Business Health Insurance Options
There are many business insurance options to fully cover a company
, including everything from liability to auto coverage for company cars and health insurance for employees. Health insurance for employees is one option that every owner should consider. The US Department of Health and Human Services cites that roughly two thirds of all employers offer health insurance to their employees. This type of business insurance will help make companies more competitive as well as satisfying basic needs for their employees.As brief overview to the types of business insurance for healthcare coverage available, let's take a look at the four most popular options.
HMOs
HMOs are organizations that utilize a network of care providers that works through a primary care physician. The entire network, including doctors, hospitals, and other care providers, uses an economy of scale in order to provide services at a lower rate to the insured. This is a good option for providing health insurance at an economical price. For workers, they will need to go through their primary care physician as their initial healthcare provider who will then refer them to specialists who can be in or out of network. Otherwise, besides specialists, the total care options are limited to in-network hospitals and doctors.
PPOs
PPOs are similar to HMOs, but are typically more restricted in the choice of care options. A primary care physician is still the initial caregiver. Employees are then limited to strictly in-network services with no coverage offered for out-of-network services or specialists. The size of the network is often smaller and allows for a further reduction of premiums. These plans operate best in metropolitan areas with high quality care facilities where the limited choice of providers is not an issue. PPOs are highly cost effective for smaller companies in large cities who can still cover their workers without sacrificing the quality of that care.
Traditional and Indemnity Insurance
Traditional indemnity policies follow the standard practice of charging a premium to customers and then the insurer reimburses the cost of services provided with little or no restriction on where the services are obtained. While this was the majority of business insurance policies around thirty years ago, today their high costs have limited these policies to extremely big companies. However, these policies are highly coveted and can be an excellent way to solicit top tier talent for critical positions.
Government Programs: Medicare and Medicaid
These government programs cover retirees and the very poor or disabled. For employees older than 65 or ones that still qualify for Medicaid, supplemental insurance is often needed. Competitive employers should not be solely relying on government programs to provide for their workers. Providing extra business insurance options for these workers will go a long way to keeping workers happy and healthy along with high employee retention.
While these four basic types cover the majority of coverage options, many employers utilize combinations or variations of the above. These four options form the basis from which an employer can evaluate their situation and needs and shop for the right policy.
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