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Small Business Health Insurance Plans

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Sorting through your options and choosing among available small business health insurance plans can be a tedious job at best. You have to consider several key items before you decide on a plan, which means you would be best served with getting help when comparing small business health plans. You need to get the best coverage for you and your employees, so take the necessary time to figure out what is your best group health plan coverage option.

The easiest way to sort through small business health plans is to request FREE, no-obligation quotes through NetQuote, the Internet's leading insurance marketplace. By completing one secure online form on NetQuote's website, you quickly hear back from several local or national insurance agents that are able to explain your available health plans for small business options. This makes the process of finding the best group health coverage much simpler and quicker than sorting through the options on your own.


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Analyzing Small Business Health Insurance Plans

There are some basic questions you need to answer when comparing small business health insurance plans, such as:

  • Frequency of medical care - A plan that isn't used very often can have a higher deductible than one anticipated to be used with greater frequency. The higher the annual deductible, generally the lower the monthly premium, but the greater responsibility you are taking for paying for your medical care.
  • Special coverage needs - Does your small business health insurance plan need to cover items such as maternity, drug prescriptions, and eye care? The more benefits a particular plan has, the more expensive it will be. Don't pay for coverage that won't be utilized.
  • Level of care needed - Do you need coverage for just major accidents or injuries, or do you need coverage for minor issues and preventative care? The more you intend on using your plan, the lower the deductible should be. However, with a lower deductible comes a higher monthly premium. Determine the level of care you need, and the level of deductible you can live with.
  • Control over choosing doctors - Some small business health plans let you see whatever medical provider you wish, while others require you to have a primary care physician that refers you to other doctors. Determine how much flexibility you want in determining which doctors you want to see, without getting a referral first. This will determine what kind of group health plan you want.

The above questions are just some of the questions you should answer when searching for a medical plan. Fortunately, when you use NetQuote, you are hooked up with insurance professionals that can easily guide you through the process of choosing the right plan for your situation, making the whole process fairly easy.

Small Business Health Plan Quotes

Finding health plans for small business can be confusing, especially if you don't have a background in health insurance. This is where NetQuote steps in to lend a hand. By connecting you with insurance agents that know small business health insurance plans inside and out, NetQuote lets you spend less time wading through health coverage options and more time concentrating on what you do best - running your business. You can request FREE, no-obligation quotes through NetQuote, giving you the ability to discuss your medical plan needs with a professional.

Visit NetQuote to request your FREE, no-obligation small business health insurance plan quotes today!


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Employee Group Health Insurance Highlights

  • Health insurance is an extremely popular employment benefit that both current and prospective employees covet. By offering a group medical plan, an employer positions themselves to attract the highest quality workers, as well as keep those that they currently have.
  • A company offering a group health plan is usually required to pay at least half of the premium for their employees, and can help pay additional costs for other family members, should they choose.
  • There are a variety of tax deductions that a company offering employee health coverage may be entitled to (consult with an accountant on the details). This includes federal tax credits, assuming the company meets the following criteria: It has less than 25 full-time employees (or the equivalent number of part-time employees), average employee annual income is under $50,000, and at least half of the employee premiums must be picked up by the company itself.
  • A business must meet the following requirements in order to be eligible to offer its employees group health coverage: 1 - It must be a legitimate business entity (LLC, corporation, or has filed a DBA) that was formed for a reason other than just to get group medical coverage. 2 - It must have at least two full-time employees, which includes owners, officers, partners, and "regular" employees. However, some states allow a company consisting of only one employee to be eligible for a group plan, assuming it meets certain criteria. 3 - There must be a certain percentage of eligible employees choosing to participate in the plan (percentage can vary depending on state and/or provider). 4 - The business has to contribute at least a certain amount of the premium (generally 50%) for each employee, but can contribute more, should it desire.
  • The number of employees a company has will determine what type of group plan it will be applying for. Small employer plans are for companies with 50 or less employees, while large employer plans are for companies with more than 50 employees.
  • Small employer group health plans are "guaranteed issue" plans, which means that an application cannot be turned down due to medical or claims history, but an exclusionary period (of no more than 12 months) can apply to individuals with pre-existing conditions. The policy must be renewed annually by the issuer unless the purchasing company has failed to pay premiums, committed an act of fraud, or has otherwise violated some term of the contract.
  • Large employer plans are not "guaranteed issue" which means the provider can reject the entire company based on past claims or medical history of the group. If the group plan is put in place, an eligible individual cannot be denied coverage based on pre-existing medical conditions or past claims history. The policy must be renewed each year assuming the insured company hasn't violated a term of their contract, committed fraud, or failed to pay premiums.
  • Following are the most commonplace types of group polices:
  • Indemnity, or fee-for-service, plans - This traditional plan type that was popular before managed care plans came into existence. Indemnity plans allow insured individuals to seek medical care from whomever they wish, but they are typically required to pay for their care at the time of service and then need to seek reimbursement from their insurance company. An annual deductible needs to be met before the insurance company will start reimbursing for care.

    Reimbursement is typically split between the insurance provider and the insured in an 80/20 split once the insured has satisfied the annual deductible, where the insurance company pays 80% and the insured covers the remaining 20%. As you can imagine, fee-for-service plans put a tremendous burden on the insured to not only deal with a great deal of claims paperwork, but also foot the costs of coverage before seeking reimbursement.

  • Managed care plans - This is the most common plan type today, and includes HMOs, PPOs, and POSs, which use a network of contracted health care providers that have agreed to offer their services at a reduced cost. Co-insurance is popular with a managed care plan, which is the amount of a claim the insured is responsible for (typically in the 20% to 30% range), once the annual deductible has been met.

    With an HMO (Health Maintenance Organization), the insured has to choose a primary care physician who is responsible for their overall care, as well as referring the insured to specialists. There often is a low co-payment (in the range of $5 to $30) for office visits required to be paid by the insured, but claims paperwork is handled on their behalf.

    A PPO (Preferred Provider Organization) shares many of the characteristics of an HMO, but is more flexible in that no primary care physician has to be chosen - as long as the medical professional is within the network, the insured can see them without a referral. An out-of-network medical professional can be seen, but the insured's costs may be substantially higher than if they chose an in-network provider.

    A POS (Point of Service) plan offers a combination of HMO and PPO benefits. Like an HMO, a primary care physician has to be chosen but, like with a PPO, the insured may see a specialist without a referral. However, without a referral, the insured's costs may be higher than if they were referred by their primary care physician.

  • HSA eligible HDHPs - To further reduce monthly premiums, a High Deductible Health Plan (HDHP) can be offered to employees. This is a managed care plan with at least an $1,100 annual deductible for individuals, or $2,200 annual deductible for families. If the plan meets certain requirements, including not requiring a co-payment or co-insurance after the annual deductible has been met, it can be used in conjunction with a Health Savings Account (HSA).

    Essentially a savings account whose funds must be used only for certain health care expenses, an HSA is a great way for individuals to put away money for future medical expenses. Annual, tax deductible, contribution limits are set annually by the IRS, but HSA funds continue to grow year-to-year, assuming they haven't been withdrawn for allowable medical expenses. If there are funds still in an HSA once an individual reaches a certain age, the money can be withdrawn to cover living expenses, much like a traditional retirement plan.

  • Monthly premiums can be affected by several things, including:
  • The type of plan that is chosen. An HMO is less expensive than a PPO, which is less expensive than an Indemnity plan.
  • The annual deductible amount. A higher deductible usually means a lower monthly premium.
  • Co-payment and co-insurance levels. The more the insured is responsible for (once the deductible is met), the lower the monthly premiums tend to be.
  • Coverage offered by the plan. The more comprehensive coverage is, the higher monthly premiums are going to be. For example, plans with maternity and full prescription coverage will be more expensive than plans that exclude these coverages.
  • The amount the employer pays for. In order to make it more affordable to the employee, their company can pay more towards premiums. Or, in order for a company to save money, they can require employees to foot more of the bill (though a company is generally required to pay at least half of the premium).
  • Claims history. In a group plan, the overall claims history of the entire group is taken into consideration when premiums are determined. A poor claims history can lead to future premium increases, while the opposite is true.


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