As a small business owner, you want to provide the best for your employees. That includes offering group health insurance that will not break the bank. When researching group health plans for your employees, you’ve probably come across the terms “group health” and “blanket health”. Both are different in what type of coverage they provide your employees, so you need to understand how each type of plan works in order to determine which might be right for your employees and your business.
Group health insurance provides health benefits to your employees, their spouses, and any other eligible dependents. With a group health plan, they will have coverage for visits to the doctor, hospital, or any urgent care facility. If you choose to offer a group health plan, you can also include coverage for prescription drugs and vision and dental care.
Blanket Health Insurance
Blanket health insurance is similar to group health insurance, except it is less comprehensive. It is meant to cover a group of individuals engaged in a specific activity. This type of insurance is often referred to as an accident-only policy, because it provides only basic coverage in the event that your employee is involved in an accident or is injured. The benefit of this kind of insurance is that you don’t have to purchase multiple individual policies to get coverage; the coverage you purchase is a “blanket” policy that covers all of your employees.
You can purchase blanket health coverage to provide health benefits in connection with accidental injury, but the policy usually has a limit on the type of procedures and services that are covered.
How They Are Different
While both offer some type of healthcare coverage, group health insurance and blanket health insurance have many key differences. Group health insurance:
- Covers the 10 essential health benefits that are required to be covered by the Affordable Care Act.
- Does not have a dollar limit on what it will pay for care received by your employees.
- Is more comprehensive in what it covers and has more coverage options than blanket health.
- Has policy terms of a full year.
Blanket health insurance:
- Does not have to cover the 10 essential benefits; these plans usually are limited in the types of procedures, tests, and services they offer.
- Usually has a maximum covered benefit amount for each person covered.
- Has a limited term duration.
If you choose group health insurance, you can tailor your plan to your employees’ financial and medical needs. Blanket health insurance is more cost-effective, but you will not be providing full-coverage health insurance for your employees. You need to consider your employees’ different needs, which a single policy, like blanket health, might not be able to meet.
It can be difficult and time-consuming to compare all the different group health insurance plans in your area, but with the help of an EZ.Insure agent, you are guaranteed to find a group health plan that meets your employees’ needs and saves you money. Our agent will assess your business and employees, and will research and compare all available plans in your area, for free. No hassle and no obligation, just free quotes! Easily compare plans now by entering the zip code in the bar above, or to speak directly to an agent, call 888-998-2027.