Posted on Fri, Apr 10, 2009
The most important thing most employers want to be able to offer to their employees is an employee benefit plan. Through these plans the employer can rest assured that his employees are well taken care. It also helps retain current employees since they are more likely to stay to keep the great benefits. Many people will take a lower paying job if the medical insurance plan is worth the lower pay.
Having affordable health coverage is one of the first things people ask about when they start a new job and for many, it can be the reason they accept a position with one company over another. Being able to offer comprehensive, and inexpensive, health care for your employees is a must have in the current economic situation.
Options Are The Key
For an employer group health plan to be truly effective and offer the most flexibility and option to your employees, having a number of plans to choose from is wise. Many health organizations will offer different types of medical insurance plans to fit the budget as well as the medical needs of a person or family. They are broken down into three normal categories:
Part-Time or Hourly Employees
This type of plan is created to offer general and limited coverage options for essential services. They may also offer discounts on certain products or procedures. This type of medical insurance is good for non-salaried employees as they generally take less money out of each paycheck while still offering substantial services.
Full Time Employees
This plan is the more traditional or value focused plan for permanent employees who may or may not be on a salaried basis. They offer affordable, more comprehensive plans, which can be specially tailored to the employer’s desires. The benefits packages can be customized as well and flexible spending accounts are offered to help offset unexpected and costly medical procedures.
Low Cost – High Deductible Plans
This plan is designed for employees who are more engaged in their health care needs. They normally feature a lower cost per month with a higher deductible. Normally people who don’t go to the doctor often aside from normal check-ups prefer this type of plan. In this program, health care savings accounts are normally offered as a way to put money away in case an expensive procedure is needed.
There are also other options for employer group health plans, which may include any of the following and normally these options are added at additional expense to the employee:
* Prescriptions – Including pharmacy costs.
* Mental Health – Dealing with psychiatrists and other mental health institutions.
* Dental – This includes normal checks ups to dental surgery. They normally don’t cover much for cosmetic options.
* Vision – Normal checkups, discounts on glasses and contact lenses.
* Alternative Health Care – Such as chiropractic treatments.
Employers normally help offset the cost of health care by contributing a percentage of the cost for each employee so, finding an employer group health plan that is affordable as well as comprehensive is important. Employer health plans can mean the difference between retaining valuable employees and losing them to someone with better benefits.
Posted on Thu, Mar 26, 2009
Among all the groups possible, small business is one of the hardest hit in the current economic situation and the most vulnerable when it comes to finding affordable medical insurance coverage for their employees. Despite the many things we hear every day about the economy and health care reform, many small businesses do want to provide their people with coverage.
When a small business is looking for affordable group health plans there are a few things they know to look for in their prospects:
- Low Premiums – The less they have to pay for it the better.
- Affordable Medical Coverage Options – The more options the better.
- Flexibility – Giving the employees choices between different types of affordable coverage plans to fit their particular needs and budget.
- Consistency – Fees that don’t increase at any time.
One of the biggest complaints from most small businesses is the fear their rates will go up at any time and without any real warning. Because of the continual rising cost of medical treatment, finding consistently affordable health care coverage is becoming harder and harder to manage. Changing plans year to year, to find lower rates, is not an option for many of the owners.
When asked, a large percentage, almost 75%, of small business owners said they are more than willing to help offset the monthly premium costs for their employees. Some employers even stated they would be willing to raise their employee’s payroll by 4 to 7 percent to help with the rising costs of health care coverage.
The Government’s Role
Many small business owners, 75% of them, do support the government taking a bigger role in the reform of the health care system. Citing specific needs for more oversight and regulation of the medical industry as well as the health insurance industry to ensure access to quality and affordable health coverage for everyone.
There is also a call going out for a quality public alternative to private health care coverage. Because small business is so very vital to the survival of the economy, their cries and calls for change are being heard more now then ever before. Small business owners want affordable health care coverage, they are willing to contribute to make it happen and they want it now.
Small Business – The Lifeblood of the Nation
Small business plays a paramount role in the life of the nation’s economy by providing jobs and creating income. A number of factors are combining now to make the survival of these businesses harder and harder each and every day. The grim fact is simple, without some change or options made available to them; the future is bleak for small business owners.
Caught between a rock and a hard place is a good way to sum of the current plight of small businesses. Between the recession and rising health care costs, the small business owner is being squeezed out of existence. This is why it is so important to ensure the availability of affordable group health care plans for all small business owners.
Small businesses deserve affordable health coverage for the hard working employees they employ and themselves because everyone has a right to quality health care.
Posted on Thu, Jan 22, 2009
Most people have no idea what COBRA means. Congress enacted the Consolidated Omnibus Budget Reconciliation Act or COBRA to protect people in the event that they face the loss of health insurance coverage when changing jobs, after the death of the eligible employee, after divorce, or some other life altering event. COBRA is not health insurance. It is simply a law.
Once a person becomes eligible under COBRA, they have 60 days to make a decision about whether they want to continue coverage or not. If they decide they want coverage, COBRA allows them to continue coverage under their former employer group health insurance plan for up to 18 months. Premiums can be as much as three times the amount they paid while employed because the former employee is now responsible for 102% of the premium cost. Most of the time, it is prohibitively expensive. Maybe that’s why only 20% of eligible people elect to continue their health insurance benefits.
Fortunately, there are alternatives that can save people money. Health insurance agents have many different options they can present to people seeking health insurance. They are licensed professionals who are educated and experienced in dealing with healthcare insurance questions on a daily basis.
Here are just a few options that are available:
· Aetna is one of the largest insurance companies in the United States. They offer health insurance coverage in many different states. Aetna has group plans customized for the differing needs of the employers that buy group health insurance through the company. The cost and plans vary significantly depending on individual state laws and business needs. Aetna does business in the private sector as well.
· Blue Cross and Blue Shield are two names that are widely recognized around the United States. They offer health insurance to both companies and individuals. Because they are nonprofit companies, the rates are usually much more competitive than those offered by other companies.
· Short-term health insurance can be a very viable alternative for those who are in between jobs. Often, people are without insurance for only a brief period of time. Once they get a new job, they will be eligible to enroll in the group health care plan offered by their new employer. Short-term health care insurance is sold by many different companies and can be purchased by individuals through an independent health insurance agent. Coverage on these plans is usually very affordable, but does have its limititations.
Obviously, people need to seek the services of a professional licensed health insurance agent that does business in their state. They can provide free quotes and valuable information to help people make the right health care decisions relevant to their own unique situations.
Posted on Thu, Jan 22, 2009
COBRA alternatives are necessary because the program costs more than most people can afford. This law exists to provide continued health coverage after an employee leaves a job. Coverage is only intended to be temporary. When a person is faced with the choice between purchasing private medical insurance and continuing with group health care insurance through COBRA, they must act quickly because they have a 60 day window to enroll in the COBRA plan. COBRA is the acronym that is short for the Consolidated Omnibus Budget Reconciliation Act. This law protects people by allowing the individuals that are eligible to continue their group health care plan for up to 18 months.
Eligible people have a limited time to make their decision about whether to proceed with the plan under COBRA or to instead choose a plan offered through an independent health insurance agent. After 60 days, the person is no longer eligible to use the benefits protected by COBRA.
Here are the advantages of using the COBRA plan:
· Coverage is guaranteed for up to 18 months as long as premiums are paid on time without interruption. There is no guarantee that everyone can find coverage in the private sector. COBRA allows the covered person to continue the policy they had while working for their former employer without interruption. This removes any worry about spending time looking for an alternative to COBRA.
· Group health plans usually have a lot of bells and whistles such as low deductibles, high dollar coverage, and a long list of providers and conditions that are covered. Sometimes it is difficult to find similar choices with private health insurance.
· Pre-existing conditions are often excluded for at least 12 months on private health insurance plans. The length of time the exclusion continues depends entirely on the company. A person covered through their former employer’s group health insurance plan does not have to worry about pre-existing conditions, at least while the coverage continues.
Disadvantages of continuing with the plan through COBRA:
· If a person misses a payment, coverage can be canceled. Once the policy is canceled, it cannot be reinstated. COBRA law requires the insurance company to send notices of nonpayment for cancellation; however, it is easy for a person to miss the notice, leading to an increased likelihood that the policy will be canceled.
· Premiums on a group health care plan are very high in comparison to private plans. The law requires that the covered person pays 100% plus a 2% penalty of all premiums. People often find that their premiums through COBRA are up to three times higher than private health insurance plans.
· COBRA is a temporary fix to a health insurance problem. The very fact that coverage is temporary can be a problem if the covered person finds a job that does not offer healthcare benefits.
Experts recommend that people find an alternative to COBRA as soon as possible to save money and to obtain a policy that is not temporary.
Posted on Wed, Jan 21, 2009
Understanding all of the provisions related to COBRA is daunting even to some professionals and so is information about COBRA alternatives. There are important deadlines that must be met if a person plans on continuing their health insurance after becoming eligible for benefits under COBRA. Most people realize they have more questions after they have had their meeting with the human resources department or received their written notification of COBRA benefits in the mail. It is imperative that people take action to get the answers they need so that they can make an informed decision about whether to continue with their employer-sponsored benefits or to choose a COBRA alternative. Here are some questions that are common:
What is COBRA? Most people don’t even know what COBRA is much less have an understanding about how to sign up for benefits. In short, COBRA is the acronym for a law enacted by Congress in the late 80s. It was set up to protect employees from losing health insurance coverage when there is a death of the sponsoring employee, a divorce, a job separation whether voluntary or involuntary, or a reduction in qualified hours for retaining health insurance coverage. COBRA is not health insurance.
What is a COBRA alternative? Any private health insurance can be an alternative to COBRA. Policies are available for purchase from licensed health insurance agents. Private health insurance policies are contacts made between the person covered and the insurance company, not the employer.
How long do benefits under COBRA provisions last? People can continue their employer-sponsored benefits for up to 18 months. This can be extended for a total coverage of up to 36 months if the person meets eligibility requirements such as disability.
How long do benefits under a COBRA alternative last? As long as premiums are paid, private health insurance policies last until the policy is canceled for nonpayment or the covered person chooses to cancel the policy.
How much will it cost for benefits under COBRA provisions? This is a question that can only be answered by the benefits administrator in the human resources department of the former employer. People who choose to enroll in coverage continuation under COBRA provisions must pay for 100% of all insurance premiums plus a 2% surcharge each month.
How much will a COBRA alternative policy cost? People can get free quotes from a licensed health insurance agent. Premium costs vary by the type of policy and the state where the individual lives. Rates are also affected by health and age.
These are just a few of the many questions people may have about health insurance coverage related to COBRA and COBRA alternatives. People should contact the benefits administrator at their former employer for questions about COBRA. Questions about COBRA alternatives should be directed to a qualified health insurance agent.
Posted on Fri, Jan 16, 2009
There are COBRA alternatives. People often do not understand their options for health insurance coverage. When anyone faces a job loss, divorce, reduction in work hours, or death of a covered sponsoring employee, they may be eligible for extended coverage for up to 18 months under COBRA. COBRA is the Consolidated Omnibus Budget Reconciliation Act adopted by Congress to ensure that eligible people can continue to have access to their employer sponsored health care plan.
Health insurance is complicated. That is why insurance agents must study to pass a complicated exam before they can become licensed to sell it. Most people never read their insurance policies and do not listen or in some cases misunderstand when their employers explain about their rights under COBRA. They make many mistakes that can be very costly:
- People do not ask questions when they do not understand some detail about their rights under COBRA. They may feel embarrassed or intimidated. No matter how stressful it may seem, understanding their rights is a high priority. Everyone should ask as many questions as they need in order to make an informed decision about health insurance.
- People assume their former employer continues to pay for health insurance. Nothing could be further from the truth. Anyone who participates in health insurance under COBRA pays 100% plus a penalty.
- People often think they do not need health insurance. The reasons vary. Younger people think that since they are healthy, health insurance is an unnecessary expense. Others think they will find a job quickly. Not all employers provide health care coverage and these days, new jobs are hard to find. The lesson here is that young people do get sick, and it is a mistake to assume all employers will provide health insurance.
- People do not seek the help of an insurance professional. Paying for benefits under COBRA is expensive. Insurance agents have a number of options to fit the differing needs of individuals and families. They can do a health insurance comparison that will contrast the benefits and costs to the person.
- People think everyone qualifies for benefits under COBRA. That is not the case. The law specifies the eligibilities. If an employer drops health care benefits, employees are not entitled to any protection under COBRA. This mistake goes back to assumptions. People should never make assumptions, but instead they should ask questions to find out if they are qualified.
- Many believe that COBRA is medical insurance. It is not. COBRA is an acronym that is short for the Consolidated Omnibus Budget Reconciliation Act. It is a law enacted to help people continue employer sponsored health insurance for a short period of time.
Health insurance agents work on behalf of the person buying insurance. They can offer consultations that help people understand all of their options in relation to health care coverage. They often have access to Blue Cross/Blue Shield, Aetna health insurance plans, and plans offered by other companies.
Posted on Fri, Dec 05, 2008
BestHealthcareRates.com reports with unemployment expected to rise to 9% by next year many families will, most likely, be forced to decide whether to take their employer’s COBRA health insurance or look at alternatives provided in the marketplace. Losing employer health insurance is a challenge at any time, but during a recession the choices seem harder for families trying to budget. COBRA alternatives exist, but consumers are not always aware of the options, often at a considerable cost difference from the employer based plans.
As individuals begin the long search of finding a new job or alternative employment they often decide to opt out of their employer based COBRA plans because the cost is too steep. These newly unemployed are now newly uninsured, but it doesn’t have to be like that – they can get the help they need with cost cutting COBRA alternatives. COBRA health coverage is required to be offered by the law, to provide coverage to your family in case of layoffs, but the costs are often out of reach for a family that is currently undergoing a loss of income.
Tom Carolan, Director of Client Services with BestHealthcareRates.com, states, “COBRA coverage is required by employers but it often isn’t the best financial decision that a family faced with unemployment should consider.” His company offers a comprehensive look at the alternatives to COBRA coverage that individuals and families can research for their continued health care needs.
Carolan continues, “Those aged 20-35 who are laid off often think that they don’t need health coverage because they are relatively healthy. This group in particular should consider that with the rate of unemployment and health care costs rising, purchasing a lower cost alternative to the COBRA plan can continue to maintain their health and alleviate any further financial burden that a health crisis would create.”
Consider that COBRA is an expensive option because although employers are required to provide it, they do not pay for any portion of the monthly premium as they did when you were employed. Unfortunately, you might be required to pay up to 102% of the monthly premium in order to continue coverage under your employer’s COBRA plan. If you have a disability and continue your coverage by extending your COBRA you could be required to pay up to 150% of the plan. These costs are often a burden that a family cannot afford to budget the necessary payments to keep their coverage. If you have pre-existing health problems a COBRA plan may be your only option, but you might consider an alternative health plan for your spouse or children until you have retained employment to cut your health care costs.
Looking into alternative health insurance options is liberating for many family’s. It allows them to see the options in health care that their employer is not required to represent. Finding a health coverage plan that meets your families needs and budget can be accomplished with just a little research into what is available online.
During this time of economic fragility being smart about your health care coverage decisions will become a saving grace. Having good information is critical and knowing what is available for your health care needs will provide needed peace of mind. Even if you are relatively healthy it is a wise choice to get smart about health care coverage for yourself or your family – knowing your alternative choices to COBRA benefits offered by your employers will save you money until you have the secured employment and employee based health coverage in the future.