The Patient Protection & Affordable Care Act (PPACA) gives the Secretary of Health & Human Services the authority to define what health plans in the future must cover; i.e. “essential benefits”.
Employers often make those decisions on behalf of their employees, usually weighing coverage options against cost.
Did you know that most insurers already allow even very small groups to have at least two plan design options for employees to choose from?
Even a two person group can offer a lower cost high deductible plan alongside a ‘richer’ co‐pay plan. The employer can set the premium sharing arrangement off the lower cost ‘base’ plan or just split the premium regardless of which plan is selected.
Employees appreciate having options.