How to Choose Health Insurance for a Small Business

Many small businesses attest to the fact that finding affordable health insurance can be a huge challenge. The premiums can be a heavy load to bear for the small business owner or freelancer. That's why it's important to follow a few tips and shop around to find a health insurance program. Here are some helpful hints to find a health insurance policy for your small business.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Computer with Internet Access

1. Learn the biz. There are a few different plans to choose from. Indemnity or fee-for-service (FFS) health care plans are the traditional policies. You get to choose the doctor you want, who in turn sends a bill to your insurance company. These plans are still in existence, but you'll pay higher premiums for them.
   
   On the other hand, preferred provider organizations (PPOs), point-of-service plans (POS) and health-maintenance organizations (HMOs) are also popular. You choose a doctor from a network and receive optimal coverage when you stick with that category.
2. Shop around. There are plenty of companies with plans tailored for small businesses. You may want to contact an independent insurance agent to shop around for you, which is helpful too. There are even companies that offer consultations for small business owners.
   
   But don't discount the Internet when you want a quick fix to find a health care plan for your business. A quick search will turn up policies and prices at a glance.
3. Get grouped. There are also more ways to gain the actuarial power of belonging to a group for health insurance purposes. State-based associations are a great idea, as the federal government doesn't allow national trade groups to make health insurance available to their members. Networks like the National Association for the Self-Employed are a great place to start for resources, in addition to local chambers of commerce and other industry associations.

Tips & Warnings

• You may want to look at individual health insurance. You can easily shop around for this online. But sole insurers must offer everyone a policy regardless of their health history, although it'll cost you.