Small Group Solutions

In the world of medical insurance, the term small group generally refers to groups of between two and 50 eligible participants. These types of healthcare plans are used by small business owners who wish to offer their employees some form of health insurance.

In the state of Arizona, the Small Business Association has worked consistently towards ensuring that small business owners are provided with a range of options that are fair and cost-effective, and there are several state laws concerning the provision of healthcare plans for small businesses.

• Insurers must offer small businesses with between two and 50 eligible individuals the same healthcare plans they offer to larger employers
• Insurers may not cancel insurance if one member of the group becomes ill, providing the small business maintains a minimum number of eligible participants
• In companies with fewer than 50 eligible participants, the difference in premium costs on the basis of health or age of individuals is capped
• Employers with fewer than 50 employees (including the self-employed) are eligible for coverage via a state-run program

Most major health insurance providers in Arizona can provide a wide variety of small group solutions, with options similar to those offered to individuals. Small business owners have considerable flexibility in choosing healthcare plans, with options available for dental, disability, prescription drug and vision coverage in addition to traditional benefits.

Trying to find an affordable small group health insurance policy?

Managed Care HMOs and PPOs

Managed care plans such as HMOs and PPOs are typically the most affordable types of insurance available to small businesses. However, these options offer the least amount of flexibility to policy owners, as each plan includes a network of preferred providers.

HMOs are the most restrictive and least expensive of the two types of plan, as policy owners are covered only when they visit network providers. PPO plans offer a higher degree of freedom in choosing which healthcare providers to visit, but are slightly more expensive than HMO plans.

POS and Fee-for-Service Plans

Plans that provide much more flexibility than managed care plans include point-of-service plans and fee-for-service plans. Both of these offer much more freedom of choice in terms of selecting healthcare providers; however this freedom comes at the cost of increased deductibles or premiums.

Health Savings Accounts and Self-directed Health Plans

Health savings accounts (HSAs), which work in a similar fashion to investment retirement accounts (IRAs), are increasing in popularity due to their flexibility and extensive coverage. Self-directed health plans offer the greatest level of freedom for consumers, with a focus on preventative healthcare.

Request an Arizona small group health quote and compare options and rates.