Employee-offered health insurance is also known as group insurance, or insurance that is offered to an entire group at the same time. This does not mean that the company will offer the same kind of health insurance to all employees. On the contrary, executives often have far different health care packages than lower-level employees. Even so, the business does contract with a health insurance provider to create a plan that can be used for multiple employees. These policies operate as a benefit or incentive for the employee but are not mandatory.
Offered Insurance
Insurance is offered by companies, but it is not required that an employee accept. In the United States businesses cannot force any employee to accept their personal health insurance. Employees can choose to waive nearly any benefit, including health insurance, through the business. There are many reasons for this. The employee may already be covered under a spouse's plan and may not need their personal health insurance. Other employees may prefer to use individual health insurance that has lower premiums and more customization options.
Eligibility
Eligibility is another key factor in employee health insurance. Not only can employees refuse the offer of health insurance, some do not qualify for it at all. For most businesses, an employee needs to work full time to be eligible for the health plan. Other organizations may require an employee to work at a certain level in the company first. Laws require that a business offer certain benefits to an entire category of employees, but companies often impose their own caveats. Most companies have a waiting period before the health insurance becomes active.
Insurance Enrollment Trends
Insurance enrollment among employees has actually decreased in past years as more and more employees have taken advantage of their ability to waive their group health insurance. Several reasons exist for this, but the most common reason is the rising costs of work health insurance. With more inexpensive private health insurance options made available, employees often prefer less-expensive options than participating in work plans, where they may end up paying up to 80 percent of a much more expensive plan.
Reasons to Enroll
Despite the rising costs, many reasons still exist to enroll in employer-offered health insurance. If an employee has a family, group plans are often the best option because this insurance offers coverage for spouses and dependents, like children. Others may prefer work-oriented health insurance because of its preventive benefits or extra options like health savings accounts.
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