative services. Carriers may offer optional benefits that vary widely from plan to plan.
You do not have the time for all this research and number crunching. But can you really afford to leave it on your "maybe someday" list? As the cost of medical care rises, the risks of not having health insurance are more apparent than ever. Today a single injury or illness --if uninsured-- can leave a family in financial ruin. Moreover, health coverage is a key benefit of employment. You may not be able to hire and keep the best employees without offering it.
Another alternative to group health insurance plans, which can be unaffordable for many small businesses, is to offer individual health insurance options to your employees. By law, an employer is not allowed to contribute to these plans, or that would be treated as group insurance under Texas state law. But you can still help your employees become insured in a good plan and improve their health and well-being and also improve employee retention in the process. If you are a small business owner who would like to offer affordable health insurance plans to your employees, but cannot afford group health insurance, you should consider offering your employees the revolutionary, comprehensive individual health insurance solutions created by Precedent specifically for young, healthy individuals.
Precedent offers affordable, individual health plans with catastrophic coverage, but without a high deductible, and we will offer these plans to your employees at a discount. For more information, visit us at our website, www.precedent.com. We offer a unique and innovative suite of individual health insurance solutions, including highly competitive HSA-qualified plans, and an unparalleled "real time" application and acceptance experience.
