Small Business Medical Plans - Your Choices
Employees of small businesses or groups are normally given multiple health coverage choices by the company owner. The insurance covers just about everything, ranging from visits to the doctor to prescribed medications to hospital visits, and more.
To assist companies make a decision as to what kind of small business health coverage fits best with the company budget, as well as the requirements of those that work for them, the below offers guidance in regards to the various plans types on the market.
Indemnity plans - This type of health plans normally include a deductible. The provider of insurance will begin to pay the cost of coverage after the covered person has met the amount of the deductible. Once the medical costs go beyond the amount of the deductible, benefits are often paid as a fraction of the actual expenditures, generally around 80%. This type of coverage typically offer the greatest flexibility in selecting where to get medical care.
Health Maintenance Organization (HMO) plans - This type of health insurance for the self employed plans usually allows the covered individual to decide on a Primary Care Physician, or PCP, from a network of authorized providers. The primary care physician is in charge of handling the medical care of the insured individual. If the covered person requires special care from a provider not in the network, they usually need to get a referral directly from their PCP.
The person insured should obtain treatment from a network provider so as to get paid by the HMO.
PPO, or Preferred Provider Organization plan - This type of coverage is when the insurance company makes a contract with chosen doctors and hospitals to provide services at reduced prices. As a member of a PPO, you can receive health treatment from a facility or doctor outside of your network, but a copayment, or larger deductible, will be required.
Point of Service (POS) plan - This plan is a combination of HMO and PPO, only this one is more flexible than a HMO, but does need you to pick a primary care doctor. Much like a PPO, you can seek medical service from a facility or doctor not belonging to the network, but you need to pay more of what the actual cost is. Then again, if your primary physician gives you a referral, the cost should be covered.
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