Compare HMO quotes and choose the best plan for your business needs

The provisions of HMO coverage varies by provider. Typical HMO quotes will include an 80/20 or 70/30 policy, meaning that the HMO pays 70% to 80% of the bill and the covered person is responsible for the remaining 20% to 30%. Additionally, the majority of HMO plans require a yearly deductible for each individual and for the entire family. Go with an HMO plan that gives your employees multiple options that will fit their physical and financial needs. Keep in mind that, if you're paying the premiums for your employees, you need to decide on a plan that your business can afford as well.

I recommend: The most widely used HMO health insurance providers are Anthem (also known as Blue Cross and Blue Shield) and Kaiser Permanente. For more options, visit Business.com for a list of other HMO providers.

Weigh the pros and cons of HMO health insurance

Before you settle on providing HMO health insurance to your employees, be sure that the benefits outweigh the disadvantages for both your staff and your business. The major benefits include healthcare costs at a discount (as mentioned above), as well as less hassle with medical bills. The cheaper premiums also mean less cost to your business. However, your employees must use HMO doctors within the established network. Additionally, employees can't receive treatment from a specialist without a referral from their primary care physician, which can be a hassle for someone with an illness such as cancer.

I recommend: Compare all of the available types of health insurance, such as Preferred Provider Organization (PPO) or Point of Service (POS) managed care plans, before making a final decision. Read Financial Web's article comparing HMO and PPO plans. Visit wiseGEEK for information on POS healthcare.

Obtain a list of providers and help employees choose a PCP for their HMO

Once you decide to go with HMO healthcare, you need to find out who the in-network providers in your area are. Additionally, HMO groups require insureds to select a primary care physician (PCP) when they establish their health insurance plan. It is important to look at the PCP's accepting new patients in your area prior to signing up for coverage so you can inform your employees about available doctors. Otherwise your employees will simply have to randomly choose a PCP from a list that the insurance company provides.

I recommend: The American Academy of Family Physicians provides detailed information on what constitutes a primary care physician. Ask friends and family for referrals, as most insurance companies now require some form of PCP for those they insure. Additionally, most HMO insurance providers, such as Anthem, have a provider directory on their website to aid you in your decision on a PCP.