By Erin Hunter
What is a small business health insurance?
While life insurance pays your family after your death, health insurance will help in covering the health or medical costs when you are living. Small business health insurance is the group health insurance option that every small business will offer their employees. These employees can enjoy discounted health coverage for various medical expenses along with some other benefits within the work environment. Since the provision of affordable health insurance to all the employees as a whole helps in the retention of them in the company, most of the SMBs are preferring to get a group insurance policy. There are several types of policies for small businesses. In this article, let us discuss the types of small business health insurance and the benefits of them.
Types of SMB health insurance
Based on various factors like the deductibles, freedom of doctor selection, coverage included, and many others, the health insurance plans are classified as follows.
Preferred Provider Organization (PMO) – In this type, you would have to pay a deductible every year before the plan starting to pay for your expenses. There will be a network of preferred hospitals and physicians. The employees will have to select any of these doctors to go for their medical needs. There will be a decrease in the charges if an employee goes under this plan. There will be no need for an employee to designate a primary care physician.
Health Maintenance Organization plan (HMO) – There will be a requirement for the employees to select a primary care physician who will guide them to a specific doctor or a hospital during medical needs. However, the options to choose a doctor within the network will be less. If anyone goes out of the network on any occasion, then the plan will not cover any expense.
Point of service health insurance plans – You can consider this as a combination of the PMO and HMO plans. Here, the employee can get full coverage when he follows the guidance of the PCP and goes for a doctor within the network and will get only limited coverage out of the network.
Exclusive Provider Organization (EPO) – It will resemble the HMO plan but they can choose an outsider service for lower coverage.
Indemnity health insurance plans – In this type, the employee will have complete freedom of choosing the service person. They have to pay at the moment and reimburse afterward from the plan.
Benefits of small business health insurance plans
For employees
- They will enjoy low premium health insurance benefits and a reduced charge for in-network doctor visits.
- There will be job satisfaction because the company is offering some kind of benefits to them.
- Employees can become healthier and work more actively.
For employers
- Enthusiastic employees will work with satisfaction, thus providing better productivity.
- They can reduce the federal business taxes by showing the expenses of insurance premiums.
- Higher employee retention is achievable and they will work for a long term.
