Plans generally have deductibles and coinsurance requirements although the number of plan options varies widely from plan to plan. One additional benefit of most group health insurance plans is individuals cannot be denied coverage because of preexisting conditions (provided they pay their required portion of the premium).

Tip. Work with an experienced agent to explore all your options. Attracting and retaining top talent necessary to keep your business moving forward is directly related not just to the salary, but the benefits package as well - which includes the health insurance coverage provided.

When reviewing your options, if you're looking for the most cost-effective plan that still provides a competitive benefits package to attract potential employees, be prepared to invest some time.

Preferred Provider Organizations (PPO) - In this type of plan, the plan provider has arrangements with hospitals and physicians (the network) to provide coverage for the employee at a reduced cost. A co-pay is usually required, and even if an employee chooses to see a physician out of the network, the plan will usually cover a portion of the cost.

Health Maintenance Organization (HMO) - This plan provides a network of hospitals and physicians similar to the PPO, but this plan is different when it comes to the amount employees are required to pay. Often, there is no co-payment required (or a very minimal payment required). However, if an employee sees a physician out of the network provided by the HMO, the employee would likely pay 100% of the cost.

Fee-for-Service Coverage - These plans allow the employee to see any physician or hospital and receive partial payment. Most companies offer an 80/20 plan which translates to the plan paying 80% of the bill and the employee paying 20%. Like with most plans, only services that are considered medically necessary and specified in the plan are covered.

The most important point to remember when considering these plans is to work with an experienced agent that can provide options from several different insurance companies. And don't forget to ask about the financial strength of the companies you're considering. While the benefits provided by the plan are important, if the company providing the plan is financially distressed, it might not be able to meet its obligations when you need them.