Medical insurance benefits are one of the primary types of benefits that employers buy for their employees. These types of coverage vary by state and sometimes even by an employer’s individual plan. Basically, this type of insurance pays a portion of your medical costs in the event of an emergency or illness. Typically, you will receive coverage for a lower deductible than what you would get with a personal policy, but most policies offer some level of inflation protection. This means that the value of your coverage will increase over time without you paying more each month.
Medical insurance benefits are usually required by law for any employee who wants to be covered by an employer-sponsored plan. If an employee is self-employed, he or she may also be able to benefit from group coverage offered through an employer. However, in most states, employees must remain enrolled in group plans through an organization.
For employees without health insurance benefits, it is possible for an employer to provide coverage through an individual plan. This differs from a group policy, in that the employer maintains the majority (usually 90%) of the premium. Individual medical insurance benefits can usually be purchased at a variety of prices, depending on whether the benefits are purchased as a group or as an individual plan. Many people opt to purchase an individual policy because it allows them greater freedom in selecting a physician.
Some people decide that they do not want to pay for any of their own medical insurance benefits. In these cases, an employee can purchase “pass-through” accounts, which pass the costs along to the employee. Typically, pass-through entities are investment companies, such as TIAACREF. People who contribute to these accounts are not entitled to any of the health insurance premiums.
While some employers provide coverage, many choose not to. If you work for a company that doesn’t offer any type of voluntary benefits package, you may be able to purchase coverage independently. Voluntary benefits packages are advantageous to employees because they allow employees to buy their own coverage if they cannot afford the employer-provided benefits package. If you elect to purchase a self-reimbursement plan, you will be responsible for managing your own benefits. If you should become ill or injured, the company will reimburse you.
Types of Coverage Include: Professional Liability, Vision Insurance, Ambulatory Health, Rental Placard, and Injury. Each of these offers a variety of benefits: Professional Liability protects against negligence; vision insurance provides protection against certain eye diseases; and dental and Ambulatory Health covers your normal teeth and oral health. If you are self-employed, you may also want to consider Voluntary Benefits, which could offer coverage for your business expenses, including advertising, taxes, and business equipment. To learn more about individual plans and voluntary benefits, contact a qualified independent insurance agent.