Small Business Health Insurance Types

People that work for small companies or non-profits are normally offered various health coverage options by the company they work for. The insurance covers pretty much everything, ranging from trips to the physician to prescribed medications to hospital visits, etc.

To assist owners of small business decide on what kind of small business health plan fits best with the budget of their company and the needs of those that work for them, the following is guidance relating to the different plans types on the market.

Indemnity plans – These main medical plans usually include a deductible. The provider of insurance will begin to pay the benefits after the deductible has been met. Once the covered costs go past the deductible amount, benefits are often paid as a portion of the billed amount, which is usually 80%. This type of coverage typically offer the greatest flexibility in selecting where to go for health care.

HMO (Health Maintenance Organization plans – These main health insurance for self employed plans generally allows the insured individual to choose on a PCP (Primary Care Physician) from a directory of network authorized providers. A primary care physician is the one that handles the health care of the insured individual. If the covered individual requires special care from a provider not in the network, they need to get a referral directly from their primary care physician.

The person insured should get treatment from a network provider so as to receive payment from the HMO.

PPO, or Preferred Provider Organization plan – This type of coverage is characterized by the insurance company making a contract with specific doctors and medical facilities to offer treatment at reduced prices. If you are a PPO member, you can get medical care from a hospital or physician outside of the network, but you most likely will have a co-payment or larger deductible amount.

Point of Service (POS) plan – This plan gives a blend of a PPO and a HMO, yet is more flexible than a HMO, but does need you to choose a primary care doctor. Similar to PPO, you can receive medical service from a facility or physician outside of your network, but you need to pay more for this privilege. Then again, if a primary care physician gives you a referral, POS will pay the cost.