Group Health Insurance

Group Health Insurance in New Mexico, Utah and Texas

Group health insurance helps employers and employees pay for health care expenses. Businesses that have more than one employee are eligible for purchasing group health insurance.

Group health insurance provides protection against various health risks to people belonging to the same group. Group health insurance offers numerous benefits to employees since the premium is borne by the company.

Group health insurance is sold in the market, but it is widely available for employees of companies that are members of a wide variety of organizations. For example, workers in a hospital may obtain coverage through their employer's insurance policy or demand individual coverage from any insurance company which they prefer to buy.

Groups may include family members or friends of the member. Some companies provide benefits that cover dependents and children younger than 18 years old who do not have dependent status, so these policies are sometimes known as adult dependents and child dependents respectively.

What Does Group Health Insurance Cover?

Group health insurance complies with the statutes of the federal and state government and is formulated according to the constitutional framework of a country while considering the importance and needs of employees. The most significant attribute of group health insurance is free coverage for employees. This type of insurance plan is usually more applicable to large firms, where it is issued to employees based on their prerequisites. The plan enables employees to minimize their expenses for medical care. The coverage is provided to every group participant along with their immediate family and dependents, such as spouse and children.

Compared to the various types of insurance plans, group health insurance comprises most of the marketplace and demand. Large numbers of employees from different sectors are making the best use out of it by meeting the requirements of their employees’ healthcare needs.

Once the organization chooses the type of group health insurance plan for each individual, the employees have the option to either accept or reject the coverage. In some cases, the plan may include variants that allow the insured person to opt for basic coverage or advanced coverage with additional benefits and add-ons. The premium amount is divided between the employees and the organization on the basis of the chosen plan.

Benefits of Group Health insurance

There are many benefits associated with group health insurance for both employers and employees. Here are a few:

Cost Savings

One of the biggest advantages of group health insurance is cost savings for both businesses and employees. It helps employees avail health insurance that they cannot afford on their own for their family and themselves. On the other hand, it helps employers save money by purchasing a group policy from the insurance company.

Positive Work Environment

Happy employees strive to work even harder for the goals of the company. This is a hidden advantage that most people do not see, but when an employer offers health insurance, employees appreciate the company, feel valued, and eventually want to make the company a better workplace for everyone.

Employee Retention

Another huge advantage of having group health insurance is employee retention. While working at an organization, employees consider the benefits offered, including health insurance. So when an organization offers this incentive, employees feel obliged to remain loyal to the firm. This creates a win-win situation for both employers and employees.

Quick Turnaround Time

The turnaround time for group health insurance is fairly quick. The claim settlement process and query addressing are done swiftly for employees without much hassle. Companies go for insurers that provide high-quality and efficient services to their employees.

Characteristics of Group Health Insurance

No-Waiting Period

An employee is eligible to obtain the coverage benefits under health insurance without going through a waiting period. This means that an employee can immediately avail of the expenses even for severe diseases, such as knee-related issues or diabetes.

Pre-illness Coverage

Group health insurance policy also covers any expenses arising out of previous illnesses prior to purchasing the health insurance. In some cases, group health insurance also provides coverage for critical illnesses.

Cashless Hospitalization

Cashless hospitalization at a network hospital is an important feature of group health insurance. This implies that an employee will not have to go through all the paperwork, and the hospital will provide top-class services.

Pre- and Post- hospitalization charge

Pre-hospitalization charges include any expense borne by the employers for tests or exams prior to being hospitalized. In contrast, post-hospitalization charges include any expense borne by the employer after the hospitalization period. Under group health insurance, the policy provides coverage for both pre-and post-hospitalization charges.

Coverage for Dependents

Depending on the type of group health insurance plan, an employee can avail coverage for immediate family members or any other dependents, including spouse, children, and parents.