Benefits Basics The 5 must-know types of medical coverage

To make sure you're providing your employees with the best medical coverage you can, you need to know what's out there.

Here are today’s five most common options:

1. Fully insured plans

The employer pays a fixed premium rate to an insurance carrier based on the number of employees enrolled in the plan.

2. Partially self-funded plans

The employer assumes some of the financial risk for providing health care benefits to employees.

3. Managed care

Provides incentives for employees to use in-network physicians and hospitals – common plans include preferred provider organizations (PPOs) and health maintenance organizations (HMOs).

4. Physician-hospital organization

An alliance of physicians and hospitals that sell their services to managed care companies or directly to employers.

5. High deductible health plans

These feature higher deductibles than traditional insurance plans, and are usually combined with health savings accounts (HSAs) or health reimbursement arrangements (HRAs) to allow employees to pay.

50% of employers say that cost-sharing with employees is an important benefits strategy.(1)

Sorting through the choices

With health care costs rising, it’s more important than ever to choose coverage that best fits the needs of your workforce. That’s where Automatic Data Processing Insurance Agency, Inc. (ADPIA®) comes in. Our licensed agents can help you take a good look at your current coverage, help you understand your options, and work with you to come up with a plan that makes your employees and your wallet happy.

Contact us and we can help you find the right coverage for your business.