Health Service Agreement

What Does Health Service Agreement Mean?

A health services agreement is a contract between an employer and a health insurance company. It outlines the details of the health insurance plan that the employer will purchase from the insurer to provide coverage for eligible employees.

Insuranceopedia Explains Health Service Agreement

A health services agreement typically includes details such as enrollment, eligibility, and benefits. Group health coverage often sits alongside other employer-purchased policies like workers’ compensation as part of a wider benefits and risk plan. Companies often prioritize obtaining a good health insurance plan, as it helps attract prospective employees. As a result, ensuring that the health services agreement includes strong benefits is considered crucial for many employers. Employers comparing what to offer can review the broader types of business insurance available to see how a group health plan fits with other coverages they may need. A health plan with inadequate benefits can deter employees, which is highly undesirable for companies seeking to offer competitive health plans.