Small Business Health Insurance Plans - How to Get the Best Rates

by Brian Stevens
Looking for a small business health insurance plan that won't cost you an arm and a leg? Here's how to get the best rate with a reputable company.

Small Business Health Insurance

If you own a small business with 2 to 50 employees you qualify for a group health insurance plan. Group health insurance will cost you and your employees much less than individual health insurance, plus contributions to your small business health insurance plan are tax deductible.

Group health insurance rates are calculated on an overall rate for group members who may customize or add additional coverage to meet their needs.

There are two types of health insurance plans that are currently available to small businesses - indemnity plans, also known as fee-for-service plans, and managed health care plans - HMOs, PPOs, and POSs.

Small Business Health Insurance Plans

Indemnity plans - These plans let you choose your own doctors and hospitals. There's a $500 to $1,500 deductible you must pay before your insurer will pay your claims, and you usually have to pay 20% of the total amount of any individual claims. They cost more than HMOs, PPOs, and POSs, and involve a lot more paperwork.

HMOs - These plans provide you with a network of physicians and hospitals you must use when you're injured or ill, and you pay a $5 to $10 co-payment for each doctor visit. These plans are the most restrictive but the least expensive health care plans.

PPOs - These plans also provide you with a network of physicians and hospitals you must use. You can visit out-of-network physicians by paying for the visit and submitting a receipt to receive partial reimbursement, and copays are usually $5 to $10 per visit. These plans cost a little more than HMOs.

POSs - These plans are a combination of HMOs and PPOs. If you're referred to a non-network physician by your network primary care physician your fees will be paid, and copays are the same as for PPOs. These plans cost slightly more than PPOs.

Get the Best Rates on Small Business Health Insurance

To get the best rate on small business health insurance, visit an insurance comparison website where you can get quotes from a number of health insurance companies. At the better sites you can also get answers to your health insurance questions, such as which plan would be best for your group, from insurance professionals.

LowerRateQuotes.com/health-insurance.html