Group health insurance is purchased by employers to provide health care benefits for themselves and their employees. The insurance contract is between the employer and the insurance company and the employer is responsible for paying the monthly premium to the insurance company. An employer may require a partial contribution of premium payment from the employees, which will be deducted from the payroll of each employee that chooses to enroll in the group health insurance plan. Group health care insurance is usually the best option available to persons that have the fortune of being employed by a company that offers this benefit to their employees.
Who Should Consider Group Health Care Insurance
From the perspective of a business owner, offering group health insurance to your employees is a great way to maintain company loyalty and keep your workforce healthy. In some states employers with a minimum number of employees are required by law to offer employee health benefits. More and more states are considering similar laws in order to reduce the number of uninsured residents in their state. Small employers with just a few employees can also qualify for group health insurance.
For persons that have a group health insurance policy available to them through their place of employment, choosing to enroll in this coverage typically requires little thought. This is especially true if you and your family members do not currently have health insurance. For the employee, the monthly premium will be less than you would pay through other types of health insurance, since your employer will be responsible for paying the majority of this premium. Depending on the percentage of the premium your employer pays when adding your dependents to your group coverage, this option may also be best for your family. You will need to consider the costs and benefits of this option and compare it to the options available under an individual/family health insurance plan.
How to Find Group Health Insurance
In each state there are several different insurance companies that offer group health plans. You can explore these options by requesting quotes online from many websites that specialize in health insurance. All of the insurance companies have websites that may provide details about the many different group health plans that they have available. You will also find agent or broker websites where you can complete a brief questionnaire that is necessary for providing your company with an accurate quote on group health care insurance. There are also referral services that can put you in contact with one or more insurance agents in your area that offer group health insurance quotes and expert advice.
For those that do not have a good understanding of health insurance, it is recommended that you work with a professional that can explain the many different policy terms and help you compare your options from several different insurance companies. There are many factors to consider in choosing the right group health plan that is an affordable expense to your business while providing your employees with adequate health care benefits.
To request quotes for group health care, you will need to provide the birthdates of each of your employees, as well as information for each of their family members that might also wish to be included on the policy. You will also need to know what percentage of the premium will be paid by the company for employees and their dependents. It is best to compile this information and make sure it is accurate in advance of requesting a group health insurance quote.
The Cost of Group Health Care Insurance
Group health insurance rates are determined by many factors, including plan type, age and gender of employees, geographical location and health status. Plan types range from comprehensive HMO plans to high-deductible catastrophic health plans. The more comprehensive the coverage, the greater the risk that the insurance company will have to pay claims. Since rates are based on the risk to the insurance carrier, these plans with more complete coverage will be the most expensive.
When shopping for a group health plan, you will find a vast array of plan and premium options. Naturally, you will want to find the best possible coverage for the best possible price. The best thing to do is set a budget for your monthly health insurance costs and look for the best coverage for that price.
Applying for Group Health Insurance
Once you have found the best health plan for your business, you will need to submit an employer application for coverage. Since group health insurance is guaranteed to all eligible businesses, there will only be a few health questions. Most of the questions on the application are used to determine if the company meets the guidelines for enrolling in a group health plan. Among other things, the insurance company will need to know how many employees are to be included on the policy and how long the company has been in business. Payroll records will need to be submitted along with the application in order to prove the eligibility of all persons to be added to the group plan. Only persons that appear on the payroll records, and immediate family members, can be included on the original application. An experienced health insurance agent can guide you in determining the eligibility and recorded documentation that will need to be submitted to the insurance company.
Depending on the overall healthiness of those that are to be included on your group health plan, the insurance company may adjust the rates to offset the costs that will bear when accepting a high-risk group. The maximum percentage increase is set by state regulations and will vary by state.