Small Business

Most health insurance providers categorize their group policies by size; the smallest group category is for businesses that have two to fifty people enrolled in the program.  Most insurers also don’t like this sort of coverage, because the risk is spread over such a small group of people.  Many states have passed laws that demand health insurance be provided to this market segment by any health insurance company licensed in the state.

Managed health care companies present their small business clients with a “portfolio” of options.  Within the portfolio is an assortment of policy choices regarding how the employer contributes, and what plan options the employee will have.
 
Often health insurers will have a threshold for participation with a small business health insurance plan.  Some will require that a high percentage of all employees must elect to participate in order for the plan to take effect.  An additional requirement often on the table is that at least one, or two, or five employees must select one of the health plan options in order for that particular option to be available.

Within these parameters, a small business owner can work out what his contribution should be.  The employees determine what sort of plan they would like to have and what they can afford.  The medical plans themselves can range from a standard HMO to comprehensive PPO coverage, but the rates for health insurance with a variety of treatment options tend to be higher than the rates available to larger businesses.