Everyone has different health needs. So, when looking for health benefits, we like choices. If your company provides group plans, you might consider offering more than one. Why do you need to take this step? Is it a benefit to the company?
Generally, offering health plan options creates more choice and satisfaction among your employees. It can, indeed, prove beneficial to the company as well.
The Benefits of Offering More than One Plan
Businesses that offer health insurance often do so through group health plans. The company pays a portion of the premium and sometimes other supplementary costs. The employee also pays their part of the plan’s costs as well. By participating in group plans, employees (along with their dependents) often can afford health insurance at significantly lower costs compared to private plans. They also get the added benefit of having support during times of illness.
Even so, all employees have different health needs. A young person with diabetes will face different costs than a family of four who all remain healthy. The way they need to use their plans might differ. Therefore, employees might find a one-size-fits-all benefits package not conducive to their needs. The costs might outweigh the benefits, so to speak.
To improve services to all employees, you might decide to offer a few different plan options. This will give employees choices to choose the plans that work for them. For example, someone with many health needs might find a low-deductible plan with more coverage to their liking. However, someone with fewer needs might want a plan that doesn’t offer as much coverage, but does include essentials. Of course, the premiums individuals pay for these plans will vary. However, the choice remains theirs.
Even if you decide to offer only one plan, you might still offer options within this coverage. For example, you might provide the option to tack dental or vision insurance onto their plans. Some businesses even go so far to support the full cost of these extra services.
Understanding the Risk of Adding More Plans
While often, you might be able to offer multiple health plans, it all comes down to cost management. Remember, your business will support a significant part of the costs of these plans. So, you’ll need to be sure you meet the internal costs of offering coverage. If two plans don’t work, for example, you might find adding supplementary options more to your liking.
It’s up to your business, therefore, to talk to your benefits provider. Agents can help you determine the appropriate approach to group health coverage.
Also Read: Understanding Your Options for Health Insurance