People that work for small businesses or non-profits are usually given various medical coverage options by the business owner. The insurance covers just about everything, from trips to the physician to prescribed medications to emergency room trips, etc.

To help small businesses decide on what kind of small business owner health insurance fits best with the company budget and the requirements of those that work for them, the following is information relating to the various types of plans available.

Indemnity plans – This type of health plans normally have a deductible. The provider of insurance will begin to pay the benefits after the covered individual has paid the amount of the deductible. Once the medical expenses go past the deductible amount, benefits are generally paid as a portion of the actual expenditures, generally around 80%. This type of coverage generally offer the most flexibility in selecting 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 Primary Care Physician, or PCP, from a directory of network providers. A primary care physician is in charge of handling the medical care of the insured person. If the covered individual is in need of treatment from a provider not in the network, they usually need to get a referral from their primary care physician.

The insured individual needs to receive treatment from a network provider in order to receive payment from the HMO.

Preferred Provider Organization (PPO) plan – This type of coverage is when the insurance provider makes an agreement with chosen doctors and medical facilities to give services at discounted prices. If you are a PPO member, you can seek medical treatment from a hospital or physician who is not from the network, but a copayment, or larger deductible, will be required.

Point of Service (POS) plan – This plan is a combination of HMO and PPO, only this one is more adaptable than HMO plans, but you still need to decide on a primary care doctor. Much like a PPO, you can seek medical attention from a hospital or physician outside of your network, but it is going to cost you more. However, if your primary physician gives you a referral, the cost should be covered.

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