Job-Based Health Plan - Health Insurance

What Is a Job-Based Health Plan in Health Insurance?

<lingo>A job-based health plan is a health insurance plan offered by an employer to their employees. In some cases, job-based health plans also include those that are offered by unions to their members. Often, job-based insurance extends to each employee’s family members as well. Not all employers offer insurance to their employees. Those that do usually pay some or all of their employees’ premiums. Generally speaking, better-paying salaried jobs are those that come with job-based health plans. It is also common for an employer to only offer health benefits to their full-time employees.</lingo>

Job-Based Health Plans Clearly and Briefly Explained

Typically, employers offer job-based health insurance as a way to entice quality employees. Jobs with health insurance are usually among those that employees want most. 

At the same time, certain businesses are required by law to provide minimal essential coverage to their employees. These businesses are called ALEs (applicable large employers) and can be defined as businesses who employ at least 50 full-time employees. A full-time employee is any employee who works an average of 30 hours per week.

<twitter>A job-based health plan is a health insurance plan offered by an employer to their employees.</twitter>

Employers who voluntarily offer health insurance benefits understand that if their employees take good care of their physical health, it can add value to their entire company. Research has shown that employees with better health (often obtained with the help of better health care) take fewer sick days and are more productive and positive in their work environments. 

Some employers even offer a selection of policy options for each employee to choose from. That way, employees can choose a policy that suits their unique individual or family needs.

At the same time, many factors will determine the quality of a job-based health plan. In rare cases, for example, an employer may provide plan options to their employees but refuse to contribute to premiums. In other situations, the group plan an employer offers will simply not be comprehensive enough. It might also be an extremely comprehensive plan that is too expensive for employees to warrant. In these cases, employees may choose to opt out of their job-based plans.

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