Types of small business health insurance plans

May 23, 2009

Various health insurance options exist to the company owners, for employees of small groups or organizations. Practically every thing is covered by the insurance, including visits to the doctor, hospital visits and even the prescribed medications. The following options are available to owners of small businesses:

Indemnity plan

These normally include a deductible portion meaning the insurance company starts to pay the benefits after the person insured has paid the amount. The covered expenses have to go beyond the deducible amount for benefits to be paid as a fraction of the actual expenditure, usually 80%.

Health maintenance organization plans

These allow the insured persons to decide on primary care physician from a network of providers. For any treatment from an out-of –network provider requires the person to obtain a referral from their primary care physicians.

Preferred provider organization

Insurance provider makes agreement with chose doctors and hospitals in order to provide discounted priced services.

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