What is Small Business Health Insurance?
Small Business Health Insurance
Small business health insurance offers coverage for the employees of businesses with more than two but less than 50 people on their payroll. One of the benefits of small business health insurance is that it offers lower premiums than traditional insurance, while still providing comprehensive coverage. The cost is based largely on how many employees enroll in the group plan.
Companies who employ a larger number of people will end up paying quite a bit less because more people will be covered. On the other hand, companies who have a smaller number of people covered in their small business health insurance plans will find that they have larger premiums each month.
Services Offered by Small Business Health Insurance
The specific medical services covered by your small business health insurance policy is completely determined by which policy you choose. HMO (Health Maintenance Organization), is probably the most common type of managed care; however, it is a type of health policy which restricts which doctors a patient can see. The PPO (Preferred Provider Organization) allows the employee more freedom to choose doctors, but overall, tends to be more expensive than HMO. Regardless of which type of policy you chose, small business health insurance policies typically cover most (but not all) of the following: routine medical visits, diagnostic care, hospital visits, emergency treatment, preventative care, home health care, and prescription costs.
Why Offer Small Business Health Insurance
Employers can file tax deductions for their small business health insurance coverage. Offering small business health insurance also provides employees with an incentive for choosing your company over one who does not offer small business health insurance.
With today’s volatile and competitive marketplace, it is important to attract and retain quality employees. Offering an attractive insurance package is a great way to make your company stand out from other potential employers. It will also help your employees afford costs associated with medical care, including routine physical exams, prescriptions, and unforeseen events such as illness and injury.
Who is Eligible for Small Business Health Insurance
Small business health insurance is regulated by state; but typically, companies employing between 2-50 employees are eligible.
Small business health insurance coverage is available virtually everywhere, but there are decent resources that you can use to find out more about individual state bylaws and a directory of insurance carriers offering coverage. Remember, it is important to weigh the pros and cons of each choice when selecting your small business health insurance.
While premiums can vary heavily among different carriers, you must realize that there can be drastic difference in the benefits your policy provides and the amount your employees are forced to pay out-of-pocket for services.
