Health Insurance Plans for Your Business
by VENDIREX on 07/05/2015 - 03:13 pm |
Tag: HR Software
Though the past couple of years have changed the landscape of health coverage forever, employees still consider health insurance to be the most important of all benefits offered by their employment prospects. Quality coverage is expected, and now more than ever a point of comparison. For employers, it is a cost of doing business that isn’t going away, so it’s best to choose wisely for yourself and your staff, especially if future growth is in your business plan.
Let’s take a look at the three major types of health care plans you can offer your employees. Most companies offer one of these options, however if you own a larger firm with lower end to higher end earners, you might want to offer a choice.
Health Maintenance Organizations (HMOs)
HMOs are capable of controlling their costs, and therefore are the lowest in cost of any of the other types of coverage plans. That said, HMOs have less flexibility than other plans. You are required to select one primary care doctor who cares for most of your basic illnesses as well as health checkups. Referrals from this primary physician are necessary for you to see a specialist and enjoy the plan co-pays and deductibles. Health care providers, including hospitals, must be part of the HMO network. Not as popular with employees, this type of coverage entails them switching to different doctors and having to pay a primary co-pay prior to being able to see a specialist - incurring 2 co-pays.
Point of Service Plans (POS)
With a POS, a member selects their primary care doctor, but they are free to visit other providers without a referral with at least some of the costs covered by their plan. The out of network charges are going to be higher than in-network. These plans are well received by employees, as they have some of the cost savings enjoyed with an HMO but fewer limitations on the member’s choices of physicians.
Preferred Provider Organizations (PPOs)
PPOs have become the most popular type of health care provided by employers. Again, the PPO is a specific group of doctors and hospitals (who agree to offer services at a reduced cost), but not nearly as limited as an HMO which can be restricted to just a handful of clinics. PPOs do allow you to see a provider out of their network, but at a greater co-pay and co-insurance rate to the patient. The program is designed to aim members toward particular providers who agree to discount their rates.
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