Many small business owners know that in order to be successful, they need to be incentivized to attract employees. This can be any number of things, but mostly it’s the benefit of group health insurance. While this might be an excellent strategy for your small business to recruit new employees, there are a few things you need to know first before plunging into choosing a plan. Research group insurance contracts thoroughly before choosing one for your company.
A group health insurance plan can range from any small business that has as few as two employees to fifty. There are two ways in which you can offer health insurance to your employees; This is mainly decided by your own budget. Many small businesses that offer group health insurance add to the cost of the plan. On the other hand, if an employee wants cover for their families, the employer can offer to pay the employees’ bonuses and let them pay the premium for their families.
Another aspect of group health insurance is the choice between managed care or fee-for-service. Managed care plans include Health Maintenance Organization (HMO), Preferred Provider Organization (PPO) or Point of Service Plan (POS).
An HMO will significantly reduce the cost your healthcare members have to pay as long as they use the providers indicated by the HMO. A PPO does not need a referral to see a specialist. While the PPO is more flexible, it will bring higher costs for per-visit and annual deductibles. The POS plans are essentially a combination of the functions you will find in an HMO and PPO. Members can choose to pay a flat fee for offices on the network or pay a deductible fee to see someone on the network. The service plan gives the employee the opportunity to select health care providers themselves. This means that they will have much more flexibility where to seek medical help.
Adding an appealing group health insurance plan to your business could potentially bring more employees. These are just the basic information about the group health insurance; There are many options to consider when choosing a plan. Be sure to examine all options to create the best plan for your employees.