The type of insurance coverage is practically one of the major elements that employees consider when staying in a certain company. Therefore, it is crucial that one with the best coverage be offered since, not only does it improve retention percentage, but attracts new talents as well.
Insurance companies usually recommend affordable plans. Thus, they opt to offer a group health insurance wherein more than half of the American employee population is covered under. In this type of policy, employers are the ones to acquire and shoulder 50% or more of the required total monthly contribution. And since it is more about getting coverage due to a common cause than a necessity, it would still cost less than purchasing individual plans. This makes it a win-win situation for both parties. This is also why it is currently considered as the most popular benefit a company can offer.
A “POP (Premium Only Plan) allows members to make their share of contribution on a pre-tax basis. This is the type of plan most employees in the U.S is covered under. They are not taxed for company contribution as well which makes this heavily subsidized in terms of taxation.
Are All Policies applicable to all types of companies?
Based on laws that govern in a particular state, health insurance policies may actually vary. Moreover, the comprehensive health care reform law enacted in March 2010 (Affordable Care Act (ACA) also enabled the federal government to lay down several regulations on such insurance plans.
The same applies to those with self-acquired plans or those working in small or minor companies. Hence, there are differences in the laws for the coverage offered and the premium when working in a small company, which is considered to have less than or equal to 50 full-time employees and a large company with larger number of heads mentioned. This leads us to the conclusion that not all policies are the same.
Lost Group Insurance Coverage
Thanks to the federal Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), individuals who have lost access to group insurance due to job loss, incidents, or any other reasons, may still be allowed to keep their group coverage for a certain time. Most are even given the privilege to enjoy unlimited group coverage.
Though proven beneficial, this may not be applicable in some states wherein COBRA does not exist. However, better options that offer ample benefits are provided. Consider going through the benefit summary booklet provided by your employer for more information with regard to how this may affect you.