Group and Individual Health Plans
What is an H.S.A.?
The HSA is a tax-sheltered savings account with contributions used for medical expenses and can be withdrawn tax free. Deposits are tax deductible and are used to pay for medical expenses until the deductible has been met.
What is an H.R.A.?
Health Reimbursement Accounts are generally company or employer owned/managed health care plans where the employer shares a portion of the risk with the employees.
Individual Health Coverage
If you are part of a group plan, you can enjoy a notable discount on premiums as well as comprehensive policies. If you leave that job or start another one that doesn't offer health insurance, the difference in premium for the same coverage when you buy individual health insurance could astound you.
Individual coverage means the insurance is not attached to a business or to the self-employed. An individual policy can cover your family.
Also, there is no surety that the insurance company will provide you coverage. Each individual plan is medically underwritten and the insurance company could refuse the application or could tack on exclusions to the policy if there are health conditions.
Remember, never go without health coverage. Even if you are healthy, accidents happen and you could be financially destroyed. Also, if you go without insurance for more than 63 days, you'll lose your pre-existing-conditions coverage in most states.
Types of Individual Health Coverage
You'll find that the individual health market offers the same plans as the group market, including health maintenance organizations (HMOs), preferred provider organizations (PPOs), point-of-service (POS) plans, and traditional fee-for-service arrangements.
The best plan for you is based on your choice of doctors, your budget and your health conditions.
You need a knowledgeable agent that can assist you in familiarizing you with your options and find the policy that's right for you and your family. Make sure you disclose your medical history accurately and in full detail. An insurance company can refuse to pay your claims or cancel your policy if your health information is misstated or incomplete.
Group Health Insurance
Health insurance benefits offered by an employer are considered a desirable asset by employees. The group health insurance benefits that you offer to your employees may make all the difference in the type of employees you hire and retain as quality workers.
By obtaining insurance through a company, you may get better rates than through the individual market. There are several Ohio and/or federal tax incentives available to you and your employees when you participate in a group health insurance plan. Businesses can usually deduct 100% of the premiums they pay on qualifying group health plans, and group health insurance included as part of a full compensation package may assist you in reducing your payroll taxes.
In addition, your employees can pay their part of the monthly insurance premium with pre-tax dollars. These are important factors when contemplating group health insurance for you and your employees.
Contact us today to learn more about health insurance plans.