If you’re planning to open your own small business, there are three types of professionals you’ll need to acquaint yourself with at the outset: an attorney, an accountant, and a skilled insurance agent. The latter may soon seem like the most important – with health insurance costs still skyrocketing, even the smallest insurance planning decisions can have a major impact on your profit status. A qualified health insurance agent with some experience in your line of work can help you make all of the important decisions and show you the important differences among small business health insurance plans.
For any business to qualify for most small business health insurance plans, they must have between two and fifty employees. These types of plans are not designed for the self-employed; sole entrepreneurs will want to seek a separate type of specialty insurance.
There are two primary types of small business health insurance plans – indemnity health plans and managed health care plans. Of the two, managed health care plans are by far the less expensive and most common choice. Indemnity plans allow much more flexibility and freedom, especially when it comes to choosing health care providers, but come at a much higher cost for both the business owner and his employees.
There are several different types of managed health care plans, including HMOs, PPOs, POSs and medical savings accounts. All of these are available options for most types of small businesses, and they all have their own sets of advantages and drawbacks. This is where the assistance of a qualified health insurance agent most comes in handy; weighing and evaluating the differences will depend heavily on the size of your business and the industry you work in. It takes someone with vast experience in the intricacies of insurance to make sense of it all. If you’re a member of your local chamber of commerce, there may be some great insurance connections and discounts to be found among the membership. Otherwise, a strong reference from a fellow entrepreneur is a great way to find an agent who can get you started.
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