Small Business Health Insurance Plan-How to Get the Best Rate.
Hi! My name is Bryan Stevens, I am a former insurance agent and a financial consultant and I am going to show you how to get the best rates on small business health insurance plans. If you own a small business with 2-50 employees you qualify for a group health insurance plan. Group health insurance will cost you and your employees much less than individual health insurance, plus contributions to your small business health insurance plan are tax deductible.
Group health insurance rates are calculated on an overall rate for group members who may customize or add additional coverage to meet their needs. There are two types of comprehensive health insurance plans that are currently available to small businesses - indemnity plans, also known as fee-for-service plans, and managed health care plans- HMOs, PPOs, and POSs.
Indeemnity Plans - Indemnity plans let you choose your own doctors and hospitals. There's a $500 to $1,500 deductible you must pay before your insurer will pay your claims, and you usually have to pay 20% of the total amount of any individual claims. They cost more than HMOs, PPOs, and POSs, and involve a lot more paperwork.
HMOs - HMOs are health maintenance organizations, provide you with a network of physicians and hospitals you must use when you're injured or ill, and you pay a $5 to $10 co-payment for each doctor visit. These plans are the most restrictive but the least expensive health care plans.
PPOs - PPOs are Preferred Provider Organization, also provide you with a network of physicians and hospitals. You can visit out-of-network physicians by paying for the visit and submitting a receipt to receive partial reimbursement, and copays are usually $5 to $10 per visit. These plans cost a little more than HMOs.
POSs - Finally, POSs are Point of Service plans or a combination of HMOs and PPOs. If you're referring to a non-network physician by your network, primary care physician your fees will be paid, and copays are the same as for PPOs. These plans cost significantly more than PPOs.
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