Employee Health Insurance Guide

By: EconomyWatch Content   Date: 8 February 2010

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In any business, it is the employees that are central to the company’s development and the realization of its business objectives. What keeps the employees really happy, apart from a good salary and a competitive work environment, are employee benefits. In order to maintain a good workforce and increase productivity, various employee benefits have been introduced by employers. One such important benefit is employee health insurance.

Most businesses offer health insurance to their employees at affordable rates, which otherwise is too expensive for individual purposes. Employee health insurance is a monetary agreement between the employer and the insurance provider. According to the terms of the contract, all medical expenses of an employee, including physician visits, surgical procedures, cost of medicines, and diagnostic tests, are paid by the insurance company through the employer.                                                         

Health insurance for employees depends on the level of coverage they require. The coverage is determined by the amount of premium and the employees’ healthcare needs. Employee health insurance is provided by both small businesses and large corporations to their full time and permanent employees. In today’s times, health insurance is one of the prime reasons that an employee stays with an organization. Therefore, as an employee, you should conduct thorough research and learn the ins and outs of the insurance plan provided by your employer. Ideally you should:

·        Understand the differences between an individual and an employee health insurance plan

·        Understand how health insurance works and how you contribute to it

·        Know what to expect in the enrollment process

·        Choose the most appropriate plan that suits you and your family’s needs

Employee Health Insurance: Legal Provisions

Most employers, by law, are not required to provide health insurance benefits to their employees. Although the practice of providing insurance to employees is fairly common, there are federal laws that protect employees from discrimination and abuse of rights. Once an employer decides to provide insurance benefits to an employee, the law requires him/her to adhere to federal guidelines prohibiting discrimination on the basis of the employee’s gender, race, age, national origin, religion, or disability.

Other acts, such as the Employee Retirement Income Security Act (ERISA), require employees to practice fair standards in employee health benefits and act in their best interests. Violation of ERISA can lead to serious consequences, from blacklisting of the company to legal action against the business owners, imprisonment and hefty fines.


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