Business owners can choose one of the three different small business health insurance plans. It is important to understand all of them to ensure what is the best small business health insurance plan to take for their employees. Check the explanation below.
Health Maintenance Organization (HMO)
The reason why HMO is one of their favorite and best health insurance plans for small business owners is that the premium is affordable. At the same time, they also get fair health coverage. Best of all, the excluded costs they have to pay are also lower.
The thing you should note when choosing this insurance is the network. Your employees can only claim the insurance in a specific network. In case they use services and facilities outside the network, they have to pay additional costs.
It is not a big problem because each location has a few providers that join the HMO network. So, check the HMO providers in your location first before taking this health insurance.
Also Read : Group Health Insurance For Small Business
Preferred Provider Organization (PPO)
It is also one of the recommended small business health insurance plans for employees. The main reason is because of the large network. The network of this option is even larger than the HMO network. As a result, this insurance plan offers better flexibility.
The members even don’t have to choose the Primary Care Physician and referral to see a specialist. It means that your employees can choose any doctor and hospital as long as they are in the network. Just like other small business health insurance plans, the employees should pay the costs by themselves if they choose doctors and hospitals out of the network. The drawback is that the premium of this plan is more costly than HMO.
Also Read : Health Insurance for Employees Small Business
Point of Service Plan (POS)
Do you want to get the benefits of HMO and PPO? If so, the Point of Service Plan is an insurance plan you are looking for. The small business health insurance premiums of this plan are not as expensive as HMO and PPO plans.
The requirements are also the combination of the two insurance plans above. For instance, your employees should select a Primary Care Physician. On the other hand, they don’t need a referral only to get a specialist.
The drawback of this insurance plan is the limited network. The network is not as large as HMO and PPO plans.
The information above gives you more than just what is small business health insurance for employees. It also offers options for small business owners who are about to buy small business medical insurance plans for their employees.