Time,for,Employers,Start,Offer health It's Time for Employers to Start Offering More Health Plans


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Traditional employer health plans may no longer cover the rising health costs of employees. More and more employees are pushing for extra savings and options for medical reimbursement by their employer. As a result of employee demand, employers are finding ways to supplement traditional health plans and give employees what they want. In addition to that, new laws are likely to force employers to cover employees' dependents, including children up to age 26.One very valuable addition to employer health plans is a flexible saving account, also known as an FSA. Employers who offer the FSA option can help their employees save money on health care while taking employee contributions for FSA plans out of paychecks in pre-tax dollars.Flexible savings accounts are not a substitute for health plans but serve to supplement existing ones. For example, if an employee has to pay a $500 deductible before an employer health insurance plan kicked in, the deductible could be covered by the FSA. Many FSAs also pay for co-pays, over the counter drugs and even visits to eye doctors.There is usually a yearly limit on the amount an FSA will pay, perhaps $3000 or so. But that is $3000 that the employee doesn't have to pay for medical care or related services.Then there are medical savings accounts and health savings accounts. These, too, supplement regular employer health insurance by offering options to employee health plans. With medical savings accounts, employees can choose to save ahead for potential medical problems. If the money isn't spent in a given year, it may roll over into the next year and continue to build until it is needed.Health savings accounts are a bit different from traditional health plans or flexible spending accounts. With a health savings account, employers are in charge of saving money and then giving it to employees to cover reimbursed medical expenses. Not all medical expenses will be eligible.Just like  medical savings accounts, however,  the unused money can be rolled over into the next year. Keep in mind that is important to recognize the vital difference between medical savings accounts and health savings accounts. Both are health plans, but the employee contributes funds to medical savings accounts while it is the employer's responsibility to do so for health savings accounts.Another change which helps families is raising the age limit for children covered under their parents' health plans. This means that children up to age 26 may be able to remain on their parents' health insurance policies, definitely helping them to save money and avoid paying for health insurance themselves. This is also particularly helpful for unemployed children, helping relieve stress by guaranteeing medical care.There are some potential pitfalls if companies allow older children to remain on their parents' health plans. Premiums could go up sharply and many company managers have balked at providing health insurance to 26 year olds. Many children in this age group are likely to be very healthy,  making health insurance affordable to them, and leaving health plans' administrators reluctant to offer this option to employers.Even though many employers have been reluctant to extend health coverage for dependents up to age 26, new legislation is likely to make this law. At that point, employers will have no choice but to allow dependents up to age 26 to remain on their parents' health plans.

Time,for,Employers,Start,Offer

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