Familiarize Yourself with Different Health Compensation Plans for Workers

If you have recently got a job offer, it is important to know about different types of Florida workers compensation plans before joining the company. You should also have a good hang of difference between these schemes. There are two types of health coverage for the workers – Health Insurance and Workers’ Compensation Insurance.

Though the differences between the two types are quite clear, still it creates confusion for the workers as to where a particular coverage starts and another ends. The small fishes in the corporate world face more problems as they often get confused to decide –

  • If they will provide health insurance, especially the social security disability benefits to their employees
  • If they require, as a sovereign contractor, Health Insurance and Workers’ Compensation Insurance

This article discusses each situation with a special focus on disability insurance claims. Let us first shoot a glance at the differences between Workers’ Compensation Insurance and Health Insurance.

Workers’ Compensation Insurance: This kind covers injuries at the workplaces as well as illnesses. This state-regulated scheme usually requires the employers to carry the coverage.

Health Insurance: Health insurance encourages both long-term and short term disability insurance claims. It is designed to provide coverage for medical bills and preventive care. it helps employees clear their medical bills for injuries or illness not related to work. From 2014, the Americans are now required to carry such coverage. Though such coverage is offered by the employers as a part of benefit package for the employees, an individual worker is allowed to buy a plan as per his/her own requirements.

Disability insurance is a different kind of health insurance and designed to compensate a worker for his/her wage loss when the person, in question, is not able to perform duties. In most of the USA states, it is must for the employers to provide temporary and/or long-term Disability Insurance schemes to their employees. However, in some states (for example, California), there is a mandatory disability coverage provided to all employees who qualify for the program. Disability Insurance is not related to workplace injuries and meant to compensate the employees for their lost wages.

From the brief introduction of these different types of employees’ insurance coverage, it is easily understood that Workers’ Compensation Insurance is classified under ‘mandatory’ category whereas Disability Insurance is of ‘optional’ type. If an employer is running a business where disability program is mandatory, the person is not required to pay for it on behalf of employees unless he intends so. Employers’ contribution to the social disability program is tax deductible if their employees are not ready to pay for it.

Here Are More You Should Know

Without a few exceptions, Workers’ Compensation laws exempt the independent business owners, freelancer or the contractors with no employees from paying for WC plans.

Another justifiable concern for the employees is most Health Insurance schemes are not related to occupational injuries. It is definitely a grey area that you must discuss with your health insurer. Some policies also have a clear mention that the coverage is not provided if WC scheme pays for the illness or injury.

May Capobianco