Group medical insurance is one of the best ways for Americans to purchase medical coverage at a reasonable cost. This type of coverage is typically offered through an employer, and may cover an individual, their spouse, or their entire family. The level of coverage provided by the employer-sponsored health care plan will vary depending on a number of factors including the type of business, its size, as well as what employees are willing to pay for coverage.
In addition, the group medical insurance quotes offered to those in the plan will be significantly affected by which insurance provider the company ultimately chooses, and what they offer in terms of both service and coverage. Although group medical insurance may not pay for all of the health care bills incurred by an employee, it can go a long way toward minimizing the financial damage should a traumatic event arise.
Small Businesses and Group Medical Insurance – What You Need to Know
Many Americans work for a small business, as defined by the insurance industry, but many don”t know it. Generally, insurance companies consider any business with less than 50 employees to be a small business, and as such, the rules governing how group medical insurance quotes and what levels of coverage must be offered are different.
Every state will have slightly different laws governing the way health insurance companies must deal with small businesses, but there are several federal laws that must be followed no matter what state a business operates in. One of the most important of these is that no small employer, and no employee who works for that employer, can be turned down for coverage by a group medical insurance company for any pre-existing health care condition.
In the world of insurance, this is referred to as “guaranteed issue.” As well, group medical providers are not permitted to drop small companies unless there is a non-payment of premiums or if the company elects to leave the program.
Large Businesses and Group Medical Insurance Quotes – How Are They Calculated?
Unlike small businesses, large businesses do not have to be offered coverage by group medical insurance providers. Once a plan is in place, however, the insurer is required to cover all eligible employees of the plan, even if they have pre-existing conditions. While in a small business setting, a great deal of information is gathered from participants before a policy is underwritten, in a large business the process occurs much more quickly.
Quotes are determined by the underwriting company after they see how many employees plan to participate, as well what kind of claim history they collectively have. The fewer employees and the higher the claim history, the greater the group medical insurance quotes will be.
Finding group medical insurance that fits the needs of everyone in a small or large company is an almost impossible task, but we”re here to help. For more information on finding great group medical insurance quotes, contact us today, and let us help your business get covered.