People that work for small companies or non-profits are usually offered multiple medical insurance options by the business owner. These plans covers pretty much everything, ranging from visits to the doctor to prescribed medications to emergency room visits, and more.

To help companies decide on what type of heath insurance for small business owners best matches the budget of their company and the needs of their employees, the below offers particulars relating to the various plans types available available.

Indemnity plans - This type of insurance plans usually include a deductible. The provider of insurance will begin to pay the benefits after the covered individual has met the amount of the deductible. Once the medical costs go past the deductible amount, medical bills are often paid as a portion of the billed amount, generally around 80%. These plans typically offer the best versatility when it comes to choosing where to get health care.

HMO (Health Maintenance Organization plans - These main self employed medical insurance plans usually allows the insured person to decide on a PCP (Primary Care Physician) from a directory of network authorized providers. The primary care physician is the one that handles the medical treatment of the covered person. If the covered person requires treatment from a provider not in the network, they usually need to obtain a referral from their PCP.

The insured individual should get treatment from a network provider in order to receive payment from the HMO.

PPO, or Preferred Provider Organization plan - This type of coverage is when the insurance provider makes an agreement with chosen physicians and medical facilities to give services at discounted prices. If you are a PPO member, you can seek health care from a hospital or doctor who is not from your network, but you most likely will have a co-payment or larger deductible amount.

POS, or Point of Service plan - This coverage is a combination of HMO and PPO, yet is more flexible than HMO plans, but does need you to decide on a primary care physician. Similar to PPO, you can get medical attention from a facility or doctor outside of your network, but you need to pay more for this privilege. However, if a primary care physician refers you, the cost should be covered.