Commercial health coverage is insurance offered and administered by private, non-government entities. It covers major medical expenses and disability income of the insured. There are two of these popular types of commercial medical insurance plans. One is a group plan and another is individual plan.
Group plan is an option available for employers and organizations providing health benefits for their employees. Group plan will also cover family members and dependents of the employee. Group plan will not cover other dependents of the employee such as kids or spouses. For example, the husband and wife will not be covered in this plan. However, the couple could benefit from group plan as they are one big family.
Group plan is a great choice for employees who are not yet employed and still have to pay part of their own medical bills. If the employer will provide health insurance, the group plan may cover the cost of premiums. In addition, if an employee decides to stay with the employer after the first year of employment, the employer can also cover the costs of premiums. Group plan may also include optional health benefits such as chiropractic care and maternity and rehabilitation care.
Individual plan is for an individual employee and does not require any employer participation. This type of plan only needs an employer agreement. The only drawback with this type of plan is that there is no employer contribution required. The employee must make their own premium payments.
There are also some restrictions on the extent of the individual plan and the exclusions to it. If the employee has to stop working, he or she must stop paying their health insurance premium until they start working again. An employee who is receiving Medicare is excluded from the policy. This also applies to an individual who is covered by Medicaid or a program designed to help people with disabilities.
In case you want to purchase an individual plan, be sure to compare rates. Many people do this by contacting their state’s health department. State insurance departments will usually offer a quote service for free.
Before purchasing commercial health plan, you must make sure that the plan is best suited for your needs. It should cover basic medical expenses such as prescription medications, physician visits, emergency room visits, emergency care, and emergency transportation. It must also cover the costs of skilled nursing facility or home health care if necessary. Medical expenses are not the same as those that you can find in a group plan.
You may need to obtain a medical exam to prove that you are physically fit and have no chronic conditions. The exam will also determine whether you qualify for a discount on the premium. In case of an emergency, if you are self-employed, your employer will pay for the rest of the premium unless they have a group plan.
Many health insurance companies also offer special discounts for certain types of workers. These include children enrolled in a child care program, and employees participating in a work-study program. Certain companies offer a discount if your company is located within a specific area. A discount will be available for any family members that are eligible to work for your company.
Do not forget to compare quotes from different medical insurance companies. You can find a comparison site online that will allow you to search quotes from different companies side by side.
The health plan that you select must cover at least one of the major categories of medical services. Otherwise, you are probably better off purchasing a group plan.
You can also get the most affordable price if you combine your employer health insurance plan with your own. if you have an employee that works for a smaller company. Often you can save money by using this option.