Question

As the new beneits manager at Riley Industries, you have decided to implement a high-deductible health plan (HDHP) for the employees. You have heard there are many benefits to HDHPs, such as substancial cost savings resulting from employees taking charge of their health. You have also heard there are disadvantages. For instance, employees are unaware of how to manage these plans.

1. How should you educate the employees of Riley Industries on high-deductible health plans?

2. What if the employees want to keep their previous insurance plans instead?

Answer 1

A higher deductible health Plan, is special type of health policy to reduce the monthly premium, but you have to pay more costs yourself before the insurance company starts to pay as the deductable limit in policy. HDHP can be added with a health savings account (HAS, generally employers use HDHP as tool to reduce recurring health care cost by low premium.

Benefits of HDHP:

• The regular premiums are lower than other traditional plans.
• Contribution in HDHP can combine with HAS to get tax benefits.

In case employees want to keep their previous insurance plan , try to educate employees about how high deductible health plans work , benefit of possible savings opportunities of the monthly saving in health care premium.