Small business employers are often reluctant to offer their employees comprehensive health benefits because of the costsand administrative expenses attendant to the traditional indemnification mode of health insurance. The purpose of this research is to produce a guide that will advise small business employers of alternative options, such as health maintenance organizations, and of contractual arrangements, such as preferred-provider organizations; these could make health insurance more affordable and less administratively cumbersome. In addition to a detailed discussion of alternative modes of coverage, the guide will suggest factors that may be helpful in making an appropriate choice.increased competition and innovation are expected to bring about changes in the health care marketplace. Some organizational models will disappear; others will adapt. The guide concludes by discussing anticipated changes which may effect the small business employer's future choices. Bibliographic references and suggested additional sources ofinformation are appended.
