| Among company benefits, more often than not | | | | coverage. An HMO uses a network of doctors, |
| employees rank health insurance as the more | | | | hospitals and health care facilities to keep health |
| important. It is estimated that more than 60% of | | | | care costs low. The person must choose a doctor |
| American who have health care receives it | | | | who then has to approve visits to other doctors |
| through some type of employer sponsored group | | | | and specialists. This is the least flexible of the |
| plan. While various state regulations differ, there | | | | plans, but the least expensive. |
| are certain benefits to having coverage through | | | | PPO |
| an employer. This makes the offering of health | | | | Preferred provider organizations (PPOs) have |
| care plans a strong bargaining tool. Many | | | | found their way to the top of the list as the |
| employees take a lower wage in order to get | | | | most popular choice for healthcare plans that are |
| good insurance. Small business owners are posed | | | | employee sponsored. More of a discount plan, a |
| with some challenges, however because the rising | | | | PPO has a network of doctors and hospitals that |
| costs of offering health care is making it | | | | provide health care at a reduced fee to PPO |
| increasingly difficult to give employees the level of | | | | members. While there is more flexibility with this |
| benefits that larger companies can offer. | | | | program, patients may find themselves making |
| Business owners can search for company health | | | | higher payments to doctors who are not in the |
| insurance by large, national organizations or by | | | | network. |
| state. By going state by state to find a company, | | | | POS |
| business owners may be able to save some | | | | Point of service (POS) plans, also known as open |
| money. An internet search can turn up dozens of | | | | ended HMOs, are a combination of an HMO and a |
| companies. They should type in the state, then | | | | PPO. Members have the option of selecting a |
| health insurance. California, for example, returns | | | | primary care physician but that physician can be in |
| literally dozens of companies that are specific to | | | | the network (for a lower price) or out of the |
| that state. | | | | network (for a higher price). |
| Types of Group Health Insurance | | | | It is important for companies to determine the |
| Traditional | | | | best type of plan to offer employees when it |
| This type of insurance is the most flexible. | | | | comes to health care plan. Small business owners |
| Traditional coverage, also known as indemnity | | | | should pay particularly close attention to the level |
| coverage, allows the person to see any doctor or | | | | of benefits they can offer as well as costs. |
| hospital of their choosing, see specialists without a | | | | Coverage costs can vary and a company's |
| referral and the insurance company is unable to | | | | employee base can fluctuate, change or grow. A |
| determine if a visit to a doctor or specialist is | | | | company based health plan must be able to keep |
| necessary or not. Unfortunately, this type of | | | | up with the changes. It is a good idea for |
| coverage is also the most expensive. Many | | | | companies, large or small, to reevaluate their |
| companies have opted to switch this type of plan | | | | employee benefits package, particularly health |
| for more affordable health care. Small business | | | | care plans, each year. It is important to |
| owners almost certainly have to opt for less | | | | employees and can be the difference between |
| expensive plans. | | | | attracting top notch employees who stay and |
| HMO | | | | mediocre employees who increase the turnover |
| Health maintenance organizations (HMOs) were | | | | rate. Employee health care is well worth the time |
| offered as the first alternatives to traditional | | | | and cost. |