Choosing health insurance means balancing what your business can afford with the coverage your employees need. The right coverage can do more than support the health of your employees. It can help strengthen your business and contribute to its future success. Learn the basics of employer-sponsored health coverage to find a plan that fits your organization’s needs – no matter its size.

Supporting long-term success

Unexpected medical expenses can take away your ability to focus on running your business. By limiting your personal liability for medical costs, health insurance can reduce financial strain and help you with your long-term goals.

When you have insurance, your health plan will negotiate with healthcare providers to offer discounted rates for medical services. You can receive regular checkups and preventive care, often at no cost.

Even if your plan requires some out-of-pocket costs, having coverage can protect you in the event of injury or hospitalization that you, or one of your employees, experience. Without coverage, routine visits and other medical services can be significantly more expensive.

Offering insurance can also help you hire (and keep!) your best workers. Employer-sponsored group health insurance coverage is a valuable enticement and an effective way to differentiate your small business from competitors.

What plans are available for employers? 

Businesses typically have two main insurance options: a custom health option and individual care expense arrangement (CHOICE Arrangement) or traditional group health insurance. Any size company can utilize a CHOICE Arrangement. Similarly, group health insurance options exist for small businesses (2 to 50 full-time employees) and large employers (50 or more full-time employees).

CHOICE Arrangements

Custom health option and individual care expense arrangements (CHOICE Arrangements), previously known as individual coverage health reimbursement arrangements (ICHRA), provide both employers and employees with more freedom over their health coverage. Employers can set a controlled budget, and employees can choose a plan that best fits their needs. Businesses of all sizes are eligible for a CHOICE Arrangement.

Group health insurance plans

These plans are offered through employers, with costs shared between the employer and employee. Coverage can include your employees’ spouse and dependents. These plans cannot deny coverage based on medical history, and insurance carriers cannot require health information when determining group rates. In addition to health coverage, Security Health Plan offers a workplace wellness program to help employees achieve their personal goals and improve their overall well-being.

Types of health plans 

Several types of group health plans are available based on your business and employees’ needs. Some offer more flexibility in choosing where you can receive care, while others help lower costs by limiting coverage to a specific healthcare network.

The best plan for you depends on the level of coverage, convenience and cost you’re looking for. Here’s a brief overview of four common types of health insurance plans.

Health Maintenance Organization (HMO)

With an HMO plan, members typically choose a primary care physician who coordinates most of their care and provides referrals to specialists when needed. Care received outside of the network is generally not covered except in emergencies.

An HMO plan may be right for you if:

• You’re comfortable coordinating your care through a primary care physician
• You want to save on monthly premiums, as HMO plans typically cost less than comparable EPO plans

Exclusive Provider Organization (EPO)

EPO plans are similar to HMO plans because care received outside of the network is generally not covered except in emergencies. However, they do not require members to choose a primary care physician. As a result, EPO plans have become increasingly popular, and more health insurance companies are beginning to offer them.

An EPO plan may be right for you if:

• You prefer receiving care from a specific network of healthcare providers
• You prefer not to coordinate your medical care through a primary care physician

Point of Service (POS)

Members with a POS plan generally receive the highest level of coverage when they get care from doctors and hospitals within their plan’s network. A POS plan combines the coordinated care features of an HMO and the flexibility of a Preferred Provider Organization (PPO). Members may be required to select a primary care physician who helps coordinate their care and provides referrals to specialists. Like a PPO, care received out-of-network may be covered at a lower level, and members may pay more out of pocket.

A POS plan may be right for you if:

• You want a primary care physician to help coordinate your healthcare
• You want lower costs when using in-network providers but still have some coverage for out-of-network care

Health Savings Account (HSA) eligible plans

These plans are designed especially for use with Health Savings Accounts (HSAs). Similar to a flexible spending account (FSA) or 401(k), an HSA is a special bank account that allows participants to save money on a pre-tax or tax-deductible basis to be used specifically for medical expenses.

Unlike FSAs, the money in an HSA rolls over every year and can also earn interest. By pairing an eligible plan with an HSA account, participants can save money on healthcare and earn a tax write-off.

An HSA-eligible plan may be right for you if:

• You’re generally healthy and don’t visit the doctor often
• You want to pay for qualified healthcare expenses with pre-tax dollars (up to an annual limit)
• You prefer lower monthly premiums, even if it means paying more out of pocket when you need care

Ready to explore coverage for your business?

For more information about our health insurance, request a quote. You can also call us at (866) 633-8321 to talk to an expert and find a plan that meets your needs.