Overview: Health care benefits are an important part of the overall compensation package and employee benefit program that employers use to attract and retain workers. Employees value health care benefits because they soften the financial impact of a catastrophic, unanticipated illness or injury.
Employees are typically provided an opportunity to participate in the employer's group health plan. Eligibility for participation may depend on a number of factors including working for a required period of time and/or an individual's employment status (e.g., full time or part time).
Most health care benefit packages include medical and prescription drug coverage, but many employers offer more comprehensive packages that include dental and vision benefits as well. Basic health insurance covers costs related to hospital care, including hospitalization, inpatient surgery and doctor fees related to the hospitalization.
Trends: The requirements of the Affordable Care Act pose some real challenges for HR professionals and its requirements have a significant impact on how both employers and employees view health care benefits.
Author: Tracy Morley, SPHR, Legal Editor
Employer-sponsored health care benefits are an important part of the overall compensation package used to attract and retain employees. Employers, however, face a number of issues when deciding on employee health care benefits. This section assists HR professionals in understanding the different types of benefit plans (e.g., traditional indemnity, managed care), the benefits that may be offered (e.g., prescription drug, dental, vision), how cafeteria plans work and the impact of the Patient Protection and Affordable Care Act (PPACA).
Soaring health care costs are a top concern for US employers. This section assists HR professionals in choosing strategies to reduce health care costs, including shifting benefit costs to employees, implementing disease management programs and wellness initiatives, and conducting dependent eligibility verification audits.
The newly updated content incorporates changes from the proposed regulations.
HR guidance on understanding the value of health care benefits.