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Those that work for small companies or non-profits are usually offered various health insurance options by the business owner. The insurance covers just about everything, from trips to the doctor to prescriptions to hospital visits, etc.

To help owners of small business decide on what kind of small business owner health insurance fits best with the company budget, as well as the requirements of those that work for them, the below offers guidance in regards to the different types of plans on the market.

Indemnity plans - This type of insurance plans generally have a deductible. The provider of insurance will start to pay the cost of coverage after the insured individual has met the amount of the deductible. After the medical costs go beyond the deductible amount, benefits are often paid as a portion of the actual expenditures, which is usually 80%. This type of coverage typically offer the most versatility in choosing where to go for health care.

Health Maintenance Organization (HMO) plans - These main health insurance for self employed plans typically allows the covered person to choose on a PCP (Primary Care Physician) from a network of authorized providers. The primary care physician is in charge of handling the health care of person covered. If he/she is in need of treatment from any out-of-network provider, they need to receive a referral directly from their PCP.

The person insured should get treatment from a network provider so as to receive payment from the HMO.

PPO, or Preferred Provider Organization plan - This plan is characterized by the insurance company making a contract with chosen doctors and hospitals to offer treatment at reduced prices. If you are a PPO member, you can seek medical treatment from a hospital or doctor outside of your network, but you most likely will have a co-payment or larger deductible amount.

Point of Service (POS) plan - This coverage gives a combination of HMO and PPO, only this one is more adaptable than a HMO, but you still need to choose a primary care doctor. Similar to PPO, you can get medical attention from a hospital or doctor outside of your network, but it is going to cost you more. However, if your primary physician gives you a referral, the cost should be covered.

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