People that work for small businesses or non-profits are regularly offered various medical insurance choices by the business owner. The insurance covers practically almost everything, from trips to the doctor to prescriptions to emergency room trips, etc.

To assist owners of small business make a decision as to what kind of small business health plan fits best with the company budget and the needs of their employees, the below offers information relating to the various types of plans available.

Indemnity plans – These main health plans generally include a deductible. The insurance company will begin to pay the cost of coverage after the deductible has been met. After the covered expenses go past the amount of the deductible, medical bills are generally paid as a portion of the billed amount, generally around 80%. These plans generally offer the most versatility when it comes to selecting where to go for medical care.

HMO (Health Maintenance Organization plans – These main self employed health insurance plans typically allows the covered person to decide on a PCP (Primary Care Physician) from a directory of network authorized providers. A primary care physician is in charge of handling the health care of the covered person. If the covered person is in need of special care from any out-of-network provider, they need to obtain a referral directly from their primary care physician.

The insured individual needs to receive treatment from a doctor in the network in order to get paid by the HMO.