Group Health Insurance Plans

Group Health Insurance Plans

SMH Insurance Agency, Inc. located in Richmond, VA is focused on bringing you the best Small Business Group Health Insurance Plans in Virginia that fits your needs. Steven Hughes has specialized in the small business  2-50 employees’ group health insurance market since 1991.

Group health insurance policies come in various forms. In order to be eligible for this kind of coverage, your business needs to have at least two employees. Group policies allow holders or participants to get health coverage at premium rates, when compared to individual policies.

Here are the main types of group insurance plans that businesses can provide their employees:

Health Maintenance Organization (HMO) Insurance Plan

The HMO type of insurance coverage can be considered as a prepaid health plan because policyholders are paying for specific types of health services in advance via monthly premiums. HMO group health insurance policies are cheaper than other types of group insurance plans, but the health care services are limited. Moreover, beneficiaries under this plan can only get services from doctors and medical facilities that are included in the HMO list, or policy guidelines.

Preferred Provider Organization (PPO)

The limited health care services offered under HMO plans gave rise to PPO plans. Under PPO insurance plans, policy holders can enjoy more flexibility when it comes to choosing their doctors and health care facilities. Like an HMO plan, PPO’s also have a guideline or list of preferred health care providers. However, PPO policy holders can opt to use doctors or facilities that are not included in the preferred list without the risk of totally forfeiting the insurance benefits. You should be aware, though, that getting medical services from providers that are not included in the preferred list would result in more expensive co-payments and extra health service costs.


Health Savings Account (HSA)

A Health Savings Account (HSA) helps you save money on health care. By making you a part of the medical services decision process, Health Savings Accounts are designed to help you manage medical expenses and reduce the continuing raising of health care expenses.

HSA’s account funds are used to cover medical expenses before the plan deductible has been met. Unspent account balances accumulate and accrue interest from year-to-year. Unlike amounts in Flexible Spending Accounts that are forfeited if not used by the end of the year, unused funds remain available for use in later years. Once the health plan’s annual deductible has been met, coverage resembles conventional insurance, typically in the form of a preferred provider organization with little-to-no cost sharing for in-network.

Equally as important, the money you save remains part of your retirement account, even if you leave your present employer. You can also save the money in your account and grow your account through investment earnings. Funds in the account can grow tax-free through investment earnings, just like an IRA. In short, if you don’t use all the money in your HSA for medical expenses, it can accumulate as tax-free savings for your retirement.
If you are ready to start shopping, please contact us.  SMH Insurance doesn’t charge you for quotes or service. By federal law there’s never an extra premium to use Steven Hughes as your agent and get expert advice.

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If you have any questions, our friendly insurance agents are happy to assist you.

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