About Health Plans for Small Business
A business with more than two employees may be able to obtain small group health insurance. Carriers typically consider employers with fewer than 50 employees small groups. Most national health insurance carriers offer plans for small businesses. You will have several plan types to choose from, with various premiums. You may work with an insurance broker or directly with the carrier to apply for and obtain coverage for your employees.
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Type of Small Group Health Plans
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In the small business market, carriers offer several types of health insurance plan options. Plan types include health maintenance organizations, preferred provider organizations, consumer-driven health plans and traditional indemnity plans. Insurers may add services such as wellness and disease management, case management, vision and dental onto their medical plan offerings. Each plan has different features and levels of flexibility and costs. Small businesses should evaluate which carriers allow integration of vision and dental into their medical plans or offer discounts for multiple-year contract commitments.
Premium Factors
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Many factors determine the health insurance premium --- the cost of the policy. Underwriting is a process through which the insurer considers several factors to determine the premium rates. While large group insurance is not subject to medical underwriting of individual employee's medical history, depending on the state of your headquarters, small businesses may be subject to individual medical underwriting. In addition to average age of all employees and and their claims history, underwriting considers the benefit levels offered, plan deductibles and maximums, benefit exclusions and dependent age levels to determine premiums.
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Other Considerations
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Several factors will determine if, what and how much health insurance you plan to offer your employees. Though premium rates will primarily drive your decision, consider what you get for those rates. Review each plan for details such as deductibles, maximums and out-of-pocket costs to employees. Also, if selecting an HMO or PPO, review the provider networks of the carriers you are considering to determine the strength of the networks where your employees live. You may also factor the percentage the company will contribute towards the premium and how much the employee will contribute.
Applying for Small Group Insurance
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Most businesses use an insurance broker to help them with group health insurance options. Brokers will assist in finding the best policies for their customer, negotiating rates and guide you through the application and employee enrollment process. Small businesses under 50 employees may prefer not to use a broker. Some insurers require you to use a broker while others allow small businesses to apply directly with the carrier. Visit the websites of the carriers and select the option for business health insurance. You will find a list of plans in your area, application procedures and contact information for further assistance.
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