In an effort to help non-profits find group insurance that is less expensive, several companies are offering “Tier Two” group plans with scaled back benefits. In order to do this one company increased their co-pays, lowered health-screening and annual physical examination benefits, limited outpatient mental and nervous disorder care and cut provision for home hospice health care.
Another company put a maximum of $600 per day for hospital room and board and $1,500 for an Intensive Care Unit. They cut the transplant benefit to $250,000 and put a cap of $6,000 on maternity coverage. Also they included a clause stating that no pre-existing conditions would be covered for the first 24 months a person was insured. The plan provides no wellness benefit.
Of course these plans are not as rich as the “Tier One” plans offered by these companies but it means that the rates are as much as 30% lower. In a time of budget crunch these plans enable a non-profit to still provide group health insurance to their overseas employees. Please contact us if you would like a group quote on either of these plans for your non-profit.
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