Group Health Insurance

Group health insurance is employer sponsored and usually comprised of HMO, PPO, and POS plans. Also included are consumer driven products, such as HRAs (a health reimbursement account), and HSA accounts (a health savings account for those with a High Deductable Health Plan). Short-term health insurance is also available for the newly employed who are not yet eligible for group health insurance.

Life

Health Insurance Plans


Each separate healthcare option is detailed below to give you a clearer indication of how each plan works, so that you can better decide what option suits your needs.

HMO (Health Maintenance Organization)

An HMO(Health Maintenance Organization) is generally one of the least expensive health insurance options, but it is also the least flexible. Members are limited to a network of participating providers and hospitals, and they must often attain a referral before seeing a specialist.

PPO (Preferred Provider Organization)

A PPO(Preferred Provider Organization) (Preferred Provider Organization) is more flexible than an HMO, but typically has a higher premium. There is a network involved with PPOs, however, members have the option of staying in-network for lower out of pocket costs, or venturing outside the network if preferred, incurring higher out of pocket costs. Furthermore, there is no referral process necessary.


POS (Point of Service)

A POS(Point of Service) (Point of Service) plan is a hybrid of the HMO and PPO. Like with an HMO, a POS member must often attain a referral for specialist visits in the network. However, members have the option of going to a participating provider without a referral and a physician outside the network at higher out of pocket costs.

Consumer Driven Health Plans


HRA (Health Reimbursement Arrangement)

An HRA(Health Reimbursement Arrangement) reimburses employees for qualified medical expenses. They are entirely employer-funded and there is no limit on the amount an employer can contribute. Employees are not allowed to contribute, so the sum is not attributable to salary reductions. Cash payouts are not permitted, but a former employee may continue to receive subsequent coverage periods. Since an HRA is a group health plan, it is subject to COBRA continuation coverage requirements. Employer-provided coverage and medical care reimbursement amounts are excludable from the employee’s gross income. HRAs may not reimburse expenses before the account was in existence.

HSA (Health Savings Account)

An HSA is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP)(High Deductible Health Plan). Account funds are not subject to federal income tax at the time of deposit and may be used to pay for qualified medical expenses at any time without federal tax liability. Withdrawals for non-medical expenses are treated very similarly to those in an IRA account in that they may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier.

With HMO, PPO and POS plans, and short-term health insurance, Synergy Benefits provides peace of mind for employers and employees. Furthermore, Premium Only Plans, health reimbursement accounts through HRAs, and health savings accounts from an HSA account (for those with a high deductable health plan), provide members with added financial security.

For further questions and inquiries, go to the Contact Us page for contact information.

Click the button below to contact an Insurance Specialist at Synergy Benefits to receive a quote on these types of insurance plan options.