Small businesses group health insurance can come in a variety of packaged plans and cover the medical needs of a small business's employees and owner. Families of employees and business owners may also be offered the discount medical insurance coverage that accompanies this type of package. Providing coverage for employees can be a great addition to the entire employment package offered to potential workers and can provide a blanket of security knowing that their medical needs will be financially met. Also, this extra benefit may be enough to entice current workers to continue with their current employment instead of searching for so-called greener pastures. With small business group health insurance, the employer is not only taking great care of his or her employees, but also may find tax benefits as well.

A small business is generally defined as having at least two, but not more than fifty, full time employees. Small businesses group health insurance is a much less expensive form of health coverage than a traditional individual plan because these rates are based on the group's financial risk. The costs of these risks are spread throughout all members using the policy. The rates are generally determined by factors including the age statistics, health status, and the medical risks of the specific occupation.

Different states have different policies and laws concerning coverage, but all states offer protections against discrimination. Owners and operators may find more information on these small business group health insurance guidelines online through their state's department of insurance. Also, most states' departments of insurance offer additional information on obtaining appropriate policies in their states. There is usually a complaint index for review as well. Owners or managers should thoroughly review the complaint index and also check with the Better Business Bureau before committing to any small business group health insurance provider for their companies. Experts also suggest that owners research several providers and policies to be sure they are getting the best coverage at the best price.

"Small businesses group health insurance is a much less expensive form of health coverage than a traditional individual plan because these rates are based on the group's financial risk. The costs of these risks are spread throughout all members using the policy. The rates are generally determined by factors including the age statistics, health status, and the medical risks of the specific occupation."

This statement is not accurate. Almost any group insurance will be more expensive than an individual plan, but you individually may pay less if your employer is paying a portion of the amount (often 50-75%). If you want to see the true cost of the insurance, just ask what you would have to pay using COBRA continuation of coverage.

The advantage of group insurance (and the reason it is more expensive) is that it is guaranteed coverage. The insurance company must accept everyone in the group, regardless of health conditions. Insurance companies are allowed to increase rates (rate up the group) to certain levels, and also increase those rates annually by as much as 85% in many states. That is why you see so many companies group plans change every few years, they are getting back to the introductory rates.

The downside to individual policies is that you may get rated up individually if you are not healthy, or you may get denied entirely, leaving you with your only alternative to go to the "State High Risk Pool", which is generally poor coverage at a high cost.

For many individuals however, an individual policy will save them as much as 40-60% over group rates (or COBRA). This is one reason you are seeing more and more companies offering their employees a cash reimbursement plan (HRA) which allows the employer to participate with benefits, yet the employee is in charge of the insurance he has, or the way he spends that fixed dollar amount.

@ Dru

Too bad the CBS Evening News with Katie Clueless doesn't bother to accuately explain that to the spoon fed masses.

Click HERE for Katie's Theme Song.

__________________
Gary Spicuzza, *SAFE
Copyright 1956
No Rights Reserved
*Self Appointed Financial Expert

Shamelessly ^bumping^ this thread to the top of the message board because I like Katie's theme song above.

Where's Client#9 when you need him?

__________________
Gary Spicuzza, *SAFE
Copyright 1956
No Rights Reserved
*Self Appointed Financial Expert