The majority of people get their insurance through their employer and this includes their health insurance. While many employers do offer life insurance and retirement plans the main benefit that everyone looks for in a good job is health insurance.
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Even if someone does find a great health plan through their employer, this coverage might not be enough. Many people today are choosing to buy extra health insurance especially if they have had certain conditions in the past like cancer. Find out more about types of coverage a cancer survivor might need at such websites as the one offered at Cancer.gov.
Why is employer-provided health insurance so sought after?
One of the main things that someone in the United States looks for when they are thinking about taking a job is whether that employer offers coverage to their employees. Having health insurance through an employer just makes thing easier for most people.
The cost of the policy is taken out of their paycheck, so they do not have to worry about paying an extra bill each month. Health insurance tends to cost less when purchased through an employer. By choosing to purchase insurance through their workplace, many people are able to purchase several types of insurance all under the same plan. These insurance options typically include:
- Health insurance
- Life insurance
- Accidental death and dismemberment insurance
What are the different types of health insurance plans?
Four types of health insurance plans are familiar to most. These types are:
- Health Maintenance Organizations
- Preferred Provider Organizations
- Health Savings Accounts
- Fee for Service
A Health Maintenance Organization plan or an HMO is a widely used, but not always a well liked plan. The reason this type of plan is not liked by many people is that it does not allow them to choose any doctor they want. Instead, the policyholder must choose from a network of doctors that have been approved by their particular HMO. This becomes an issue if someone has used the same doctor for years and has a new job that offers an HMO plan and that doctor is not included in the new network.
Since it can often take quite some time for someone to trust and become comfortable with their doctor many people are very reluctant to change. This is why a Preferred Provider Organization or PPO plan is a very popular choice for people. This type of health insurance plan works much in the same way as an HMO, except the policyholder can choose any doctor they want.
A popular option for many people in the last few years is the Health Savings Account or HSA plan. With an HSA, the policyholder has a savings account that is tax-free and can be used to save money for routine medical costs. The other side to an HSA is the actual health insurance coverage. This coverage is part of a plan that has a higher than usual deductible. This deductible keeps the monthly payments low.
Employers do not typically offer a Fee for Service or FFS, health insurance plan. This is more common as a plan for individuals. This type of plan simply reimburses the policyholder for a certain percentage of medical costs that they have already paid for.
Even if someone has health insurance through their job, should they still buy individual health insurance?
Many people choose to buy outside insurance to fill in any gaps their employer-provided plan might have. This is called supplemental health insurance. This is a great option if someone feels that the health insurance through work does not offer enough coverage or they have certain insurance needs not offered.
Some popular forms of supplemental health insurance include accident insurance and hospital confinement indemnity insurance. Most health insurance offered through an employer offers some form of accident insurance, but if the policyholder feels they need more accident coverage, they can purchase another policy on their own.
Hospital confinement indemnity insurance is a great option for those that worry about what would happen if they had to stay in the hospital for an extended period. Even a short hospital stay can end up costing a lot. No matter what type of health someone has, not all costs will be covered. This type of supplemental insurance is a great way for someone to protect themselves even more.
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