Group Health Insurance Plans – Factors That You Should Consider

When it comes to selecting a great group health insurance plan for your company, it can be challenging to know where to start. Meeting the requirements put in place by the Affordable Care Act (ACA) and selecting a plan that meets the specific needs of your employees. Choosing the right plan for your company can be far more complex than just scrolling through a list of options and picking the one that best fits within your budget.

However, buying a group health insurance plan might be tricky but it doesn’t mean that it’s impossible. Read on to learn all about what helpful tips and tricks to consider when choosing group health insurance.

Don’t Forget About HSA-Qualified Plans

The main mistake that group health insurance buyers typically make is passing up on the chance to buy a health savings account (HSA)-qualified high-deductible health plan (HDHP). So what exactly makes these plans so desirable? First, let’s define what HSA and HDHP are to better understand why they make for a great group health insurance plan.

Health Savings Account (HSA)

An HSA is an account that can be used to pay for health care expenses now or in the future. It’s individually owned and tax-advantaged, similar to a retirement account. Its funds can be invested into mutual funds or kept as cash. Anyone can contribute to an HSA, including the account holder or employee and their employer.

There are three main tax advantages to HSAs:

  1. Earnings to an HSA made through investments or interest are tax-free.
  2. Money used from an HSA to pay for qualifying medical expenses is tax-free.
  3. If contributions made via payroll deduction are done through an employer-sponsored cafeteria plan, they are technically pre-tax contributions. Which can reduce an employee’s taxable income.

HSAs are not like flexible spending accounts (FSAs). Whose contributions must be used within a year or they will be lost. Instead, any money in an HSA will stay in the HSA until it’s used. Even if the employee is terminated. An employee must be enrolled in a qualified HDHP in order to open an HSA.

High-Deductible Health Plan (HDHP)

Many first-time group health insurance buyers typically buy a low-deductible plan to minimize their employees’ out-of-pocket costs. Only to switch to a high-deductible health plan after a few years because they better suit their needs. HDHPs feature lower premiums and higher out-of-pocket maximums and deductibles than other plans. But there are several reasons why they are ideal for a group insurance plan. In particular, they cover preventive care and catastrophic claims. HDHPs are great choices for workplaces with younger workers who don’t frequently access healthcare.

Indeed, combining an HDHP with an HSA can help employees access the care they need. Also while building a nest egg for future medical use in their HSA. And also while helping you save money on premiums. It’s a win-win that can help you save money. While keeping your employees healthy, happy, and capable of accessing the care they need.

Business owners discussing their plans about group health insurance for their company.

Everything Else to Know When Buying Group Health Insurance

Buying group insurance is far from straightforward, but arming yourself with the facts is a great way to limit confusion and help yourself make the right decision for you and your company. Here are some facts to keep in mind when shopping for a great group health insurance plan.

You Need More Data to Get a Quote

In the past, group insurance buyers could get a quote by inputting the estimated ages of their employees. Now, because of the Affordable Care Act, you’ll need more detailed data to get an accurate quote. Prepare yourself by having the dates of birth of all your employees, their spouses, and their dependents handy. This is to generate an accurate quote for an ACA-compliant group insurance plan quickly and easily.

Examine What Doctors and Drugs are In-Network

Many hospitals and doctors are being excluded by plans trying to save money by reducing the size of their networks. It’s worth taking a look to see which medical professionals are being left out in the cold. If you’re considering a plan in which many of your employees’ favorite doctors are being classified as “out-of-network”, it may be worth considering a different plan to help your employees stay happy and healthy by keeping their doctors.

Additionally, prescription drugs now come with a separate prescription drug deductible. As well as the fact that prescriptions are now being classified into tiers based on their costs. If you’re noticing that a lot of brand-name drugs without generic equivalents on higher tiers represent drugs that your employees might need, it might be a good idea to instead consider a plan that can better help your workers more easily afford the medication they need.

Closely Consider Pediatric Dental and Vision Coverage

The ACA requires group insurance plans to include pediatric vision and dental coverage. However, the required degree of coverage is actually relatively limited. And some plans may not be adequate for your employees’ needs. Take a closer look at the pediatric plans included in your prospective group insurance. Then determine which one might be right for both your workforce and your budget.

Final Word

Selecting the perfect group insurance plan for your workplace can feel overwhelming. Pioneer can help you make the difficult decisions that can help you land the perfect plan for your employees. All while cutting costs on your end. We take the time to explore all the options that are available for your employee benefits plans. Then, we bring you a detailed proposal generated from input provided by multiple providers. And recommend what we think might work best for you and your company.

Not only is our service free, but we can help you save as much as 30% on what you’re currently paying. Interested in learning more? Contact us today to see how Pioneer can help you save money, boost business, and improve the quality of your workplace.

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