Health insurance is probably the most important benefit that employers provide to their employees. For workers, employer-provided health coverage gives them some security about their health in a way that is typically more affordable than individual insurance. For employers, offering health coverage is often a necessary compensation form to remain competitive in the marketplace.
A Fully Insured Plan is what people may think of when they hear the word “Insurance Plan.” The Employer pays premiums to an insurance company that, in turn, assumes the risk of paying medical claims generated by workers.
Companies using a fully insured plan have the advantage of a known expenditure evey month – the premium amount, as opposed to those using self-funded plans where costs can fluctuate depending on claims. This makes it easier for a company to plan ahead financially. Additionally, Fully Insured Plans require less effort and knowledge on the part of the company and it’s administrators as to assessing risk and setting costs of the pool of employees.
Insurance Companies that offer Fully Insured Plans
The following are major federal laws that impact employer-sponsored group health plans:
- Mental Health Parity Act
- Mental Health Parity and Addiction Equity Act
- Michelle’s Law
- Newborns’ and Mothers’ Health Protection Act
- Patient Protection and Affordable Care Act
- Women’s Health and Cancer Rights Act of 1998
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