Establishing a Health Plan

Health insurance plan is one of the most pleasingusually pay a sum of amount per office visit
benefits you could offer your employees.(normally $10 to $25); the insurance company
Following are the several basic options for settingneeds to pay the rest.
up a plan:Self-insurance: When you need to understand all
A traditional indemnity plan or fee for service:or an important portion of an existing risk, you
Employees select their own medical care provider;are basically self-insuring yourself. Usually
the health insurance company either pays thepaperwork is handled by an outside company, you
provider directly or reimburses employees eligiblejust need to pay the claims, and sometimes
for the covered amounts.employees assist paying the premiums. The
Managed care: The two most common types ofbenefits also include higher control of the health
managed care are the Health Maintenanceplan design, an effective customized reporting
Organization (HMO) and another one is Preferredprocedures and great cash flow advantages.
Provider Organization. An HMO is basically aMedical savings accounts : Congress of late
prepaid health-care plan in which employees needconcluded with a four year test of medical
to use doctors employed by or may be undersavings accounts , especially on savings accounts
contract to the HMO and hospitals, which arecoupled with high deductible insurance policies.
approved by the HMO. Under a Preferred ProviderAccounts are now funded with employee's pretax
Organization, the health insurance plan negotiatesdollars; disbursements are absolutely tax free if
discounts with their particular physicians andused for specific approved medical expenses.
specific hospitals. Employees normally chooseUnused funds are accumulated indefinitely and
doctors from the available approved list, and thenearn tax-free interest.