One of the most important decisions you must make about your business’s benefits plan is what type of health insurance you can offer to your employees. According to, aside from paid vacation time, employees consider health insurance the most important benefit an employer can offer. Do not undertake this decision lightly. Find out what your employees need, and make a decision based on those needs and your company’s finances.
Step 1
Choose between a health maintenance organization (HMO) or a preferred provider organization (PPO). HMO and PPO costs will vary depending on your location. HMO plans require employees to visit only approved doctors; your plan will tell you which doctors are covered. PPO plans let you choose your own doctor, but you pay for that convenience with high deductibles.
Step 2
Speak with your employees. Determine what your employees want and need in terms of a health care plan. Discuss the type of plan you have selected (HMO or PPO). Tell your employees how much will be deducted from their paychecks.
Step 3
Contact a local independent insurance broker. Ask for information on various health care plans. Collect price quotes, such as the monthly cost for your business’s policy. Request information on customer service, scope of coverage for the various plans, limits on the plans and ratings of the plans (if any).
Step 4
Balance the broker’s information against the expectations and needs of your employees. Factor in your business’s budget constraints. Choose the plan that will meet most employee expectations, but will not cause your business to suffer greatly financially.
Author: Christopher Carol