1 mins readHealth Insurance refers to plans that pay or reimburse all or part of medical expenses. Employers commonly offer it as part of a benefits package. Plan features include premiums, deductibles, networks and covered services.
What is Health Insurance?
It is a contract between an insurer and the policyholder that reduces the financial risk of healthcare. Employer plans may be fully funded or self funded and can include HMOs, PPOs and high deductible options paired with health savings accounts.
How does it work?
Employees enroll during hiring or open enrollment. Employers and employees share premiums through payroll deductions. Claims are submitted to insurers for payment and HR tracks eligibility, enrolment, and vendor interactions.
Practical usage in HR
HR teams manage plan selection, vendor relationships, communications and compliance. Benefits, payroll and legal teams coordinate to administer coverage and reporting.
- Include plan summaries in offer letters and benefits packets
- Run open enrolment campaigns and enrollment support
- Set up payroll deductions and employer contributions
- Manage COBRA, ACA reporting and eligibility audits
Related HR concepts
Closely related terms include employee benefits, benefits administration, open enrollment, COBRA, premiums, HSA, FSA, total rewards and benefits compliance.