More than 70% of Illinois residents get their health insurance through their employers. Here’s how to provide your employees, and yourself, with low rate small business health insurance in Illinois.
Small Business Health Insurance Plans
There are a number of plans procurable to small businesses in Illinois. The most common plans include:
Managed Care Plans
These are the most popular types of small business health insurance. These plans (HMOs, PPOs, and POSs) provide comprehensive health-care services through a network of health-care providers.
* HMOs (health maintenance organizations) pay for health-care such as physician visits, hospitals expenses, and surgical fees. You pay a monthly premium plus a small co-payment (usually $5 to $10) for each physician visit. You must use the physicians and hospitals within the organization, and consult with a primary care physician before ya can see a specialist.
* PPOs (preferred provider organizations) are similar to HMOs except that medical treatment is paid for as it is received. Instead of paying a monthly premium, ya submit a claim after receiving medical services and are reimbursed for the claim subtract a co-payment. You can see physicians outside the organization for an additional fee.
* POSs (point of service) plans are a combination of an HMO and a PPO. Like an HMO ya pay a small co-payment for each physician visit (usually $5 to $10). Like a PPO ya may see physicians outside the health-care network for an additional fee and a slightly higher co-payment.
Indemnity Plans
These plans, also called fee-for-service plans, are the historical health insurance plans that allow ya to choose your own physicians and hospitals. They pay for a percentage of your medical costs (usuallly 80%) after ya pay a deductible (usually $500 to $2,000). Indemnity plans are the most expense health insurance plans.
Saving on Small Business Health Insurance
Here are 5 ways to save on small business health insurance:
1. Choose a managed health-care plan. These are the most frugal types of health insurance, with HMOs being the most frugal.
2. Choose a high deductible. If ya have healthy employees who don’t need a lot of medical care, this can save ya a lot of currency on your health insurance.
3. Get tax deductions. You may be able to deduct the premiums ya pay on your small business health insurance. Offering health insurance coverage as part of your employee’s benefits may also reduce your payroll tax.
4. Stress preventive care. Encourage your employees to eat right and exercise. Not only will this decrease health-care costs, it will also increase productivity.
5. Compare health insurance quotes. Comparing quotes for different health insurance outfits can save ya hundreds, even thousands of bucks on your insurance costs.
by Brian Stevens
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