Attract Employees: Group Health Insurance
Many small business owners know that in order for them to be successf
ul they must offer an incentive to recruit employees to work for them
. This can be any number of things, but most often it is the benefit
of offering group health insurance. While this could be an excellent
strategy for your small business to take in order to recruit new empl
oyees, there are a few things that you must know first before you div
e into selecting a plan. Research group insurance policies thoroughly
before choosing one for your company.
A group health insurance plan can be obtained by any small business
that has as little as two employees to as many as fifty. There are t
wo ways you can go about supplying the health insurance to your empl
oyees; this will mainly be decided by your own budget. Many small bu
sinesses that offer group health insurance help contribute towards t
he cost of the plan. On the other hand if an employee wants to have
coverage for their families, the employer might offer to pay the emp
loyees' premiums and have them pay the premium for their families.
Another aspect of the group health insurance plan will be deciding
between managed care or fee-for-service. Managed care plans inclu
de Health Maintenance Organization (HMO), Preferred Provider Organ
ization (PPO), or Point of Service plan (POS).
An HMO will significantly reduce the cost that your members will have
to pay for medical care as long as they use the providers specified
by the HMO. A PPO will not require a referral in order for them to se
e a specialist. While the PPO is more flexible it will bring higher c
osts to the per-visit and annual deductibles. The POS plans are basic
ally a combination of the features that you will find in an HMO and P
PO. Members get to decide whether to pay a flat fee for offices in th
e network, or pay a deductible charge to see someone out of network.
The fee-for-service plan gives the employee the power to select healt
h care providers th