U.S. Employee Sponsored Medical Health Insurance: A Brief Overview

U.S. Employee Sponsored Medical Health Indemnity: A Brief Overview

Medical health indemnity is vital for a number of reasons. One- people receive protection hostile to uncertain and hefty medical expenses and two- they are assured for feature healthcare services. In addition to this, health indemnity is related to superior health outcomes, lower mortality and hence more productive employees.

The statics of U.S. health indemnity market indicate that nearly 2/3rd of the U.S. population is under the age of 65 being and receive employer-sponsored health indemnity. While most of the companies offer health indemnity to their employees as a fringe benefit, in an estimate there is at least one member is each family who is working with companies providing health indemnity. Employer-sponsored medical health indemnity is a lucrative option to offer because of the inherent tax treatment benefits to both the employer and the employee. In addition to this, a companionship sponsored health indemnity is less expensive than a private health indemnity for the same set of benefits. 

Generally, companionship sponsored indemnity applies certain conditions such as the employee shall pay certain part of the premium, the employee shall be available at work for a defined number of hours per week, the employee has to abide by the waiting period before the benefits shall not effect, etc. Companies with large number of employees are most likely to offer employee medical indemnity hostile to companies with less employees. Small companies are less likely to provide health indemnity as fringe benefits due to high costs of underwriting and administration for small number of employees adding to heavy premiums. Also, since small firms make fewer profits, they lack resources to divert for employee indemnity schemes. Furthermore, companies who have low-wage workers, high employee turnover, no workers’ union and a huge number of part-time employees are less likely to provide medical indemnity. On the flip side, the stability of companionship sponsored indemnity system is supported by government as they receive tax subsidy that encourages the pooling of risk necessary for successful functioning of indemnity.

While most of the U.S. citizens are covered under companionship sponsored indemnity system (for families & their dependents), many of the rest are insured though public programs such as Medicaid & SCHIP (State Children’s Health Indemnity Curriculum) or through privately bought medical indemnity schemes.

In nutshell, while America’s companionship sponsored medical indemnity system continue to provide healthcare indemnity to a majority of U.S. citizens & their families, there is a significant number of Americans who lack coverage hostile to hefty medical and healthcare expenses.

Expat Global Medical is a leading expat health indemnity providing health indemnity for expatriate to travelers around the planet. We offer all kind of travel health indemnity services like medical evacuation indemnity, US health indemnity and much more.

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