A good employer protects his workers, and one way is to secure their health. There are two ways an employer can provide health insurance to his employees —premium costs and out-of-pocket expenses. With these options, expenditures can be divided into various payments and savings plans.
Out-of-pocket Employee Expenses
- Deductible: As a yearly amount, this is the cost that an employee has to shoulder before the insurer begins recompensing for healthcare services. For example, if you’re an employee who needs to pay medical expenses, the required deductible must be met first before the insurer takes care of the rest of the costs.
- Co-payment: This is what you pay directly to a healthcare provider at the time of service. Not all plans or services necessitates this.
- Coinsurance: Aside from deductible, some insurance companies provide an option for employees to pay the percentage of insurance expenditures. For instance, if the coinsurance is 20%, you need to pay for it before the insurer takes care of the 80% of the covered medical bill.
Shared Employer and Employee Expenses
- Premium: Due at regular intervals, insurance payments are made to the health insurer to keep the coverage. In most cases, employers shoulder the larger share to help employees pay their premiums.
- A health savings account or HSA: Meant for future medical incidentals, health saving account is tax-free. Typically, employees do the funding on their own, but some employers may contribute a part of the funds as well.
- A flexible spending account or FSA: Unlike HAS, Flexible Spending Account is a pre-tax account, meant for healthcare budgets not covered by insurance. It also includes deductibles and copays. The FSA is expected to be utilized by employees by the end of the year. Unused funds go back to the employer.
One More Thing Before You Go
Maximize the suitability for you and your family. Have adequate assistance by getting the basic health insurance plan today from a reliable insurance provider.
At Roper Insurance Services, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (828) 697-6709. Get your free quote today by CLICKING HERE.