Basics of Total Rewards

Medical Plans

Group medical plans provide health care benefits such as hospital and emergency rooms, surgeon and physician fees, pharmaceuticals, etc. Both in-patient and out-patient services are included. They are typically subject to a deductible and an out-of-pocket maximum.

Full-time employees are usually eligible for medical plans, although companies that rely heavily on part-time workers may make them eligible for coverage, too. These benefits normally are received free of any income-tax liability.

In organizations today:

• Healthcare Savings Accounts (HSAs) have been introduced to accommodate rising healthcare costs.
• High-deductible health plans (HDHPs) have also been introduced which are akin to the traditional indemnity health plans offered by old-line companies many years ago. The HSAs and HDHPs are offered as a lower cost and more tax effective healthcare coverage.
• HMO, PPO, and POS plans continue to be offered as part of standard medical plans by most organizations.
• Including hospice, outpatient, and mental health care in plans is a rapidly increasing trend.
• Benefit plan communications, design, and administration is increasingly being outsourced to experts in the field due to increased regulatory complexity.
• Telemedicine is frequently included in the medical plan.
• A health culture is being embraced by companies.