Medical plans for small businesses can come in many forms depending on what a business needs and what is affordable. Medical plans can be purchased from a private insurer and can include a Preferred Provider Organization or a Health Maintenance Organization option. Another type of medical plan that can be used by a small business is known as a high-deductible health plan. Costs of medical insurance plans vary and can be controlled in a variety of ways. Indemnity Plans Many types of health insurance plans purchased by small businesses are known as indemnity plans. These types of plans often pay a percentage of medical costs after an individual has paid the required deductible. For example, a health plan that pays 90 percent of medical expenses means that an individual is responsible for the other 10 percent of the cost. One benefit of these types of plans is that they are flexible as to where health care can be received. Health Maintenance Organization Small-business indemnity health-insurance plans have the option of using a Health Maintenance Organization, or HMO. Individuals that are using an HMO are given a list of providers and are required to choose a primary care physician. The primary care physician is responsible for the health-care needs of an individual or family. Care needs to be received from a network provider within the HMO to have a claim or medical expenses paid. Preferred Provider Organization Indemnity plans used by a small business also have the option of using a Preferred Provider Organization, or PPO. Plans with the PPO option include doctors and providers that have contracted with an insurance company to provide services at a reduced cost. Unlike an HMO, individuals are not restricted from using a provider outside of the network. However, there may be higher costs such as co-payments that apply when a non-network provider is used. High-Deductible Health Plans Small businesses that want to offer medical plans to their employees can provide...
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