Small Business Health Insurance Coverage

Although it is not a rule, many small businesses offer their employees the option of joining a small business health insurance plan. Small businesses are usually defined as having between 2 and 50 employees. Though the pay rate is not usually high for most small businesses (especially non profit organizations) an incentive in the form of health care coverage is often part of the hiring package.

There a handful of network provider plans that are the usual choices of small business health care. These include HMOs, PPOs, POSs, and the new Health Savings Accounts. Get to know these terms before you begin and you will have a much easier time discerning the right plan for you. eHealthInsurance.com offers a glossary of terms for your convenience.

Sometimes it is advisable for complementary small businesses to join forces and buy small business group health insurance together. Many such ‘pools’ or alliances exist, some are even statewide organizations. The best place to check out these options is through the Chamber of Commerce or small business health insurance commissioner for your state.

You have choices to consider with small business health insurance:

• high or low deductible
• high or low monthly premium payments
• options like dental, vision, pharmacy, and alternative therapies
• maximum limit per claim and lifetime maximum limit
• if you go through a group plan, you will choose between an HMO, PPO, POS, and HSA

Keep your personal information handy when you are ready to apply for small business health insurance:

• business zip code
• number of employees who will enroll, their names, zip codes, birth dates, and number of dependents
• date company founded
• date for coverage to start