How Many Health Insurance Options Do Employees Really Need
Allowing employees to choose between an HMO and a PPO
Two health insurance options are usually sufficient for most
start-up organizations. Give employees a choice between a health maintenance
organization (HMO) and a preferred provider organization (PPO).
Although HMO and PPO monthly premiums are roughly the same, each plan has
fundamental differences that can influence an employee's choice. HMOs have
lower out-of-pocket costs and no deductibles as long as you use providers in
the HMO network. PPOs have deductibles but offer more flexibility than HMOs,
allowing you to choose from a wider selection of doctors and specialists
outside of the PPO network.
Allowing employees to choose between an HMO and a PPO gives them the freedom
to pick the plan that best suits their needs. It also shows them that you care
enough about their individual situations to provide them with two different
health insurance options.
Source: http://www.allbusiness.com