Employees of small companies or groups are normally offered various health insurance options by the company they work for. The insurance covers just about everything, from visits to the physician to prescribed medications to hospital visits, and more.

To help owners of small business decide on what kind of small business health plans fits best with the budget of their company and the requirements of those that work for them, the below offers information relating to the various plans types available.

Indemnity plans – This type of medical plans usually have a deductible. The insurance company will begin to pay the benefits after the deductible has been met. After the covered costs go beyond the deductible amount, benefits are usually paid as a portion of the billed amount, which is usually 80%. This type of coverage typically offer the greatest flexibility when it comes to choosing where to go for health care.

HMO (Health Maintenance Organization plans – This type of self employed health insurance plans typically allows the insured person to choose on a Primary Care Physician, or PCP, from a directory of network authorized providers. The primary care physician is in charge of handling the health care of the insured person. If he/she is in need of treatment from any out-of-network provider, they need to obtain a referral directly from their PCP.

The person insured needs to obtain treatment from a doctor in the network so as to get paid by the HMO.

Preferred Provider Organization (PPO) plan – This type of coverage is characterized by the insurance company making a contract with chosen physicians and hospitals to give treatment at reduced prices. If you are a PPO member, you can receive medical treatment from a facility or doctor outside of the network, but you most likely will have a co-payment or larger deductible amount.

Point of Service (POS) plan – This coverage is a blend of a PPO and a HMO, yet is more adaptable than a HMO, but you still need to choose a primary care doctor. Similar to PPO, you can receive medical service from a hospital or doctor outside of your network, but it is going to cost you more. Then again, if your primary doctor refers you, the cost should be covered.