Health Insurance Articles
Why Many Employer Provided Health Insurance Plans Provide Insufficient Amounts Of Coverage
2010-04-01
Health insurance plans are often the most important benefit that companies provide to employees. In fact, some people may stay with jobs they would otherwise leave simply because of the health insurance that the position provides. Yet, some employees may be completely unaware that the health insurance coverage their employer provides is not sufficient to cover all of their health needs. Few people read their coverage booklet cover to cover and so they may be unaware of the holes in their coverage.
Imagine if you were a company that has decided to provide health insurance to their employees. You know it will help attract quality employees. You know those employees are likely to miss less work than employees who have no health coverage. Plus, when there is stiff competition from other companies for top employees, good health insurance plans can make the difference between keeping or losing an employee. Knowing all this information, you look for insurance companies that provide enough coverage for most of your employees while not going over the company's benefits budget. Unfortunately, keeping coverage affordable means some employees will find out that their health insurance coverage isn't enough for their specific health conditions or situation.
Pull out the information you have on your coverage or contact your benefits coordinator in the human resources department at your place of employment to get another copy of the information. You may also be able to access it online. Read through the documentation, looking specifically for five things. First, find out what your deductibles might be. Often they can be different for in-network and out-of-network coverage. Next, look at your co-pay or co-insurance amounts. Co-pays are a flat rate amount you have to pay towards regular health care and prescriptions. Co-insurance is a percentage amount that you will be responsible for paying after your deductible and any co-pays. For example, if your co-insurance is 20%, it means you would pay 20% of any hospital bills, and your insurance provider would pay 80%.
Next, determine your annual out-of-pocket maximum - this is the most you will be made to pay in any year, regardless of what your health insurance covers. There is one exception to this - the annual maximum and lifetime maximum of your coverage. If these are low, you could end up with huge bills in case of a severe accident or debilitating illness. Finally, find the section on conditions that are not covered. By doing this research, you'll understand whether or not your health insurances is sufficient and whether or not you might want to supplement it to protect the physical and financial health of your family in case disaster should strike.
