Finding the best health insurance plan for your business can feel daunting. Navigating regulations and paperwork is time-consuming enough, so the thought of requiring every employee to fill out a lengthy questionnaire about their personal health might feel impossible.
Is a health questionnaire really necessary?
Not always. We’ll explain!
Having more detailed medical information about your employees may be the key to securing better rates for your company’s health insurance. We say may, because it depends on who’s asking and the type of insurance policy!
That’s why insurance brokers like our team at Advanced Benefit Solutions take the time to get to know our clients – it matters when it comes to group health overall costs.
So what’s the difference between a census and a health questionnaire? We’re so glad you want to know!
Census Vs. Health Questionnaire
In this discussion we must set the stage. What determines health plan rates? In the world of insurance, an insurance carrier is trying to anticipate how much healthcare your group is going to need. More claims? Expect a higher price.
Both a census and a health questionnaire provide information insurance companies may use to establish premiums. They calculate these premiums based on the anticipated claims of your group.
An insurance carrier will take the data they receive and project the amount of money needed to pay claims. Having accurate information from as many employees as possible is crucial for this process.
What is a Census?
A census provides basic info such as:
- Number of full-time employees
- Employee name
- Birthday
- Gender
- Dependent Name, Birthdate, and gender for those also wanting insurance
- Zip code of Residence
Once collected, the insurance company takes the data and determines the premium rates based on the information provided.
What is a Health Questionnaire?
Sometimes an employer would like to provide a health plan that requires medical information to be provided to the insurance company. Depending on the insurance company requirements, a health questionnaire may be required and it asks for more information from the employee. The health questionnaire paints a well-rounded picture of the employee’s health.
The questionnaire may ask for:
- Medical history for the last 5 years
- Any recent doctor visits
- Any recent ER / hospital stays / surgeries
- Medications, including dosage and frequency
If a health questionnaire is required, the information should be kept confidential and submitted directly by the employee to Advanced Benefit Solutions. It should not be given to the employer.
Health questionnaires also ask for recent hospitalization and doctor visits so they can factor in any ongoing conditions. Large premium increases are often caused by expensive medical conditions from the previous year that weren’t taken into account at the time of setting the insurance premium.
Therefore, if an insurance broker doesn’t request a health questionnaire when one is required, there is no way for them to know and account for that data in their initial rate calculation.
Knowledge Is Power
Insurance carriers rely on accurate information to deliver accurate quotes. Health insurance premiums are determined by the anticipated claims of your group; therefore, the more information provided, the better. The information taken by a census is helpful and may be all that is required, but sometimes more detail is necessary.
When employers shop for health insurance, the information they provide is key in getting a complete picture of their health insurance needs. The information gathered by the health questionnaire may help ensure a sustainable premium rate and assist employers at the time of renewal because they’ll know what to expect, enabling them to plan accordingly.
Avoid Surprises and Shocking Rate Increases
We don’t want companies to end up with a plan they can’t afford after a year because of uncalculated health conditions (or worse, struggle to find a carrier who will insure their group)!
This is one of the reasons it’s important to have client-centric insurance brokers, like our team at Advanced Benefit Solutions, with our 15+ years of experience. We understand the importance of educating employees about health insurance.
Is A Census Ever the Way To Go?
In some cases, a census may be all that is required and a trusted insurance broker like ABS can help determine which option is best for your company’s needs.
Employee Participation
Often the biggest obstacle is a lack of employee understanding about benefits! If employees don’t understand their healthcare plan, they won’t use it. They also might drive up claims and costs by not taking advantage of in-network providers or telehealth options that keep plan costs low.
Give your employees opportunities to ask questions electronically or in person and inform them on how they can take advantage of their benefits.
Streamline Your Benefits With ABS
We understand the nuances of the healthcare insurance industry and value small, family-run businesses.
We know supporting your employees with a healthcare plan that works for them is important to you, and critical for your success. We can help you create a benefit program designed to work for both you and your employees.
Give us call today at (512) 291-9300 or contact us to see how we can help.
