Mananged Care One Health Insurance Option for Small Business
A Home Business Article Contributed by Elizabeth Fox-Wise
Some Small Business Owners are Turning to Managed Care Health Insurance
Health Insurance costs have gotten so high that many small business owners have had to stop offering it to their employees. Since eighty percent of all of the new jobs created in the past five years have been within small business, this is a national epidemic problem. Families of millions of American's who are employed by small business have no health insurance coverage.
As one solution to offering health insurance for their employees, some small business owners are turning to Managed Care Insurance Programs.
There are three types of Managed Care health insurance plans: HMO (Health Maintenance Organizations) , PPO (Preferred Provider Organizations) , and POS (Point Of Service)
What is the Benefit to Small Business to Switch to Managed Care Health Insurance
There are restrictions and limitations to Managed Care Health Insurance that employees do not usually like. The ensured often feel like the insurance company has more control over their medical care than do they or their doctors. For this reason, in the 1990s, when health insurance was more affordable, business moved away from managed care health insurance when they could. By offering a more traditional and flexible health insurance policy, they were able to make themselves attractive to perspective employees during a job market that demanded they compete for top employees in their industry.
As the economy changed, though, and unemployment rose, the job market was no longer competitive and attracting good employees was the least of business' concern. At the same time, health insurance premiums went into a five year run of double digit increases. The cost of insurance plans has made many small businesses stop offering insurance all together. As an alternative, the more affordable managed care plan now looks attractive.
What is a Managed Care Health Insurance Plan for a Small Business?
The common factor between these three types of managed care plans is the incentive (usually, a lower price paid) if the insured party goes to a specified network of health care providers. Beyond that main factor, there are some big differences between the three types of Managed Care Health Insurance Plans.
HMOs provide medical treatment on a prepaid basis. HMO members pay a fixed monthly fee, regardless of how much medical care is needed that month. HMOs provide a variety of medical services, from office visits to hospitalization and surgery within their network of providers.
A PPO is a network of doctors and hospitals that provide medical service only to a specific group of members. Rather than prepaying for medical care, PPO members pay for each service at the time that it is provided. The PPO sponsor (usually an employer or insurance company) usually reimburses the member for the cost of the treatment, minus any co-payment fee.
A point of service plan is a health insurance policy where you pay no deductible and usually only a small co-payment when you use a health care provider within your network.
Although not usually the favorite, Managed Health Care Insurance costs can be significantly lower for the small business owner, allowing you to continue to offer health insurance to your employees.
