Employees of small organizations or groups are normally given various health insurances by the company owner. The insurance covers practically almost everything, from visits to the doctor to prescribed medications to hospital visits, etc.
Company owners must know exactly what health protection suits the needs of the employees. Of course, the budget should be considered, too. The information below is given to help owners decide which the best plan for their situation.
Indemnity Plan – This type of medical plan usually has a deductible, an amount that you paid before an insurance provider starts paying the benefits. If the covered expenditures exceeded the amount that is deductible, benefits are typically compensated as a portion of actual cost, usually 80%. This plan regularly gives flexibility in terms of selecting where to obtain medical attention.
Health Maintenance Organization or HMO is a plan in which the covered employee gets to choose his or her own Primary Care Physician or PCP from various network providers. The physician is in charge of your health care needs and in case you want to consult from another network provider, it is important to request a referral from the PCP.
The person insured should obtain treatment from a network provider so as to get paid via the HMO.
Preferred Provider Organization or PPO is a plan in which an insurance company negotiates with preferred physicians and hospitals to offer their service at a lower cost. An employee insured in PPO can obtain medical care from a physician or hospital not selected by the provider, however, that employee would possibly pay a co-payment or larger deductible.
Point of Service (POS) plans – These main medical plans are a combination of HMO and PPO plans. It has better flexibility compared to HMOs; however, it needs the insured person to choose a primary care physician. Comparable to PPO, the insured person can seek treatment from a non-selected provider and pay additional cost, but if the insured person was referred by the primary care physician to a non-selected physician, the insurance company will shoulder the expense.
