What is group health insurance?
Group health insurance comes in different forms and is available for groups of many sizes.
Generally speaking, Group Health Insurance can be divided into three groups:
- Small Group Insurance
- Mid-size Group Insurance
- Large Group Insurance
Small Group Health Insurance:
Group health insurance is available to different size groups, depending on the size qualifications set by your particular state. A business usually from 2 to 25, or an association of five or more people can purchase small group health insurance. As long as the group meets the qualifications as a small business, this type of insurance is typically guaranteed to be issued.
Mid-Size Group Health Insurance:
If a business or group has over the maximum number of persons to be considered a small group, then the mid-size group health insurance class comes into play. Requirements that determine if the group falls into the mid-size class, are made by the individual insurance carriers. Mid-size group health insurance plans not guaranteed to be issued, however, they do offer broader plan options.
Large Group Health Insurance:
Insurance carriers will make their own decision as to when a group falls into the "large group" class. If your group size falls into the large category, and more plan options are desirable, then large group health insurance plans are the answer. Plans for large groups can be customized giving more flexibility of plan options, however, unlike the small group insurance plan, it is not guaranteed to be issued. However, since more people are insured, the risk ratio for the insurance company is lessened.
Group Health Insurance FAQs
Q: Who may participate in Group Health Insurance?
A: Group Health insurance is available to small to large businesses, societies, business associations, fraternal organizations, sports leagues, alliances and trade associations, and not profit groups.
Q: What are the benefits of group health insurance?
A: The rising cost for medical treatment makes having health insurance a major "must have" for people today. Costs for group health insurance may be considerably lower than individual health insurance, as more participants means lower insurance premiums.
Availability is another benefit, since many employers are no longer offering their workers company sponsored plans and individual health insurance plans can be very expensive.
Q: Things to look for when purchasing group health insurance?
A: Cost should not be the only consideration: sometimes the least expensive may not provide the proper coverage for your groups needs, and the highest may be over-kill and offer services that your group members might not need. Research various companies before making a decision.
Q: How can I evaluate the health of an insurance company?
A: Check out their claim payment history with medical providers, such as doctors and hospital sources. Check with the local Better Business Bureau to see if any complaints have been registered against the company, and with the state insurance board to make sure they are a legitimate licensed insurance provider.
