Group Health Medical Plans Tips

By Jeannie Monette


Group health medical plans are ideal for a company looking to insure its employees. As an employer, the plan you choose and the company you choose it from will have a direct impact on the services received by your employees. You therefore need to carry out your research properly so as to understand the policies that are available and how to choose the best among them all.

Companies have to choose between general and life insurance. Life insurance is not very beneficial as the compensation is usually paid to the next of kin in the event that a life has been lost. General insurance will therefore be more preferable where living members are under consideration.

Future planning is essential for an employer looking to insure his employees. You have to consider the needs this people will have over the next twelve months. Consider needs based on the available age groups within the current work force and also determine what is likely to change.

Different policies are usually provided ranging from reimbursement, floating to cashless policies. Understand what differentiates the three policies that have been made available to you by the insurer. From this information, you will also have a clearer picture on how much is required as monthly premiums. It is important to ask questions on the policies as well.

Premiums have to be paid on whichever plan is settled on. Each plan will come with its own set of monthly premiums. The amount payable in each is influenced by the sum assured. This is the amount of money that each person is eligible for. It is the total amount that can be paid by the insurer in case of an emergency.

Check hospitals that are covered in this particular plan. Such hospitals are referred to as empanelled hospitals and are basically where the personnel will have to go for treatment. Check their reputation, distance from the work place and their areas of specialization.

Premiums are calculated based on a predetermined formula. Even though the formula is one across all the people who have been insured, there are extraneous circumstances that could have the formula changed. Inquire on how much your company has to part with per year and how it will be charged for different services.

Policies come with a very detailed fine print. Take time to read all the clauses included in the group health medical plans. You should also pay special attention to clauses that touch on contract or policy renewal. Understand the terms and conditions that will govern your insurance policy and what may make some employees not to be covered in the coming year.




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