Health Insurance for Small Businesses – The Different Types
Those that work for small businesses or groups are usually given multiple medical coverage choices by the company they work for. The insurance covers just about everything, ranging from trips to the physician to prescriptions to emergency room trips, and more.
To help owners of small business decide on which kind of small business health plan fits best with the company budget, as well as the needs of their employees, the following is information relating to the different plans types available.
Indemnity plans – These main insurance plans usually include a deductible. The insurance company will start to pay the benefits after the deductible has been met. After the covered expenses go beyond the amount of the deductible, medical bills are often paid as a portion of the billed amount, generally around 80%. This type of coverage generally offer the most versatility in choosing where to get health care.
Health Maintenance Organization (HMO) plans – These main health insurance for self employed plans generally allows the covered individual to decide on a Primary Care Physician, or PCP, from a directory of network providers. A PCP is the one that handles the medical care of person covered. If he/she requires treatment from any out-of-network provider, they need to obtain a referral from their primary care physician.
The insured individual should receive treatment from a network provider in order to receive payment from the HMO.
Preferred Provider Organization (PPO) plan – This plan is characterized by the insurance company making an agreement with chosen physicians and hospitals to provide treatment at reduced prices. As a member of a PPO, you can seek medical treatment from a hospital or doctor who is not from the network, but you are most likely to have a co-payment or larger deductible amount.
POS, or Point of Service plan – This coverage gives a blend of HMO and PPO, only this one is more adaptable than HMO plans, but you still need to decide on a primary care doctor. Much like a PPO, you can receive medical service from a facility or physician not belonging to the network, but you need to pay more for this privilege. Then again, if a primary care doctor gives you a referral, the cost should be covered.
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