Here’s what to know and understand:

Insurance Providers Use Physicians and Hospital Networks to Reduce Costs of Plans

Health care costs vary dramatically between physicians and hospitals. Some are inexpensive, and others are expensive. Health insurance plans that include low-cost providers charge less than those that include high-cost ones.

By enrolling in a health plan that excludes expensive doctors and hospitals, employees can get comprehensive benefits at a modest cost.

Small Employers Can Offer a Range of Health Insurance Plans to Meet Employees’ Needs

Employees have different needs when it comes to health insurance. Some employees never visit the doctor and only need catastrophic coverage. Others have serious illnesses like diabetes and need a health plan that can cover most of their needs with little contribution from them. The good news is that an employer can tailor insurance plan benefits to meet the needs of the company as well as those of the employees.

Some employers can offer a single plan to every employee. Others can offer single HMO or PPO plans. Still, others can offer four to six different plans and allow the employees to choose the one that fits their needs. We understand that offering five to six plans can get quite overwhelming for employees, but insurance providers allow small employers to offer 15 or more plans while minimizing the cost to the employer.