Insurance Options

Small businesses can choose from two primary categories of insurance – group and individual health insurance. Breaking down both, here is what they can provide employees, depending on what the company is offering.

Individual

These plans are bought by employees in order to cover themselves and their families if they have them. Anyone can apply for this type of insurance, which is more likely to be offered by smaller- to medium-sized businesses that cannot cover the costs of a group-insurance plan. Employers can also sign up to cover themselves with this type of insurance. In 2014, no company can deny anyone from getting coverage through their companies based on their current state of health. There is also a tax subsidiary for employees and businesses that are taking part in these individual insurance plans. This is also available for the self-employed. There might also be a health-care reimbursement plan or allowance plan for enrollees, as well.

Group

This is a coverage type that is sponsored through the employer. The cost of the insurance is split between the employer and the employee that signs up for the coverage. It can also be extended to the employees’ dependents. In certain states, this type of insurance can also be used by the self-employed. The employer is the one that selects which plan they would like to offer its employees.

Both types of insurance provide coverage, but it might be different for everyone due to individual circumstances. If you want something that is customizable and can provide you with options while also working with your budget, then individual plans might be the best. On the other hand, if you’re thinking of going with something that just lets you know a set block of what is offered, group insurance might be the choice for you.