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Enacted to make health insurance more transferable from one employer to another. The law mandates procedures for both new hires and for existing employees who are leaving the company. Employees who are new to a company can use evidence of previous health care coverage that is provided by their former employer to reduce or eliminate the new employer's preexisting condition requirements. Employees who are leaving a company must be provided a certificate of prior creditable health care coverage to use for this purpose.
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A tax-free account that can be used by employees to pay for qualified medical expenses. Contributions do not have to be spent the year they are deposited. Money in the account earns interest and accumulates tax-free. If an employee leaves the job, he or she can take the account with him or her and continue to use it to pay for qualified healthcare expenses. To be eligible for a Health Savings Account, an individual must be covered by a High Deductible Health Plan (HDHP), must not be covered by other health insurance (does not apply to specific injury insurance and accident, disability, dental care, vision care, long-term care), is not eligible for Medicare and can’t be claimed as a dependent on someone else’s tax return. Ask one of our top HR consultants if HSA are a good option for your employees.
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A Health Maintenance Organization is a type of managed healthcare system. HMOs, and their close cousins, Preferred Provider Organizations (PPOs), share the goal of reducing healthcare costs by focusing on preventative care and implementing utilization management controls. Unlike many traditional insurers, HMOs do not merely provide financing for medical care. The HMO actually delivers the treatment as well. Doctors, hospitals, and insurers all participate in the business arrangement.
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