Small Business Group Health Insurance

Massachusetts Small Business Health Insurance


Companies looking for Massachusetts small business health insurance are glad that their options are expanding. There are more plan options and pricing variables for Massachusetts group health insurance plans. This means that more employees can be covered and more companies can provide affordable Massachusetts small business health insurance.

The need for healthcare is universal and not just pertaining to a business in Massachusetts. The political debates that are happening on local, national and global level are just drawing attention to the need for a Massachusetts group health insurance plan. No person is immune from disease and we all fall prey to some type of illness even if it is a common cold or just a stomach virus that is making its round through the office. Employees are exposed to countless germs day in and day out, and having quality healthcare coverage can help keep them productive and happier.

Eligible Companies for Massachusetts Group Health Insurance

Not all businesses can offer a discounted healthcare plan. Massachusetts group health insurance plans are only available to companies who have at least two and no more than 50 employees. This number of employees comes from the total of eligible employees who may participate in the Massachusetts small business health insurance program. Most typically these employees are full time, meaning they work at least 30 hours a week, and they are not seasonal or contract.

Another stipulation is that companies have a certain percentage of their eligible employees participate in the program. The percentage of participation depends on the medical coverage provider but it can range from 50 to 75 percent. Companies understand the importance of reaching that percentage that is why they try to find the best possible plans to offer to their employees. If employees are not on board with the plan then they may be unable to offer Massachusetts small business health insurance or may be unable to offer health coverage at an affordable rate.

Usually companies offer either a managed care plan or indemnity plan to their employees. Often times they make a mixture of the two to give the employees a better choice. The more choice an employee has the more likely he or she will choose to opt-in to the Massachusetts group health insurance plan.

Companies Benefit from Offering Small Business Health Insurance in MA

While there are several benefits to having health care coverage as an employee, an employer also benefits from offering Massachusetts small business health insurance. They can use their group health care plan as an advantage to woo potential job candidates away from their larger competitors. A small business in Boston or Springfield can attract a higher quality of employee if they have more resources for that person.

Companies may also use the amount they expend on premium rates for Massachusetts small business health insurance and Health Savings Account (HSA) contributions as a tax write off. This helps them be better able to afford a larger contribution to make their Massachusetts small health insurance plan even more appealing.

One of the greatest benefits of Massachusetts group health coverage though is the fact that companies are helping more people receive health coverage. Massachusetts group health insurance is automatically extended to an employee’s spouse and/or dependants. This may not seem important, but it is because some independent and family plans will not cover certain spouses and dependants based on their history.

Types of Massachusetts Small Business Health Insurance

There are different types of coverage to choose from when it comes to Massachusetts group health insurance. Managed care can be more affordable, but it can also be more restrictive. There are independent options for Massachusetts small business health insurance, but it may be more restrictive to who it applies to, so it is important to know your options.

Health Managed Organizations (HMO) can receive a negative reputation because they are the strictest of the managed care plans for Massachusetts. This type of plan requires that employees receive medical care from a specific healthcare provider in order to receive full benefits. There is no circumstance that allows an employee under an HMO plan to receive benefits if they go outside of the network. They must also be referred to specialist by a primary care physician from within the network.

The upside to this type of group health coverage though is the price. It does not cost much to visit a doctor, usually a copayment equivalent to the cost of two value meals will suffice. That makes it appealable, but only to small business employees who do not require greater flexibility.

For employees wanting more flexibility than an HMO group health plan can provide, companies may want to look into a Preferred Provider Organization (PPO). This allows employees to receive benefits outside of the network, though it must be at the referral of a primary care physician. The Massachusetts group health insurance coverage that an employee will receive will also be decreased, so they may be responsible for more out-of-pocket expenses.

A PPO Massachusetts group health insurance plan uses coinsurance, which means that employees will have a deductible. A deductible is the amount the individual pays before the group health insurance provider will take over the remaining cost of the bill. To help curb the costs, small business employees can choose a higher deductible and in turn receive a lower premium rate to keep more in their weekly paychecks.

A managed care that offers even greater flexibility for employees is a Point-of-Service (POS) option. This allows any doctor, regardless of network, to be a primary care physician. Referrals are no longer necessary, but if one is received to go outside of the network, then the employee can receive full benefits. This means that it will not be as restrictive for employees under this type of small business health insurance plan in Massachusetts.

If a referral is not received and an employee goes outside of the network, they will still be covered by their Massachusetts group health insurance but not to the full extent. This could be seen as a negative, but referrals by a primary care physician can even this out easily. In addition, the cost of a POS plan can be lowered when employees choose a higher deductible.

Employees wishing to avoid the managed healthcare system all together can choose an independent plan. This can be more costly, but it will offer the most options for an employee in need of medical attention. One downside to this plan is that it may not be open to an employee’s spouse and/or dependants. Independent healthcare insurance plans can be more restrictive based on medical history than a Massachusetts small business health insurance plan can be. This can exclude some family members and add cost to the overall system.

Finally, employees may choose to participate in a Health Savings Account (HSA). Put simply, this is just like any other savings account. A percentage is taken out of the paycheck each week and put towards the savings account. This money can be used to pay for routine medical expenses such as checkups and physicals. Companies usually add to the savings account by using a participation match. This avoids the premiums and deductibles, so employees can do more with their standard Massachusetts small business health insurance.