The Anatomy of a Great health insurance options
Health insurance pay for medical services and sometimes prescription drugs. Health insurance plans are an important part of employee benefits packages, which increasingly include financial wellness options, travel assistance programs, and other workplace perks. Medical coverage and health plans differ based on group size, plan type, and benefits design.
Defined contribution plans are popular with employees
There are two main types of health insurance options: the traditional health insurance plan, which provides a pre-set level of coverage for you or your family, and a defined contribution plan, which allows employees to choose their level of coverage.
Setting a fixed amount for coverage ensures that employees are not over-or under-insured. It also gives employers peace of mind. Defined contribution plans have become more popular in recent years and not just among small businesses. Defined contribution plans make up more than 80% of all insurance enrolments in the country.
What Are Defined Contribution Plans? A defined contribution plan is a type of health insurance plan that lets an employee choose the level of coverage they want through their employer. If a company offers an HDHP (high deductible health plan), the employer could contribute part or all of the employee’s premium costs on a pre-tax basis. The amount contributed can be as much as 100% or as little as 0%.
The Best Defined Contribution Plans Work Best for Large Companies According to Forbes, defined contribution health plans work best for large companies. The reason is that one size does not fit all when it comes to health insurance, and it’s difficult for small companies to offer diversified benefits packages.
You can get health insurance on the Marketplace
If you don’t have health insurance options, you may be able to get it through the Health Insurance Marketplace. The Marketplace can help you find health insurance that fits your budget and meets a minimum set of coverage standards.
Trying to figure out how to pay for your health care? The Health Insurance Marketplace can also help with that. It offers tax credits to people who qualify based on income, and savings on monthly premiums for certain individuals and families. You can apply for these savings if your income is between 100% and 400% of the federal poverty level, which is $11,490 – $46,680 for an individual in 2017, depending on the state where you live. If you’re over the age of 45 or are blind or disabled, even lower incomes qualify you for savings.
