Small Business Health Insurance – Small businesses can be the most important asset to their families and this is why Small Business Health Insurance is so important. In today's uncertain economic times, many people are finding it more difficult to make ends meet. Small business health insurance is a very viable option for protecting your business and your employees. The costs associated with large medical benefits can often cripple smaller companies financially. When considering Small Business Health Insurance, there are three main types to consider. Each type has different ways of covering benefits, but each also has its drawbacks.
Managed care plans are usually managed by an organization such as a hospital or other group company that pays the benefits. The plan will usually cover your staff except for those that are in direct clinical care. Some managed care plans also cover your spouses and children, which may be beneficial depending on the plan. If you choose a plan that covers just your staff, you run the risk of having unpaid bills if something happened to one of your staff members.
HMO or Health Maintenance Organizations may seem similar to MCO's, but they have many differences. Coverage is usually restricted to a point of time with an annual deductible. You must choose a physician and choose a medical care plan. A lot of people like this plan because there is little or no paperwork, but it has its drawbacks.
PPO or Preferred Provider Organizations offer a plan that caters to small business owners. This plan requires a referral from your primary doctor. The doctor gives you a list of physicians he believes could provide the services you need. The primary physician is likely to be a member of the plan so you are usually able to see him right away. You may be subject to a waiting period before you receive the care you require.
POS plans have become increasingly popular. They are becoming more popular because they do not have as many restrictions as traditional HMO's or PPO's. You can select a physician you want coverage for and choose the physician and hospital that work with your payment method. This plan often allows you to see the doctor of your choice at your convenience and you are under no obligation to continue with any services provided by the doctors and hospitals covered by the plan.
There are different types of small business insurance. Some companies offer only professional liability insurance while others include all medical expenses and other benefits in their small business plans. You need to check with your accountant or small business lawyer to determine what type of plan would best meet your needs.
Many companies offer coverage for malpractice. Malpractice may include an injury caused by negligence or substandard medical practice. You may also want to find out if your business has any laws against workplace violence or sexual harassment. These are typical aspects of coverage, you should research before you buy any policies.
If you have employees, the company may have various policies regarding time off taken and vacation time. You may want to investigate how much time is available for vacation and how much you are required to . . . . . . spend working. If there are benefits provided for retirement you should inquire about the cost and the details of these policies.
Before you sign up for any coverage it is a good idea to read the policy. Be sure that the company will pay for any claims made against them. Also, make sure that you understand how the plans work. Find out if the policies provide for payment of a percentage of the total cost or if they provide a lump sum payment.
Many people who have small businesses choose to obtain short-term policies. These are generally inexpensive and can meet your needs until your business grows. These types of plans are sometimes called transition policies. They can cover you during times when you experience a temporary dip in your sales. The coverage may be lowered in instances where the company experiences financial difficulties or if it is unsure what will happen in the future.
If you are going to get small business insurance it pays to do some research first. You should compare the price of several policies before signing on the dotted line. This way you will be able to find the best policy for the lowest price.