Many employers look for ways to retain their best employees, which can be offered through a benefits program. One of the top benefits offered by employers these days is a high-deductible health plan.
Whether you’re a small or large business, this type of health plan might be applicable to you and your employees. Read on to learn more about it and decide whether or not it might be an option worth considering.
What is a High-Deductible Health Plan?
A high-deductible health plan comes with low monthly premiums, but in exchange, it comes with high deductibles. This means in order for coverage to begin, the individual insured will have to pay more out of pocket for health services they receive.
How Do Low-Deductible Health Plans Compare?
When compared to traditional HMO or PPO health plans, high-deductible plans come with lower monthly premiums and a higher deductible. Traditional plans, on the other hand, have higher monthly premiums and lower deductibles.
Unlike low-deductible health plans, high-deductible plans allow the insured individual to open and contribute to a health savings account.
These plans also often come with potentially higher out-of-pocket expenses. However, with lower premiums each month, they’re attractive to the average healthy individual as they allow for greater savings throughout the year.
Why are More Employers Offering HDHPs?
High-deductible health plans are suitable for many employers. Lower premiums mean fewer expenses for employers, making it an ideal option for new businesses and for small companies. This is also reasonable for those with a high number of staff needing coverage.
Employers who also offer health savings accounts as a benefit for their employees will also be interested in offering a high-deductible health plan, as they are compatible.
Not to mention, employers with a diverse set of workers may find a high-deductible health plan better than a low-deductible health plan. The former is best for healthy individuals and those with families, which is often the bulk of a company’s workforce.
Who Could Benefit from HDHPs?
While high-deductible health plans aren’t the best option for every single person, they can be beneficial for many, hence why many employers offer this benefit.
People who are generally healthy, don’t have extensive health care needs, are young and single, and/or those looking to invest in a health savings account will often best benefit from a high-deductible plan. Those with a higher income may also love a high-deductible plan as they offer better tax advantages.
All in all, no single health plan is perfect for everyone. Nonetheless, high-deductible plans can be ideal for many.
How to Ensure Smooth Health Plan Enrollment
Getting your staff enrolled in a high-deductible health plan as part of your benefits program can be complicated. It can also be time-consuming. Plus, just educating your staff on your benefits offerings, helping them navigate enrollment, and encouraging them to enroll before the deadline are tasks in themselves.
You can make health plan enrollment a breeze when you partner up with Employee Retention Benefits. Get in touch with us today for help streamlining your enrollment process.
