Health insurance does so much more than protect the health of you and your employees. As a small business owner, coverage can help you manage unexpected expenses, attract and retain employees and ensure access to quality care from trusted providers in your community.

Supporting long-term success

Insurance companies negotiate with healthcare providers to offer discounted rates for medical services. You can receive regular checkups and preventive care, often at no cost. Without coverage, routine office visits and other medical services can be significantly more expensive.

Health insurance can also help protect you from unexpected medical expenses. 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.

As a small business owner, 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 help reduce financial strain and help you with your long-term goals.

Health 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 small businesses?

There are two primary categories of health insurance small business owners can choose: a relatively new option called a custom health option and individual care expense arrangement (CHOICE Arrangement) or traditional group health insurance.

CHOICE 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. They are available to businesses of all sizes.

Group health insurance plans (small employers)

Sometimes referred to as small business plans or group health insurance, these plans are offered through employers. Costs are typically shared between the employer and employee, and coverage may also be available for a spouse and dependents. These plans cannot deny coverage based on medical history, and insurance carriers cannot require health information when determining group rates.

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

Ready to learn more?

For more information on our health plans, visit our employer page or call us at (866) 633-8321.