To choose a small business health insurance plan, you should act like a consumer purchasing an individual health insurance plan on the Affordable Care Act (ACA) Marketplace.
Here are some things to look out for when comparing small business health insurance:
Check out the types of health plans companies offer, including:
Benefit design determines whether employees have access to out-of-network care and whether referrals are required to see a specialist. One employee may prefer the lower premiums of her HMO and be fine with remaining in-network, while another employee may opt out of her PPO with the understanding that she will pay more premiums. You may prefer the flexibility of Providing choices to your employees can help improve employee satisfaction.
Health insurance premiums are what members pay to receive insurance. This is usually deducted from your paycheck. Most insurance premiums are paid by employers, so companies need to understand how much coverage will cost them and their employees.
Health insurance deductibles, coinsurance, and out-of-pocket limits play an important role in how much members pay when they need medical services. Choosing a plan with a high deductible can mean higher premiums for companies and employees, but it also means employees will have to pay more if they need medical care.
Health insurance companies enter into contracts with medical providers and medical facilities such as hospitals. These contracts determine the amount of money the provider receives and may set requirements for the provider, such as requiring the provider to meet a minimum quality of care. If the network is small, employees may have to find a doctor, which can result in additional out-of-network costs.