From an individual perspective, group health insurance plans offer higher quality coverage, less restrictions, and lower rates than you'll typically find with individual insurance plans. And for employers, professional and trade organizations, religious groups, unions, and other member organizations, a group health plan can be a valuable recruiting tool, an aid in employee and member retention, and the central component of a quality benefits package, in addition to providing valuable health care to those who need it. In short, a well chosen group health insurance plan is a win-win for administrators and patrons alike. The key is choosing a plan that is both financially viable from an administrative perspective, yet still provides adequate health care coverage for those it's meant to serve.

Assessing Your Group Health Plan Needs

Finding a balance between those two needs is easier said than done. That being the case, the first step for any administrator is being realistic about how much you can afford to invest in a group health insurance plan, and what your options are in light of those numbers. Here are a few things you'll want to consider:

• How Much Coverage Can You Afford to Provide?—Though 100% of the health insurance premiums paid by businesses and other groups are tax deductible, it doesn't change the fact that health care costs are a major expense for employers and other organizations. That said, it's important to figure out what you can afford to spend on a group health plan for your employees or members, and then tailor your group health plan accordingly so that it doesn't become a financial liability. After all, 130,000,000 Americans have employer based health care according to the Kaiser Family Foundation, which makes for 130,000,000 Americans who need their employers to stay in business if they want to retain their benefits!


• How Much Coverage do you want to Provide?—You should also consider how much coverage you want, or need, to provide to your employees or members. Do you feel obligated to offer low-deductible, full coverage, comprehensive health care options such as PPO or PSO style managed care, or is a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) going to be satisfactory? Will you offer coverage for employees and members only, or do you want to extend benefit options to their spouses and children, as well? Again, it's important to weigh altruistic tendencies against financial realities in choosing the best group health plan possible for your employees or participating members. The type of plan you opt for will have far reaching repercussions in both areas.


• Assessing the Value of Group Health Plans—Last but not least, don't let the bottom line prevent you from looking at the big picture when assessing the value of a group health insurance plan. Being realistic about finances is important, but so is taking into account intangibles such as the lost man-hours that can be recovered if you have healthier employees, the boost in morale and loyalty that can be gained by making high quality health coverage available to employees and members, and the value of a quality group health plan in attracting new employees and retaining present ones.

Group Health Plans 101 (for Administrators and Individuals!)

Once you've considered group health insurance plans from a big picture perspective, the next step is to look at which group health insurance plan is going to be the best option for you. Whether you're the point man in choosing a group health package for you business or organization, or you are an individual trying to decide between different coverages made available to you through the group health insurance plan you participate in, here is a basic health care plan primer to begin to catch you up to speed.

• HMO, PPO, & PSO—Health Management Organizations (HMOs), Preferred Provider Organizations (PPOs), and Point-of-Service plans (POSs) are all forms of managed group health insurance plans. These plans cut costs by working exclusively with participating physicians who have agreed to fixed rates within a network of health care providers. They range from HMOs that cut costs through highly managed care, to PPO plans that offer participants more freedom in determining their own health care choices, albeit at higher annual premiums.


• HDHP, HSA, & HRA—A less expensive, and more flexible, alternative to managed group health plans is to opt for combination of a High Deductible Health Plans (HDHPs) and Health Saving Accounts (HSAs) or Health Reimbursement Accounts (HRAs). These plans lower premium costs to both administrators and participants, though out of pocket expenses are going to be much higher for the insured due to the high deductible.

Finding the Right Group Health Plan for You

Whether you're starting to lean towards a specific group health plan, or are still unsure which option is the right fit for you, the best way to get the information you need and the value you deserve is to shop around and solicit insurance quotes from an online quote referral service like NetQuote.com. Doing so allows you to compare rates, evaluate different group health insurance plans, seek out the expert advice of multiple providers, and narrow down your options until you find the perfect group health plan for your unique health insurance needs.