Product Overview > Group Plans > Medical

Why is Group Medical coverage important?

Medical Insurance is the cornerstone of every employee benefits program. Since medical bills can easily become a crushing financial burden, the existence of a good medical benefits plan is usually the second concern, after salary, that a potential employee asks about when seeking employment.

From an employer's standpoint, it is a key element in attracting and retaining desirable employees. As a result, a medical benefits plan is offered by the majority of businesses as an essential part of the business operation.

How is this type of coverage purchased?

Purchased as a group plan, medical insurance provides better benefits at a lower premium than any individual medical plan an employee might purchase on his/her own. Typically today the employer and employee share the premium cost involved. The employer pays the bill directly to the insurance company and then collects the employee portion of the premium, if any, through payroll deduction.

There are numerous insurance companies offering medical coverage, and a great many different plan variations available. Most plans sold today are either Health Maintenance Organization (HMO), Point of Service (POS), or Preferred Provider Organization (PPO) plans, all incorporating some degree of managed care arrangement. Most plans are "fully insured" to minimize any potential risk to the employer.

Key considerations when choosing a plan include:

• Cost to be born by the employer.
• Cost that must be passed on to the employee.
• Available network of providers (doctors, hospitals, labs).
• Plans offered by other employers competing for the same employees.

How to learn more:

Your Kistler Tiffany Benefits representative will work with you to help you select an insurance company and a plan that will satisfy the needs of your employers while fitting within your company's expense budget. Your representative will also help you determine if some form of alternative funding, such as minimum premium or self-funding, is suitable in your situation.