Indemnity Plans – A group indemnity plan allows for members to have a greater degree of freedom and choice when selecting which health care provider they would like to see. Unlike an HMO, an indemnity plan does not require a referral to see a specialist or a particular doctor and there is no need to choose a primary care physician. Indemnity plans often require a deductible to be met before the insurance company begins paying claims and are a type of “fee for service” coverage in which insurance reimburses the patient for services.
Managed Care – Managed care plans are a type of group insurance option that offer participants reduced costs for health coverage through a contracted plan. The costs typically vary based on the number of options available and the level of flexibility preferred. HMO, PPO and POS (Point of Service) plans are examples of managed care health insurance. An HMO pays within a network of agreed upon providers, a PPO will still offer some coverage for going to an out-of-network provider and a POS plan allows a participant to choose between either.
Health Accounts – One of the best ways to offer your employees an opportunity to maximize the benefits of their health spending is to have an option for a tax-advantaged health care account. With health savings and flex spending accounts, employees can set aside a portion of pretax income to help offset the out of pocket costs of health services. Another advantage of a health savings account (but not a flex spending account) is that the money can be rolled over if it’s not used by the end of the year.