One of the hardest things to do as human beings is admitting when we don’t know something. Many people have too much pride or are afraid they might not be perceived to have a higher intellect, if they don’t always know the answer. I can’t tell you how many times I’ve had an employer or office manager tell me they understand the group medical quotes that I send over. Group health insurance quotes can be very confusing, especially if you're not familiar with it. 8 out of 10 times, they don't understand the quotes.
For instance, such simple term such as 'deductible' tends to be one of the most confusing terms when it comes to group medical insurance. Most employers and employees are afraid to use their coverage because they believe their plan won’t cover any services or procedures until they reach their deductible. This can be true, but it can also be false. One of the most important things you should do before starting your group medical plan is make sure to understand how it works.
Understanding that coinsurance is a stated percentage, a copayment is a stated amount, and whether or not your copayment or coinsurance is followed by after deductible, are all key elements to the coverage you're offering. You shouldn’t be afraid to use your group medical insurance. If you are, speak to your agent and make sure you truly understand your plan.
Did you know that the Affordable Care Act allowed employees/individuals with preexisting conditions to be guaranteed coverage and it's free from having to pay an extra premium for fully funded insurance plans?I can’t tell you how many people I speak with believe that their ailments won’t be covered. One thing to keep in mind is the difference between fully funded insurance, which is ACA compliant and self-funded insurance, which is not. Self-funded insurance can charge an extra premium for preexisting conditions.
One of the biggest misunderstandings that I get when it comes to group medical insurance is the cost. When an employer or office manager see’s the premium per month, they either think the amount for the whole group is the cost for one employee or they think the price is too high, not knowing they only have to contribute 50% for the lowest cost employee or plan. Another one of the biggest mistakes when it comes to the premiums is looking at group medical insurance as a bill. It’s a benefit that can not only benefit your employees but can also help the employer when tax time comes around. You should always check with your CPA or accountant to see how offering the benefits can benefit your company.
Group medical insurance can be very confusing. Sometimes as humans we’re embarrassed to admit that we don’t know something. Don’t be. You could be hurting yourself or your employees. Do yourself a favor and work with an agent that knows what they’re talking about.