Health Insurance For Small Businesses

Health Insurance For Small Businesses

Health insurance for a small business can be purchased from a number of sources, but there are certain criteria that must be met before companies will write policies for smaller companies. For example, a proprietor must have two full-time employees to be eligible for health insurance for small businesses, and must be able to prove it is a legitimate company by producing a license, a fictitious name filing, articles of incorporation, or articles of organization. Also, the employer must meet the minimum contribution percentage set by the insuring company when buying policies. Next to their compensation, employees value the benefits--particularly health insurance--an employer has to offer. Therefore, when a boss is able to offer this benefit, the company is more likely to draw more competent employees to the workplace. Furthermore, they are more likely to stay with the company longer, so the benefit to the owner is obvious. 

On the other hand, these type of plans provide coverage for the company owner and his family at the lower group rate too. Also, the business can deduct one hundred percent of the premiums for health insurance for a small business as an expense on the company's income tax, and there is a reduction in payroll taxes for the company as well. The employee's portion of the health insurance for small businesses can be paid with pre-tax dollars also. Three types of plans are available to these companies. First, is the indemnity policy, which has both pluses and minuses. On the plus side, the insured can go to any physician or hospital he or she desires with this kind of plan. On the minus side of this kind of plan, the insured has to pay for a portion of every service rendered in addition to his premium. 

However, the managed care plans costs the employee less out of pocket, and there is less paper work involved. The managed care health insurance for a small business will include the HMOs (health maintenance organizations), PPOs (preferred provider organizations), and POS (point of service) organizations, and all of them have restrictions as to which doctors and hospitals the insured may use. All of those companies offering health insurance for small businesses have physicians and hospitals on their list that are properly licensed and accredited, but they may not include the doctor the insured has been going to for years. As an employer or company owner, one should provide for his employees as God has provided for him as a demonstration of love, for we are to "be kindly affectioned one to another with brotherly love; in honour preferring one another; not slothful in business; fervent in spirit; serving the Lord".