Health Insurance
Companies are able to offer competitive, comprehensive health insurance within a budget for their employees through a co-employment relationship with a PEO. Employee insurance can range from the typical medical, dental and vision insurance to more specific supplemental benefits, such as disability and life insurance.
High Deductible Health Plan (HDHP)
This type of plan has a high deductible and greater up-front costs for medical treatment, while having lower monthly premiums. HDHP Plans are used to protect the employee against large payments due to catastrophic medical conditions.
Point of Service Health Plan (POS)
POS Plans are growing in popularity as they combine the best of HMO and POS plans.
Health Maintenance Organization Plan (HMO)
HMO Plans are great for keeping premiums and out of pocket expenses low while offering comprehensive coverage. However, most require a primary care physician (gatekeeper) and have stringent network policies.
Preferred Provider Organization Health Plan (PPO)
Preferred Provider Organization. PPO plans offer more freedom to select doctors of choice and usually do not require a primary care physician.
Health Savings Account (HSA) Plan
The HSA allows members to allocate pre-tax dollars into a savings account they can also use for out of pocket medical expenses. Usually linked with a POS plan, HSAs are growing in popularity as it allows members to save premium dollars in exchange for higher out of pocket expenses.
Limited-Medical Benefit Plan (LMBP)
Also known as mini-medical plans, Limited Medical Benefit Plans (LMBPs) offer a low cost alternative to the more robust and expensive major medical plans. They have extremely low premiums, but only allow for the most basic of medical access. As a result, employers who offer these plans usually do so because they expect little to no major medical claims for their group.
Indemnity Plan
Under a medical Indemnity Plan, the employee is able to see whatever doctors or specialists they choose. Employees do not need to choose a primary care physician, and can receive care from any hospital they like. They may be required to pay up front for healthcare, and then submit an insurance claim for reimbursement. These plans are usually chosen by employees looking for the greatest amount of freedom in choosing their doctors and hospitals.
