Health Insurance Articles
Choosing Either Employer Sponsored Or Private Health Insurance Coverage
2010-10-03
When looking for a health insurance quote, the two most common types on the American market are those for individual insurance policies and those for employer sponsored health care. Although having one type does not preclude an American from also having the other, and while both types operate in a similar fashion-using HMOs, PPOs and self-directed plans as models-there are times when one option or the other will be better for a family or individual due to budget or health concerns. Both types of plans offer advantages to families and single workers who are looking to find the best value for their dollar, and employees would be wise to consider their options before ultimately making a choice.
Employer sponsored health care is generally cheaper on the premium side than an individual plan. This is because an employer plan is tailored to the largest number of people-a company or group of companies-and will include basic coverages and services. More specific options such as vision or dental plans, or treatment plans for mental or neurological disorders, will not typically be covered in an employer sponsored health care plan, as the employer will be footing a portion of the overall cost and will not want to pay too much. On the flip side, having employer coverage can mean a lot if an employee is laid off. Once employees have been with a company and on the health plan for a certain length of time, they are eligible for COBRA health coverage by the federal government, and this operates even if the company goes out of business. COBRA provides the same level of health care for an employee and their family for up to a year and can only cost the original premium plus a certain percentage, although the entire premium cost must be borne by the insured. Still, it is a way to keep consistent coverage even if you are laid off or between jobs.
An individual plan can be tailored to a family's needs with higher deductibles, increased annual maximums or other extras that are needed. This can make a family plan a great idea for those that have sick children or a history of family illness. In some cases, it can be beneficial to have employer coverage for the basics and a second plan to cover the more specific maladies that may arise.
No matter which type of healthcare is chosen, it is important to review all documentation and know exactly what the health insurance quote will cover and when. Employer sponsored health care can be a great way to stay healthy, but only if it covers what is needed.
