More than 70% of Illinois residents get their health insurance through their employers. Here’s how to provide your employees, and yourself, with cheap small business health insurance in Illinois.
Small Business Health Insurance Plans
There are a number of plans available to small businesses in Illinois. The most common plans include:
Managed Care Plans
These are the most popular types of small business health insurance. These plans (HMOs, PPOs, and POSs) provide comprehensive health care services through a network of health care providers.
* HMOs (health maintenance organizations) pay for health care such as doctor visits, hospitals expenses, and surgical fees. You pay a monthly premium plus a small co-payment (usually $5 to $10) for each doctor visit. You must use the doctors and hospitals within the organization, and consult with a primary care physician before you can see a specialist.
* PPOs (preferred provider organizations) are similar to HMOs except that medical treatment is paid for as it is received. Instead of paying a monthly premium, you submit a claim after receiving medical services and are reimbursed for the claim minus a co-payment. You can see doctors outside the organization for an additional fee.
* POSs (point of service) plans are a combination of an HMO and a PPO. Like an HMO you pay a small co-payment for each doctor visit (usually $5 to $10). Like a PPO you may see doctors outside the health care network for an additional fee and a slightly higher co-payment.
These plans, also called fee-for-service plans, are the traditional health insurance plans that allow you to choose your own doctors and hospitals. They pay for a percentage of your medical costs (usuallly 80%) after you pay a deductible (usually $500 to $2,000). Indemnity plans are the most expense health insurance plans.
Saving on Small Business Health Insurance
Here are five ways to save on small business health insurance:
1. Choose a managed health care plan. These are the least expensive types of health insurance, with HMOs being the cheapest.
2. Choose a high deductible. If you have healthy employees who don’t need a lot of medical care, this can save you a lot of money on your health insurance.
3. Get tax deductions. You may be able to deduct the premiums you pay on your small business health insurance. Offering health insurance coverage as part of your employee’s benefits may also reduce your payroll tax.
4. Stress preventive care. Encourage your employees to eat right and exercise. Not only will this decrease health care costs, it will also increase productivity.
5. Compare health insurance quotes. Comparing quotes for different health insurance companies can save you hundreds, even thousands of dollars on your insurance costs.