Employee and Dependent Health Insurance: Gotta Keep the Kids Healthy

Companies typically offer you health insurance plans as a voluntary benefit to help attract future and keep current employees; however, they don’t have to offer employees health insurance.  There many plans floating around out there, so it’s important to understand what these plans are and how they apply to you.  You’ve got your HMOs, your PPOs, POSs, and COBRA, just some more acronyms to throw into your life on top of your TV stations.  Each plan has its own attributes.  If your employer does offer health care insurance, then you typically sign up and lock in on a plan each year—you can only switch plans in the next enrollment period—so choose wisely each time.  These plans are managed by insurance companies who have contracts with doctors, hospitals, clinics and other health care providers.  Let’s break these plans down to help you understand the basic gist of it all.  As always feel free to contact your personal finance guide.