Your guide to small business health insurance

Health insurance coverage is not cheap and for most companies it is one of the largest expenses that is on their cash flow sheet. However if you do not have health insurance to offer your employees, you are not going to attract some of the right talent to the company. Many employees want the benefit programs and they will look for companies that offer health insurance and other benefits.

The problem is that no matter how large or small your business is, you will end up paying a lot of money for health insurance coverage. The large corporations often create their own companies or can get amazing rates because of the large number of employees that will participate in the program. The smaller companies are not as fortunate and they don't have the ability to try and get discounts. Many of them end up fighting for lower rates year after year and this can be quite the frustrating challenge. To understand what your options are, this article will help you understand the difference between HMOs, PPOs, and POSs. This way you will be educated on which plan works the best for your staff.

• Health Maintenance Organization - HMO


• Preferred Provider Organization - PPO


• Point of Service Plan - POS

It is important to look at the cost and benefit of the different plans that are out there. HMO plans are not nearly as flexible as other plans that are out there because they ask your staff to choose a provider from a list of approved physicians. This can make it challenging for employees that have already been receiving treatment from a physician only to learn he or she will not be on the list when you change health insurance plans.

A lot of people like the PPO plan because you can choose any provider you want but you do need to pay a higher deductible in order to do so. Then the POS plan is a combination of the HMO and PPO plans as you can choose a primary care physician from a list of the approved ones but you can keep seeing yours so long as you are willing to pay a higher fee to do so.

Look at all of your options and know exactly what you are getting yourself into. It is important that you understand what your employees needs are when you are seeking out a new health insurance plan. How about looking into a Health Savings Account? An HSA is a great option as you are able to keep your insurance costs lower and you can offer pre-tax contributions to the account for your employees. Employees also make contributions and then they have a higher deductible plan but they still can use the same doctors that they want. The money that they contribute can be rolled over to the next year if they do not use it all.

Work with a good insurance broker in order to help you make the best decisions for your staff. They will be able to advise you on the best insurance plans that are available and they can really make a tough decision easier. You do need to understand the costs that you are dealing with and to know your staff as well. It might be a good idea to switch to the higher deductible plan if you are willing to give your employees something extra like an HSA account or even a Flex spending account. Some employers will also consider expanding their coverage and adding dental benefits and vision care as well since it will be able to help you retain your employees.