The Best Health Insurance for Small Business

During harsh economic times, one of the first things that small businesses cut or eliminate to stay alive is health insurance.  This is a necessary step for many small businesses, but thankfully more affordable health care choices exist than just a few years ago. It is not necessary for business owners to go without health insurance.

• Group Health Insurance: In this type of health plan, the employer and employees share the cost. In most cases, the coverage can also extend to an employee’s dependents too. An employer typically pays out 50 percent of an employee’s premium. Many businesses love this type of plan, because they receive tax incentives for being enrolled in it.


• Preferred Provider Organization (PPO): With this type of plan, an employee who wants to see a doctor must get treated by a doctor within the PPO network. If people visit doctors out of the network, they risk not having their claim paid or being responsible for paying the expense themselves.


• Health Maintenance Organization (HMO): Individuals who choose this type of plan must pick their own doctor or primary care physician, who will refer them to specialists on an as-needed basis. If people choose an HMO plan and get treatment by physicians out of their network, they risk not being covered. However, exceptions are sometimes made in emergency cases.


• Health Savings Account Plan (HSA): With an HSA plan, individuals have the option of paying a low monthly premium, but the catch is they will have to pay a higher deductible when they need treatment. To pay for the deductible, individuals open health savings accounts and are able to save money, pre-tax, that will be used when they need treatment. If an individual does not use the money in the account, it continues to “roll over” and gain interest, like an IRA. These accounts also enable individuals to earn tax write offs at the end of the year, as well.


• Indemnity Plans: These plans are often chosen by people who want the most freedom and flexibility in their medical care. With an indemnity plan, and individual can visit any doctor or hospital that they want and the insurer pays a set portion of the expense.