Options for first-time purchase of insurance.ONCE small businesses grow past the mom-and-pop stage, employees often look to the company for greater health coverage. This puts employers in the difficult position of either spending a lot of money or potentially losing their best people. Gregory Good, a senior vice president in Marsh's employee benefits practice, has advice for entrepreneurs faced with having to choose a small group health plan. "The main considerations are cost and customer service. On the service side, work with your broker to see which insurance companies are the most user-friendly. On the cost side, there are a lot of variables, including the level of coverage and the age, sex, and resident ZIP codes zip code System of postal-zone codes (zip stands for “zone improvement plan”) introduced in the U.S. in 1963 to improve mail delivery and exploit electronic reading and sorting capabilities. of your employees. "HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, plans are typically the least expensive health plans in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . Often there are also preferred provider organization pre·ferred provider organization n. Abbr. PPO A medical insurance plan in which members receive more coverage if they choose health care providers approved by or affiliated with the plan. plans available, which are more expensive and are typically carried by the owners and key employees. "Insurance companies will not deal with you directly. Your business insurance agent or workers compensation insurance broker should be able help you arrange a small group medical plan, but you can also use regional brokers. "The rates for employers for fewer than 50 employees are filed with the state of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . Your agent or broker can access this information so you can make comparisons to get the best possible price. "People worry about whether pre-existing medical conditions See carpal tunnel syndrome, computer vision syndrome, dry eyes and deep vein thrombosis. will be covered under their new plans. For the most part, state and federal laws make certain that pre-existing conditions are covered. For PPO PPO abbr. preferred provider organization PPO Managed care Preferred provider organization, see there Infectious disease Pleuropneumonia-like organism, see there plans, it can affect the price, but not generally more than 10 percent. There is no preexisting condition preexisting condition, n in dentistry, the oral health condition of an enrollee that existed before his or her enrollment in a dental program. preexisting condition limitation for HMO plans. "Your employees should count on paying 20 percent to 25 percent of the premiums. It depends on how generous you want to be as an employer. "Once you get your plan in place, the rates are guaranteed for a year. At the end of that period you'll be told your renewal price, which is generally about 8 percent to 13 percent higher. It's a good idea to shop your plan again if you are unhappy with the rate increase. "Don't worry too much if one of your employees has a large claim. The small group plans are pooled by the insurance companies, meaning that they are thrown in with hundreds, if not thousands of other group plans. One big claim shouldn't have a significant effect on your rates." |
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