Frequently Asked Questions

Are there many different kinds of health insurance plans for small business?

Group health insurance plans fall into two broad categories:indemnity plans and managed care plans. Indemnity plans involve more paperwork for your employees, but offer more flexibility in the choice of healthcare providers. Your employees are able to see most any doctor and are not required to have a primary care physician. There is an annual deductible and your employees may be required to pay upfront for health services before submitting a claim. Managed care plans (HMOs and PPOs), on the other hand, use healthcare provider networks. Doctors and hospitals within this network agree to provide services to your employees at pre-negotiated rates and submit their bill directly to the insurance company. A managed care plan is easier because it requires less paperwork, but an indemnity plan can give your employees greater choice in selecting a doctor.

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