Group Medical Insurance

• Group Medical – a significant portion of employee compensation
• Many plan varieties allow for a plan design to fit your group
• Cost-effective and simple administration plans available

A large majority of people are currently covered under some type of group medical plan. Many of these are provided through employer sponsored plans. These plans have become a significant portion of an employee’s compensation, especially with the continuing rising costs of medical care.

There are many advantages to a group medical plan, including the cost sharing and purchase power present where a group of individuals are to be covered.

Larger groups may find the assistance of a broker or consultant is especially helpful, as the needs and complexities of establishing and administering a plan require additional expertise. This is especially true if the group takes advantage of some of the alternative funding arrangements that are typically available to larger groups.

While smaller groups will still find many advantages to a group medical plan, the variety of choices are typically more streamlined to help maintain better cost efficiencies and to simplify administration.

Depending on the location and demographics of the group, a number of plan designs may be available. These may range from a traditional medical plan (often referred to as an indemnity plan), or some type of managed care plan, where selected panels of providers are established to offer cost discounts and more management of the medical care process. Some examples of managed care plans will include HMO (Health Maintenance Organization), PPO (Preferred Provider Organization), and POS (Point of Service). Most of these plans will have specific geographic limitations, because of the selected provider panel and their locations.