18 Sep Going Over the Crucial Uses of a Health Insurance Plan – Keypoints to Keep in Mind
Business uses of health insurance are generally broken down into two broad categories: employer benefit plans and individual benefit plans. Employer benefit plans cover medical expenses for employees and their families; these plans may also offer disability insurance benefits to workers who have become disabled.
Individual benefit plans are issued by an insurer only to a specific group of people, usually one hundred and fifty or more individuals. These plans are not generally available to small businesses. However, some small business owners and sole proprietors may use them to supplement their coverage from the company.
The cost of insurance is tax-deductible to the owner. These plans may cover doctor visits, hospital stays, surgical procedures, emergency care, prescription drugs, hearing aids, chiropractic services, and mental health and disability aids.
They may also cover health counseling, extended medical care, disability income, and vocational rehabilitation, death and dismemberment benefits, and accidental death and dismemberment benefits. Some plans offer coverage for dental costs as well.
Employers and individual policies may also cover preventive care, dental premiums, and vision and dental coverage, depending on the policy. Individual plans offer several coverage options that employers may choose from, including short-term benefit plans, health maintenance organizations, HMOs (Health Maintenance Organizations), amongst others.
Most small businesses are self-employed. Self-employed health insurance is most often purchased directly from the insurance company or through an employment agency. If you purchase coverage directly from your employer, your monthly premiums will probably be higher than if you purchased it through an agency.
However, if you have a good health history and are qualified for group insurance coverage through your employer, you can often save money. Also, if you leave your job before you become fully employed, your former employer usually offers an inexpensive option for providing health insurance.
Health insurance coverage for family members is often recommended when children reach legal age. Children of young adults who are not yet covered under their parents’ policies can end up costing the employer thousands of dollars annually in medical claims. It can also lower the employee’s income to the point that his or her pay is reduced.
Some employers offer disability income as a part of their benefits package. Disability income is coverage that replaces lost wages when an employee is disabled. This type of coverage varies greatly from plan to plan.
Some plans include short-term disability income during a time when the employee is ill or injured, but this type of coverage usually only pays benefits during a short period of time. Other disability income plans pay benefits to the employee on a month-to-month basis.
Nursing home costs can be extremely expensive. However, many insurance companies offer long-term health benefits that cover the health care costs of the employee or his or her family in case of illness or death. Long-term care insurance is usually offered along with home health care services.
These two types of services complement each other and provide coverage for both conditions. If you or a loved one are currently covered by an employer’s health plan, it may be worthwhile to look into purchasing additional long-term or hospital benefits from the same company.
Employers that offer flexible spending accounts are an excellent resource for many people. Flexible spending accounts allow employees to choose the amount they spend on their benefits. For example, some employers will deduct the cost of any out-of-pocket expenses directly from the employee’s check.
This type of coverage is more expensive than traditional benefits, but it allows the employee more control over how much he or she spends on coverage. It is important, however, to understand the limitations of flexible spending account benefits and make sure the employee fully understands any limitations before signing up.
In addition to the multiple uses of health insurance, there are also several different plans that are not considered insurance at all. These plans include travel insurance plans, accident insurance, and even private student insurance.
These plans can be useful when purchasing a car or if someone in your family needs emergency transportation. However, most of these plans are not truly insurance and do not provide coverage that would be helpful in case of an accident or a serious health problem. What are you waiting for? Read the various resources on applyformedicare’s website to broaden your understanding.