Evolution in Employer-Based Medical Care
For decades, employers provided traditional group insurance policies for their employees. These policies were reviewed in Chapter 4, highlighting the strengths and weaknesses of these policies. In this chapter, we will review how employer-based insurance has evolved in order to reduce costs and give employees some options, which they did not have under a group plan.
Employers have had essentially two group plan options for their employees: a fully insured plan or self-insured health plan. In a fully insured plan, an employer pays a premium to an insurance company, which in turn covers employees’ medical expenses. Employees typically have a co-pay for an office visit, a medical procedure, or hospital ...
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