Employees of small organizations or non-profits are normally offered some medical insurance choices by the company owner. These plans covers practically almost everything, from trips to the doctor to prescribed medications to hospital trips, and more.

To help companies make a decision as to what kind of small business health coverage best matches the budget of their company, as well as the requirements of their employees, the following is information relating to the different plans types on the market.

Indemnity plans - This type of insurance plans normally have a deductible. The insurance company will begin to pay the cost of coverage after the covered person has paid the amount of the deductible. After the covered costs go past the deductible amount, medical bills are often paid as a fraction of the billed amount, generally around 80%. These plans typically offer the greatest flexibility in selecting where to go for health care.

HMO (Health Maintenance Organization plans - This type of health insurance for the self employed plans typically allows the covered person to make a decision on a PCP (Primary Care Physician) from a network of authorized providers. The primary care physician is in charge of handling the medical treatment of the covered person. If he/she is in need of special care from a provider not in the network, they usually need to receive a referral from their primary care physician.

The insured individual needs to get treatment from a doctor in the network so as to get paid by the HMO.

PPO, or Preferred Provider Organization plan - This plan is when the insurance company makes a contract with specific physicians and hospitals to provide services at reduced prices. If you are a PPO member, you can get medical treatment from a hospital or doctor outside of your network, but you are most likely to have a co-payment or larger deductible amount.

POS, or Point of Service plan - This plan is a blend of HMO and PPO, yet is more flexible than a HMO, but does need you to choose a primary care physician. Much like a PPO, you can receive medical attention from a facility or physician not belonging to the network, but you need to pay more for this privilege. Then again, if your primary doctor refers you, POS will pay the cost.