looking at health insurance information on a laptop

A Beginner's Guide to Group Health Insurance

In 2019, there were almost 29 million uninsured Americans. Many companies say they can't afford health insurance for their employees. If you are looking for affordable options for health insurance for you and your employees, group health insurance is a great option!

Keep reading to learn more about what group health insurance is, the benefits of group health insurance, and more!

What Is Group Health Insurance?

Group health insurance offers insurance plans for larger groups of people. This can be any type of group but is most often consisting of employees in a company. Rather than having individual plans, group health insurance plans offer full-time employees benefits.

There are many benefits that come from using this type of insurance for employees. These types of plans are common in the United States and Canada

How Does It Work?

To start a group insurance plan, your company or organization will choose a plan that works for them. Employees and group members are not required to join, but they have the option to accept or decline coverage.

In many cases, you can also choose a plan with coverage for your dependents! While it may seem too expensive to get a group health insurance plan, it actually often costs less. Because there are so many people who use the plan, it makes it a more affordable plan.

Benefits of Group Health Insurance

There are many reasons why you should consider getting or joining a group health insurance plan. Here are the top group health insurance benefits.

It Is Easy to Be Accepted

As mentioned before, there are millions of people in the United States that have no health insurance coverage. Many times, people with chronic illnesses or medical issues are not able to get coverage. Their medical issues make them a risk for insurance companies to accept and to cover.

However, it is easy to get accepted to a group health insurance plan. The plan will apply to anyone in the group and it doesn't even require a physical exam or a medical history. So, this is a great option for people who have pre-existing conditions, who are at higher risk, and for those who have struggled to get insurance coverage.

Lower Costs

If you are considering getting a group health insurance plan for your employees, one of the main benefits is that the cost of insurance is less than your typical insurance plans. Because there are so many people in a group, the risk is spread among all group members. This makes it less expensive.

Another reason why it is less expensive to use a group health insurance plan is that the cost is spread between the whole group. Group members will all contribute to the total premium cost.

Because group health insurance is less expensive than individual insurance plans, it is a great and affordable option for you and your employees!

Tax Benefits

Not only do group health insurance plans cost less upfront, but they also are often tax deductible. When you are filing your taxes, you can save even more money.

Before you file your taxes, research the available tax deductions and options that will allow you to save money on your taxes.

Happier Employees

Finally, one of the biggest benefits of having a good health insurance policy for your employees is that they will be happier and more productive. In fact, a study by Oxford showed that workers that are happy are 13% more productive.

If you provide good benefits for your employees, you will see a return on productivity levels in your workplace.

Types of Health Insurance for Employees

There are many types of health insurance that you can consider for your employees. Depending on the type of insurance and the plan you choose, the quality and price of the plan will differ.

Here are the most common types of health insurance for employees.

HMO

HMO plans are also known as health maintenance organizations. In this type of plan, your employees choose a primary care provider from in-network providers. With this type of plan, the costs of your plan are lower and more predictable.

Copays and deductibles in HMO insurance plans are often lower. This is a great option for health insurance if you are looking to cut costs!

PPO

PPO plans are also known as preferred provider organizations. In this type of plan, you don't need to choose a primary care provider. You can choose the doctors that you want to see.

If you choose a doctor within the network, you get a higher level of coverage, but you can still choose doctors out of your network.

EPO

An EPO plan is also known as an exclusive provider organization. It is a mixture of both HMO and PPO plans.

Just like with a PPO plan, you don't need to choose a primary care provider. However, you might not be covered if you choose a doctor outside of the network.

Find a Reliable Insurance Provider Today!

Group health insurance is a great option for any size company and offers many benefits to business leaders and employees. Finding a reliable insurance provider is necessary if you want to get the best plan possible for your company.

If you are ready to get a group insurance policy today, Harrah & Associates, Inc. can help! Our company has been in business since 1955 and we tailor insurance programs to meet the needs and budgets of our clients. Contact our team today to learn more about our policies if you are looking for insurance in New Jersey!


Essential Considerations for Returning to Work - Video & PDF

Webinar Summary:

Recently, Governor Murphy sketched out the benchmarks New Jersey will have to reach before the COVID-19 lockdown can be lifted. The stay at home order will remain in place until further notice, but the Governor said he expects the timeline for reopening to be measured in weeks, not months.

Returning to work will bring new legal and practical challenges for employers in all industries. The New Jersey Agents Alliance and its Member Agencies are pleased to invite you to a complimentary webinar by Clark Hill and HR/Advantage Advisory Services and hope that you will join us for an engaging discussion on the following topics:

  • Safely returning your employees to the workforce
  • Relevant federal and state guidance
  • Best practices for dealing with vulnerable workers, refusal/reluctance to work, and employee anxiety
  • COVID-19 positive workers and claims of workplace exposure
  • Why it’s important to formulate your workplace policies now
  • How we can help

Please share any questions that you may have about your returning workforce when you register.


nurse with an elderly asian woman

What You Need To Know About Long-Term Care Insurance Claims

How many times have you thought about retirement?

Do your plans involve any health care plans?

Are you taking good care of yourself to ensure good health in your golden years?

Even if you do, what if something happens and you need to be taken care of?

You think Medicare has it covered, right?

Well, I hate to burst that bubble but, long-term care is among the things Medicare doesn't cover.

If by any chance you’ll need long-term care services in your old age, you may burn through your retirement savings paying for senior care and start having problems once it runs out.

You may not know this, but nursing homes cost a little over $100,000 annually, a figure that’s projected to rise in the future.

This can prove to be a heavy financial burden, more so in your retirement years when you may no longer be working.

Long-term care insurance claims can help protect you against such expenses.

What Is Long-Term Care Insurance?

Long-term care insurance, shortened to LTI, is a policy that covers expenses associated with chronic health conditions.

Essentially, it is a health insurance cover for something that you are not likely to recover from, such as Alzheimer's.

As a policyholder, you’ll pay premiums regularly until you need to get care.

When the time comes that you need care, the insurance company will offer you funds on a daily or monthly basis depending on the policy.

If you live a long life, at some point, you’ll need some kind of care, whether in your home or in a senior facility.

Unlike healthcare insurance, long-term care claims only pay for eligible personal care.

Eligible care typically includes daily living activities such as bathing, eating, and mobility.

LTC policies are not usually standardized, like regular health insurance claims to you must compare benefits, coverage, and premiums.

Besides that, these premiums rise with age, so be prepared for a price increase in the future.

Once you receive care, however, you’ll no longer have to make payments.

What Do Long-Term Care Insurance Claims Cover?

Different long-term care insurance companies may offer different covers, but there are certain things that are basic. Some of them include:

  • Adult daycare
  • In-home care
  • Nursing home care
  • Community care
  • Skilled nursing care
  • Care by family members

You should inquire with the insurance company because some of them do not pay for family caregivers unless they have the appropriate license. You may have to stay in a state-licensed agency or a care facility for them to pay your claim.

Is Long-Term Care Insurance For Everyone?

Why should you bother yourself with long-term care insurance claims?

What if you don’t need care in the future?

Most people only consider purchasing these premiums when they are closer to retirement age.

However, at that age, premiums are usually more expensive than they would be at a younger age.

Long-term care insurance companies may decline long-term care insurance claims to people already suffering from pre-existing conditions or a history of serious health conditions.

If you are in this position and the company accepts to offer you the policy, you may have to pay more.

Can Long-Term Disability Insurance Cover Your Long-Term Care Needs?

In a nutshell, no. Disability insurance pays benefits based on income.

Once you retire, you may have to depend on savings and social security funds.

The problem with long-term disability claims is that most of them end at age 65.

What’s The Best Time to Buy Long-Term Insurance?

Ideally, you should purchase the premiums in your 50s.

If you wait till you hit 60, it might be hard to find coverage, and it’ll be more expensive.

If you buy before turning 50, you’ll be committed to payments for a longer period of time.

What Will Happen If You Don’t Use The Claims?

Unfortunately, traditional long-term care claims do not offer a way for family members to recoup unused funds.

To get some kind of compensation from it, you may purchase a hybrid cover instead.

This will offer you either long-term care or death benefits depending on what you’ll need.

A hybrid premium is so much more expensive, though.

What Are Long-Term Care Insurance Waiting Periods?

Even if you do not have a pre-existing health condition, an insurance company may subject you to a waiting period before they approve your claim.

This waiting period is also known as the elimination period, and everyone has to satisfy it before they get benefits.

Long-term insurance policies don’t pay for short-term care, so the company imposes an exclusionary period every time you require care.

Some long-term care insurance companies may assume that during this period, your Medicare policy will take care of intermittent needs.

What Are The Long-Term Care Insurance Costs?

The most significant downside to long-term care insurance claims is how expensive it is.

It's cheaper compared to all the benefits you’ll get if the time comes and you need long-term care, but these policies come with hefty premiums.

Consider several factors to determine the costs:

  • Your age when you start paying the premiums. Generally, the better health you are in and the younger you are, the cheaper they are.
  • The maximum benefit the insurance company will pay per day
  • The maximum length of time they will pay for the benefits
  • The waiting period. The longer you take to get approval, the cheaper the premiums get
  • Whether it’s a hybrid policy

Do You Think This Policy Is For You?

Long-term care insurance claims make sense as you’ll be safeguarding against very high potential costs in the future.

If you have to live in a nursing home or an assisted living facility in the future, the burden may be too heavy to bear for you and your family.

Do you have more questions about long-term care insurance claims?

Are you wondering if it’s right for you?

Get in touch with us, and we’ll help you make that decision.