Under the Affordable Care Act, even small companies should be aware of their role in providing healthcare, including group health insurance plans for small businesses. Our clients at Canal HR have a choice of several plans, including HMO, PPO, and traditional plans. Is a group health insurance plan right for your small business? We can help you make this choice for you and your team.
A group health insurance plan provides employees with health insurance coverage through their employer, who pays a portion of the premium. Because group health insurance plans provide employees with equal major medical coverage through a single policy, the cost of these plans is generally lower than an individual health insurance policy. If you operate a business with fewer than 50 employees, a group health insurance plan can help you and your employees stay healthy while paying less for care.
Major medical health insurance is exactly what you think of when you hear “health insurance.” It generally covers serious illness and injury. To help you start thinking about group health insurance plans for your small business, we’ve outlined four major types of plans:
A Health Maintenance Organization is made up of multiple insurance providers that give members health insurance coverage for either a monthly or annual fee. With HMOs:
As a group health insurance plan for small businesses, HMOs are great for minimizing healthcare costs and incentivizing employees to seek out preventative care services, such as annual check-ups.
A Preferred Provider Organization is a health plan that holds contracts with individual medical service providers (like doctors and hospitals) to create a wide range of care options. With PPOs:
PPOs are a great group healthcare plan if your small business is willing to pay more for a wider variety of care options.
Unlike managed healthcare plans like HMOs and PPOs, traditional plans generally require members to pay for services on-the-spot and later submit the bill to their carrier for reimbursement. With traditional group healthcare plans:
If your small business wants a group healthcare plan where medical costs are fairly easy to predict, with a wide range of healthcare providers to choose from, a traditional group healthcare plan could meet your needs.
There are a number of great benefits to offering group health insurance for small businesses, including:
Yes, as a small business, you have some flexibility with the types of benefits you can offer your employees. There are individual health plans available for employees with no employer contributions required, and payments are made easy through payroll deductions.
At Canal HR, we have a team of employee benefits experts who want to help your small business thrive. Contact us today for a free consultation and to learn more.