Kinds of Health Insurance Coverage for Small Business

Friday, May 1st, 2009

Small businesses usually offer a number of various types of health insurance. Leading medical plans normally cover a complete selection of health care essentials, together with hospital care, prescription medicines and doctor visits.

To assist owners of small business decide on what type of health insurance best matches the budget of their company and the needs of their employees, the below offers information about the various types of plans.

Indemnity Plan – This type of medical plan usually has a deductible, an amount that you paid before an insurance provider starts paying the benefits. If the covered expenditures exceeded the amount that is deductible, benefits are typically compensated as a portion of actual cost, usually 80%. This plan regularly gives flexibility in terms of selecting where to obtain medical attention.

Health Maintenance Organization (HMO) plans – These main medical plans typically allow the insured person to decide on a PCP (Primary Care Physician) from a directory of network providers. A PCP is in charge of handling the health care of the insured person. If he/she requires treatment from any out-of-network provider, they need to obtain a referral from their PCP.

The person insured should obtain treatment from a network provider so as to get paid via the HMO.

Preferred Provider Organization (PPO) plan – This plan is when the insurance provider makes an agreement with chosen doctors and hospitals to provide services at discounted price. If you are a PPO member, you can seek medical care from a hospital or physician who is not from the network, but you are most likely to compensate a co-payment or larger deductible amount.

Point of Service (POS) plan – This plan is a combination of HMO and PPO, only this one is more adaptable than HMO, but does need you to choose a primary care physician. Similar to PPO, you can seek medical attention from a hospital or physician not belonging to the network, but you need to pay more of what the actual cost is. Then again, if a primary care physician recommends you, POS will compensate the cost.

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Health Reform Popular in Poll

Thursday, April 30th, 2009

There are specific polls addressing health care and health insurance done by the Kaiser Family Foundation every month. These polls offer results that are interesting, it gives an inside look at the way the American citizens are leaning in their opinion about the health industry.

This April poll was reported by Medical News Today, some of the results are: 59% say the health care reform is becoming more important now, 36% avoided regular office visits to doctors or dentists due to high costs, 26% had an individual within their home who struggled with health care bills this past year, 71% would be OK with having taxes raised on high income American to help pay for health care reform, 67% strongly or somewhat favor some type of national health insurance plan to provide competition with private plans.

This appears to indicate that the opinion of the citizens is shifting toward more intense movement on health care reform now. And many more Americans are suffering under the burden of cost increases in health care.

The political process is thrilled to see these results as it helps them in their goal for health care reform. With the majority seemingly on their side, according to the Kaiser poll, there’s a possibility for history making legislation regarding a far reaching health care reform.

However, these polls can change in the moments. The public is expressing themselves this way at this moment, but with the current economic crisis, opinions can vary depending on events. And the Democrats and Republicans have a ways to go in agreeing on how to resolve the health care dilemma.

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Small Business Health Insurance: a Wise Investment

Wednesday, March 19th, 2008
Jenny Black asked:

Small business health insurance is one of the benefits that you intend to provide to your small group of employees. Apart from wages many companies provide benefits like paid vacation, maternity benefits, etc to retain the employees in their organization. Small business health insurance is an added assistance to all these benefits.

A small business organization generally comprises of 2 to 50 employees. Each employee is very vital to the organization. If, even a single employee falls ill, the whole organization will become dysfunctional. Therefore ensuring a good health of the employees is one of the most essential responsibilities of the employer who owns a small business organization.

With the advancement of science and technology, the costs of medical benefits are also on a rise. This is a major reason which prevents people from going to a doctor for any health problems. It should be kept in mind that if an illness is not taken care of at the initial stage it may lead to many complications at a later stage. By providing an appropriate health insurance policy for all the employees through group health insurance, an employer can free his employees from all the health related problems.

Most small business owners provide small business health insurance through group plans which use organized medical networks. There are several types of networks: HMOs, PPOs etc. You should know about all of them because each will be having different characteristics that will affect your choices or the types of insurance you want for your small business organization.

In HMO or Health Maintenance Organization, the medical needs of the people who subscribe are provided by a managed system of medical care. On the other hand, physicians, health care providers of all types, hospitals and clinics sign contracts with the PPO (Preferred Provider Organization) system to provide care to its insured people. HMOs often have lower premiums but they must be available in close proximity to your employees and the workplace. PPOs and POSs tend to cost slightly more but are flexible for your employees.

These all things should be made clear before purchasing any small business health insurance. Apart from that through small business health insurance you can also get insurance quotes for yourself and your family members. This can be availed by paying a very cheaper rate of insurance. Tax incentives are also available with the purchase of small business health insurance. In this way you can save a few pounds for yourself.

You should carefully do a study of the quotes as provided by different providers. The pros and cons of almost all the details available need to be addressed. An exhaustive comparison of the different insurance companies and their rates of premiums should also be done by you. This is much easier now with the internet that provides almost all the information that you will need in the process of purchasing a small business health insurance.

Submitted by Yadira

2 Steps to Small Business Health Insurance Plans

Saturday, March 8th, 2008
Jack Adams asked:


For small businesses, group health insurance covers are the most appropriate option. The group health plans are suitable for organizations that employ from 2 to 50 people. Due to the rising costs of health care in the US, group health plans have become essential.

This rise in healthcare costs creates a challenge for small businesses that need to provide health insurance is affordable to their employees. By offering an attractive health insurance benefit you will not only attract new talent, but will ensure that you retain the existing.

Options of Group Insurance Plans:

Diversifying the financial risk amongst the members, is the objective of the group health plans. This results in premiums for members of the group that are below those of individual plans for the same cover. The factors that determine the premiums are health status, occupational hazards, age and many more to a lesser extent.

There will be variations from state to state and service provider to another. The basic cover is generally the same for everyone, but for a slightly higher premium you may improve your cover by negotiated add-ons.

These health insurance policies for small businesses are available under many programs, like, fee-for-service, HMO, POS and PPO. The popularity of managed care plans over the group indemnity plans is the affordability of the premiums.

Designing Your Health Plan:

Ensure that you a very clear objective when you decide to get a health insurance package for your small business. Do a lot of research to ensure that the health insurance plan you select will meet both the requirements of the employees and that of the business.

You will need to provide the insurance service provider with the type of service required and the health and age profiles of the members. The exactness of the information will provide the service provider will decide the accuracy of quotes. The quotes provided will enable you to choose the payment options and the type of policy required. The employer meets from 25% to 50% of the premiums of each employee.

You may want to cover the spouses and children of the employees as well in which case you will be meeting part of the premiums although this is not a legal requirement.

Due to the publicity and bad publicity against managed healthcare, increasing cost of medication and an aging population has resulted in premiums rising sharply. Despite this diligent research can locate companies who have affordable plans. You manage to get good service providers through the chamber of commerce in your locale.

The small business health insurance plans lower the cost of healthcare to each individual in the group by spreading the risk. And affords employees an opportunity of getting better coverage. The health plans are now an critical to your business. Get for your business and employees an health plan that suits your needs.

Submitted by Regan