Business Health Insurance
Business health insurance is a blend of the traditional HMO, PPO, POS and Fee-for-Service plans.
Business health insurance involves "Managed care" - an umbrella term used to describe several types of cost containment models. Of the Americans who obtain health care through their employers, 70% are enrolled in a managed care plan. Whether PPO, HMO or POS, managed care plans share some of the same basic characteristics such as the comprehensive health care services are offered through arrangements with selected doctors, hospitals and providers and that financial incentives for recruiting members and convincing them to stay within the network.
Business health insurance may require Health Maintenance Organizations (HMOs) plans that offer health care in certain geographic areas. Members of the plan agree on a set number of comprehensive services for an affordable monthly premium. Generally, these plans have no deductibles and minimal copay.
A Preferred Provider Organization (or PPO) is another type of business health insurance offering that usually contains groups of hospitals and providers that contract with employers, insurers, third-party administrators and others to provide health care services to covered persons and to accept negotiated fees as payment for those services.
Fee-for-Service is the conventional form of business medical insurance that enables employees to choose their own physicians, specialists and hospitals. Most plans require that members meet a set deductible as well as a coinsurance payment. Insurers pay a percentage (usually 80%) of covered "reasonable and customary" service charges.
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Business Health Insurance
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