Coinsurance: What does it Mean?
To work for a company which offers employee benefits is something many people seek when searching for a new job. Making sure you have benefits offered to you is a top priority. Coinsurance, which is a type of insurance where the insured (the employee) pays a share of healthcare payments. In return, you receive payment coverage for a majority of your healthcare costs. What exactly does this mean?
When understanding Coinsurance and how it works, take a look at the prefix of the word itself: “Co.” “Co,” means “joint” or “mutual.” Having “Coinsurance” means that your insurance is a joint insurance plan connected with your company’s benefits. The way to get the best deals when it comes to coinsurance is to work with a PEO. When working with a PEO (Professional Employer Organization) your health insurance goes through the business aspect and this works in your favor. Your PEO will provide you with the best benefits for your health insurance needs. With understanding what the word “Coinsurance” means, there is a bit of depth in understanding the inner workings of Coinsurance.
Your Health is Covered with Deductibles and Copays
Coinsurance = Peace of Mind
Having Coinsurance allows you to have peace of mind, knowing your healthcare costs are taken care of – but, in order to have this peace of mind, you must pay a deductible. The deductible is the one barrier between you and the benefits of Coinsurance. A deductible is the amount of money you (the employee) must pay before the health insurance begins. Then the company will be able to pay your health care costs on their behalf. Your payment of the deductible is key to receiving the benefits of Coinsurance.
After paying the deductible, you will receive the benefit of paying only a small copay when visiting your doctor. A copay is the amount of money your doctor’s office requires for you to pay, out of pocket, while your company’s insurance plan will cover the rest of your healthcare expenses. There are a few examples of different types of Coinsurance percentages:
With Coinsurance, You Pay:
- 10%, insurance pays 90%
- 20%, insurance pays 80%
- 30%, insurance pays 70%
Most companies offer an 80/20 kind of insurance plan – which is the most common plan you will find with most companies. After paying the deductible, you (the employee) will pay 20% of your own medical expenses, while the insurance will pay for the remaining 80% of your medical expenses.
Show You Care and Attract More Employees
Understanding Coinsurance, deductibles, copays and different types of insurance plans, can be beneficial to you. Coinsurance can, ultimately, help you save money when it comes to healthcare expenses. Develop a trustworthy bond between employer and employee by offering the best benefits when you work with a PEO. Ultimately a good relationship can produce hard-working employees who know they are receiving great benefits. A PEO can help in organizing the expenses of healthcare and provide low-cost Workers Comp and Coinsurance plans for the employers to handle.
Family Insurance Coverage
Having Coinsurance can benefit not only you but your family as well! Coinsurance can extend the offer to your spouse and/or children. Most insurance plans allow for children to have:
- Coverage under their parent’s Coinsurance until the age of 26.
- Health Insurance
- Dental Insurance
- Vision and more
This can be a great thing for your children. Especially for those who do not have any type of health insurance. If you have a family, Coinsurance would be a great option. It diminishes your costs of health care for each person in your household.
Why A PEO?
A PEO is a great tool, especially for small businesses. Small businesses are able to get big business benefits and insurance prices. Working with a PEO can lower the costs of your Coinsurance plans for your employees. This can be an attractive benefit and may bring in a wave of new employees. Providing the best benefits can bring you hard-workers and a productive company. Get yourself familiarized with Coinsurance and get the best insurance for your employees today!