| Most employees consider healthcare coverage the | | | | visit.An HMO, or health maintenance organization, |
| most important of all employee benefits. At the | | | | forms a network of doctors and hospitals, and |
| same time, it is an attractive benefit for many | | | | employers pay a set fee per employee enrolled in |
| employers too. By pooling risk, business houses can | | | | the plan. HMOs cover visits by members only to |
| buy health coverage much more cheaply than | | | | doctors and hospitals that are part of the network.A |
| individuals. Tax benefits also ensure that healthcare is | | | | PPO, or preferred provider organization, is a group of |
| a very cost-effective way to compensate | | | | physicians and hospitals that provide health care at a |
| employees.There are three popular health benefit | | | | reduced cost to PPO members. As it imposes no |
| programs for employees: traditional, HMO, and PPO. | | | | restrictions like HMOs, PPOs have become very |
| Some employers will offer just one or two of the | | | | popular in recent years. Visits to doctors and hospitals |
| three. Other business houses, especially ones with a | | | | outside the network are, however, not fully covered |
| diverse group of employees, will opt for all | | | | and require higher payments from the patient.Before |
| three.Traditional health insurance offers flexibility to | | | | choosing health insurance, you must find a good |
| employees. They can visit any doctor or hospital | | | | broker who has a state license to sell and service |
| they want and receive coverage for any treatment | | | | contracts of multiple health plans or insurers. They |
| covered under the policy.Its major problem, however, | | | | are mostly self-employed or work for an independent |
| is cost. Premiums for traditional insurance are | | | | agency. They can typically offer products from five |
| generally higher than for other kinds of plans. It is | | | | to 15 insurers. The broker of your choice must be |
| also costly for employees, because most plans | | | | experienced in dealing with firms of similar size and in |
| require costly deductibles and co-insurance with each | | | | the same industry as your own. |