Under the Affordable Care Act (ACA), employers with more than 50 full-time employees must provide them with health insurance benefits. With this, an employer might have to pay the penalty if they don’t offer coverage to at least 95% of their full-time employees or if they don’t meet the minimum requirements for coverage. Aside from these requirements, offering benefits will help your business grow its workforce. This is because many employees value having health insurance and other benefits, so offering them can make your business more attractive to potential hires. It can also help you keep your existing employees happy and reduce turnover. If you’re an employer who is considering offering health insurance benefits, there are a few things you should know:
How It Differs from a Private Health Insurance
When most people think about health insurance, the first thing that comes to mind is private health insurance. However, employer-based health insurance is also a common form of coverage. In many cases, it is the only type of health coverage offered by an employer. When paying for employer-based health insurance as an employer, you will cover a large portion of the premium, and your employee will be responsible for the rest. With private health insurance, your employees are responsible for 100% of the premium. Moreover, with employer-based health insurance, you will have the ability to offer your employees a variety of health insurance and benefits packages. You can also control what you offer employees based on their job roles. For instance, you may want to provide executives with a more comprehensive health insurance plan than what you would offer to entry-level employees.
Common Health Insurance Coverages
Offering different health insurance coverages is an important part of employee benefits. It allows your employees to have options that can fit both their needs and budget. Here are some types of health insurance coverage:
Hospitalization
Employers can offer health insurance benefits that include hospitalization coverage. This coverage can help employees pay for expenses related to a hospital stay, such as room and board, medical care, and surgery. Employees may need hospitalization coverage if they have a serious illness or injury that requires them to be admitted to the hospital. Hospitalization coverage can also help employees recover from surgery or an illness in a more comfortable setting.
Most employers offer hospitalization coverage as part of their health insurance benefits package. However, ensure your employees thoroughly review their plan’s coverage details to ensure they understand what is and is not covered. For example, some plans may only cover a certain number of days in the hospital or only cover care provided by network providers. If they have any questions about the coverage, be prepared to answer them.
Emergency Care
When it comes to emergency care, employer-based health insurance benefits can be a lifesaver. Emergency situations aren’t always predictable, and when they happen, they can be costly. This might include instances where your employee might have had accidents such as a broken bone or if one of their dependents had a seizure. Getting medical assistance in these situations can be very expensive, and your employees will likely need to rely on their health insurance to help cover the cost of care. This will help ensure that they get the treatment they need and help them avoid any major financial burden.
Laboratory and Diagnostic Services
It is important to provide employee benefits that can cover laboratory and diagnostic services so your employees can get the care they need. These tests enable them to better understand their conditions and help their doctors provide them with an accurate diagnosis. By offering this benefit, your employees can take the necessary steps to better care for their health and wellbeing and be more productive in their roles. Likewise, these laboratory and diagnostic services include tests such as blood work, MRIs, and CT scans. With this, it’s essential for your coverage to include services that your employees need. For instance, doctors might refer your employee for imaging scans to better look at their soft tissues. In this case, your employee would need to get an MRI exam to properly diagnose their condition. If your insurance plan doesn’t cover this, your employee may need to pay for the exam out of pocket, which can be costly. Therefore, it’s important to have a plan covering the essential services your employees need. That way, they’ll feel taken care of, and you can rest assured knowing they’re getting the best care possible.
Employers-based health insurance benefits are an important part of the workforce. A comprehensive and affordable plan is essential to attracting and retaining quality employees. Understanding the different plans available allows you to choose the best option for your business and employees.
