Types Of Small Business Medical InsuranceThere are different types of small business medical insurance and each one has specific benefits to fit the needs of every business. Availing of medical insurance for small business need not be expensive for the employees provided the company negotiates with the insurance company for a lower premium. Small business medical insurance does not only protect the business owner but the employees and their dependents as well. There are various types of medical insurance for small business to suit the needs and budget of every business such as:
- FFS or Fee for service - better and wider choice of health care providers but comes at a more expensive premium. - PPO or Preferred Maintenance Organization - while this type encourages the services of health care providers within the insurance network, the insured can still avail of the services of doctors not included in the network but with lower coverage. - POS or Point of Service - Combines the features of both HMO and PPO - HMO or Health Maintenance Organization - includes a wide coverage for preventive healthcare although the insured gets a limited choice of health providers. The first type of small business medical insurance belongs to the indemnity plan category which used to be favored by the US insurance market. However, the American insurance market is veering towards managed care plans (to which PPO, POS and HMO belongs) due to the cost difference. True enough, an FFS small business insurance coverage would mean more and better choices when it comes to doctors and hospitals but it is more expensive. Even the United States presents a very competitive work environment and while there are millions of people who compose the workforce, there are but a few really qualified to take certain posts. A company that wants to get the best workers for his business needs to do more than offer high salaries as the other companies can outbid him in this game. One of the best benefits a business can offer in order to get the best and the brightest is small business medical insurance. Employees are already aware that they do not just need to work hard for their monthly paychecks but they also need to make sure that their future is insured. A smaller firm (which may have from two employees up) that could not give very high salaries can still get qualified employees by offering them small business medical insurance. The firm can get cheaper medical insurance by negotiating for a group health insurance for the employees. An ideal medical insurance coverage should not only include regular medical examinations but coverage for future illness, prescriptions or injury that the employee may sustain. To qualify for group medical insurance, a small business has to meet the following requirements: - Business Legitimacy - Business License - Articles of Incorporation if the business is a corporation - Minimum number of employees as required by insurance companies The provision of small business medical insurance for employees do not require additional costs to the company except perhaps if it offers to share in their healthcare costs. Aside from making medical insurance more affordable for the employees, the business also gets tax incentives and payroll tax reduction in specific cases. |