People that work for small businesses or groups are regularly given multiple health insurance options by the business owner. The insurance covers pretty much everything, ranging from trips to the doctor to prescribed medications to hospital visits, and more.

To help companies make a decision as to what type of small business health plans fits best with the budget of their company, as well as the requirements of those that work for them, the below offers information in regards to the different plans types on the market.

Indemnity plans – These main insurance plans generally include a deductible. The provider of insurance will begin to pay the cost of coverage after the covered person has paid the deductible amount. Once the covered costs go beyond the deductible amount, medical bills are usually paid as a portion of the billed amount, generally around 80%. This type of coverage generally offer the best versatility in choosing where to get medical care.

HMO (Health Maintenance Organization plans – These main self employed insurance plans generally allows the insured individual to make a decision on a PCP (Primary Care Physician) from a network of providers. A primary care physician is in charge of handling the health care of the covered individual. If the covered individual requires treatment from any out-of-network provider, they usually need to get a referral from their PCP.

The person insured should receive treatment from a doctor in the network in order to get paid by the HMO.

Preferred Provider Organization (PPO) plan – This plan is when the insurance provider makes an agreement with specific physicians and medical facilities to provide services at reduced prices. If you are a PPO member, you can receive medical treatment from a facility or doctor who is not from your network, but a copayment, or larger deductible, will be required.

Point of Service (POS) plan – This plan gives a combination of HMO and PPO, yet is more flexible than a HMO, but does need you to decide on a primary care doctor. Similar to PPO, you can get medical service from a facility or physician outside of your network, but you need to pay more for this privilege. Then again, if a primary care doctor gives you a referral, POS will pay the cost.

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