Group health insurance is available to all registered business entities. From sole proprietors to large corporations with hundreds of employees group insurance can be a valuable part of your business.
For a free consultation on the benefits available to your business please call:
Considerations
When Purchasing Business Health Insurance
- The
employer is required to pay a minimum of 50% of the employee-only
cost; they do not have to contribute anything for dependent coverage.
- In
the small group market (less than
50 employees) , the employer also
makes the determination about:
- The
classes of employees eligible for insurance.
- The
number of hours an employee must work to be eligible (24-40
hrs.)
- The
length of time between the hire date and when the employee can join the
plan (i.e., 30 days, 60 days, one
year) .
- You
must be able to prove you are a viable business. Insurance companies
will require tax documentation. Cick
here to see what documents will be required for your business.
Business
Group of One
If you
are a sole proprietor or have no employees besides yourself and don't plan
to hire any employees in the near future, you can make the choice between
group and individual plans. If you have no health issues, individual coverage
is probably the best way to go. If you do have some health issues, then there
are certain times you are guaranteed coverage on
group plans. The following qualifiers apply if you want
to apply for business group of one plan.
- You
must be in business for one year and make a profit.
- You
are guaranteed coverage if you apply within 31 days of the one-year anniversary
of your business.
- You
may apply for insurance within 31 days of your birthday.
- If
you lose other coverage (through a spouse's employer, for example), you
are guaranteed coverage if you apply within 31 days of the notice of that
loss of coverage. ( Note
, all windows for application require that you have been in business
for at least one year; the birthday rule and loss of coverage rule do not
apply if you have been in business less than one year.)
Glossary:
Premium:
Monthly cost employer/applicant pays to the insurance company.
Policy
: A written contract or certificate of insurance.
Underwriting
: The process that begins once the insurance company receives a complete
application including the first month's premium from the applicant. During
this process the insurance company determines whether or not they will insure
the applicants and/or determine the rate for a group.
Dependent
: Immediate family members.
Classes
: Hourly vs salaried, management, owners , etc.
Employee-Only
Cost : The cost of insuring an employee if they applied as an individual
with no dependent coverage.
Guaranteed
Coverage : The insurance company will issue a policy; however, the
rates may be higher than standard rates.
Business
Insurance |
Individual/Family
Insurance |
| Definition:
One
or more employees in the business can be insured on one policy.
Pros:
- Asset
to help recruit and retain employees.
- No
underwriting other than rate determination.
- All
employees accepted regardless of health condition.
- Maternity
coverage provided.
- Preventive
care covered.
Cons
:
Premiums normally higher than individual insurance.
|
Definition:
One
person and/or his or her dependents can
be insured on one policy.
Pros:
- Premiums are normally lower than group insurance.
-
Many plans to choose from.
-
Family dependents included on plan.
-
The policy is not dependant on employment.
Cons
:
- Applicant
and dependents must medically qualify.
-
Underwriting process is approx. 2-6 weeks.
|