By ELIZABETH E. BATES

Despite the downturn in the current economy, consumers are still purchasing business insurance of all types at record rates, according to Angie Brady of Blue Cross Blue Shield’s regional headquarters in Albany, NY.

It’s a trend that local insurance agent Steve Rabideau, owner of The Rabideau Agency, Inc. in Center Rutland, has also noted. Rabideau’s company has been in business for more than 20 years. During that time, Rabideau said he has seen a variety of trends in the industry.

“Business is booming, because consumers are more conscious of insurance and more aware of what it covers,” he said.

That statement appears to mirror national trends. Today, business owners can select from a variety of insurance products for their business.

Consumers are now faced with a virtual a la carte menu of insurance offerings. One can choose a flexible spending account (FSA); health maintenance organization (HMO); health savings account (HSA); health reimbursement arrangement (HRA); indemnity and traditional coverage; point-of-service (POS); or preferred- provider organization (PPO).

Each offers the consumer a different approach to insurance, said Rabideau. For instance, an FSA allows consumers to save money using pre-tax dollars for specific or eligible medical and dependent care expenses. Members fund their FSAs with contributions directly out of their paychecks.

An HMO is a health care system that provides a comprehensive medical service to a voluntarily enrolled population in a specific geographic area, usually in return for a fixed prepaid price. Consumers must choose doctors, pharmacists and other health care professionals from a predetermined list of eligible service providers.

The HSA approach allows members to save money in tax-advantaged accounts. Qualified contributions are tax deductible, and funds that are withdrawn to pay for qualified medical expenses are tax-free.

With HRA accounts, employers reimburse employees for a portion of their eligible family members’ out-of-pocket medical expenses such as deductibles, co-insurance and pharmacy expenses. Traditional insurance, also known as indemnity or fee-for-service, allows members to select any provider; however, benefits are maximized when using a participating provider, he said.

POS coverage is a health care option that allows members to choose medical services whenever needed. In addition, one can go to a provider within a given network or seek medical care outside the network.

Finally, PPOs offer members a health care benefit arrangement designed to supply services at a discounted cost by providing incentives for members to use designated health care providers who contract with the PPO at a discount. PPO members can also receive payment for services by health care providers who are not part of the PPO network.

Rabideau had this to say about the various types of business insurance plans that are available: “Every situation is different; there is no one risk that is exactly the same.”

He stressed that when clients purchase insurance, they need to tell him exactly what they are looking for.

“Insurance is not a serve one, serve all type of business,” he said. “Each policy is tailored to the needs of the specific consumer.” ?