Small Business Health Insurance Plans in Texas
Posted by Layla Glynde | 0 comments
- texas map image by Vladislav Gajic from Fotolia.com Understand the small business health insurance plans available in Texas. Texas offers small businesses several advantages when purchasing group health insurance. Small businesses can use these advantages to offer attractive health insurance plans to employees. If you’re an employer doing business in Texas and you employ between two and 50 employees, make sure you understand the kinds of health insurance plans available in your state.
Indemnity Policy
- Indemnity plans offer the most choice for small business owners and their employees in that benefits are provided for in-network and out of network doctors. An insurance company pays for health insurance claims to a doctor or hospital as long as the claim fits within the terms and conditions of the health insurance policy. Members of the insurance plan pay a premium every month. This premium is often much higher than a managed care plan but allows maximum flexibility and choice in terms of what doctors you can see and how you receive your health care.
Managed Care
- Health Maintenance Organizations (HMO) and Preferred Provider Organizations (PPO) are insurance plans that contract directly with doctors or hospitals for services. Costs are often much lower than with an indemnity plan. Patients need to obtain referrals to see a specialist. You must generally select a primary care physician, who will be the director of your health care and will be the doctor that you must obtain referrals from, if necessary. With PPOs, service may be provided for out-of-network doctors for an additional out-of-pocket charge to the insured. You also generally have more freedom as to which doctor you see, and you may not need a referral to see a specialist. PPO plans can range from simple co-pay plans to high-deductible health plans with health savings accounts that give you even more control over your health care costs.
Self-Funded
- Employers with significant financial means can self-fund their own health insurance plan. In effect, the employer becomes the insurance company and provides benefits to the employees, handles claims, and all related paperwork. Employers choosing to become their own health insurer should consult with a lawyer to address the setting up of the health plan and to learn about all of the legal responsibilities that they will be taking on as their employee’s health plan provider.
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