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