Information on Group Health Insurance
Of all the Americans who currently have health insurance, over 60% are covered by a group health insurance that is provided by their workplace. Group health insurance plans can vary from state to state, but by getting your health insurance through a group health insurance plan offered by your employer offers you many advantages over trying to find insurance on your own. For many employees, having access to a good group health insurance package is one of the most important benefits that they receive from their workplace. Every year, companies in the United States pay billions of dollars to be able to provide quality and affordable group health insurance for their employees who want it. In fact, the money earned by group health insurance makes up most of the income for health insurance companies.
Because the cost of medical care and prescription medicine has risen so much over the last few years, many employers are having to pay more for group health insurance plans for employees. Faced with all the costs involved in offering their employees group health insurance, some companies are having to cut back on the health care benefits they offer for employees. Because of this, many employees are now having to pay more money for their medical care and prescription medicines. In an attempt to cut costs to the company, many employers now require employees to pay more of their monthly group health insurance premium. Some employers are also requiring employees pay for the cost to cover their dependents with the group health insurance plan. Each year, the number of companies that pay all of the premiums for their employees' group heath insurance is decreasing.
The Benefits of Group Health Insurance
Because the cost of health care is so high these days, there are many Americans who stay with a job they may not like simply to keep their group health insurance coverage. Some people have pre-existing medical conditions that might not be covered if they switched to another group health insurance plan with a different employer. It is not unusual for new employees at a company to have a waiting period before their group health insurance coverage begins with the new job. So, they would have a period of time when they did not have any medical insurance at all if they began working for a new company. Companies know that there is a definite link between offering good group health insurance to employees and not having a large turnover of employees. Especially in these hard economic times, employers understand that many people need and want affordable group health insurance. With this in mind, many companies today are trying to save money on the cost of group health insurance, but make sure they can offer group health insurance coverage that is attractive for employees.
Options and Rates for Group Health Insurance
According to most state regulations, group health insurance premiums are for companies that have two or more employees on staff. Each state has its own requirements for companies to meet the requirements for group health insurance, depending on the size of the company and the type of work they do. All companies, however, can get group health insurance quotes in order to find out all of the options available to them for group health insurance.
One of the factors taken into account when determining the cost of a group health insurance plan is the number of employees who will most probably be covered at any one time. This numbe4r is also taken into account when figuring out just how much it will cost per employee for group health insurance coverage under the insurance plan.
A small business is generally defined as a company that has anywhere from 2 to 50 employees. A business of this size is usually eligible for small business group health insurance coverage. Larger companies, some with thousands of employees, often have group health insurance plans that are designed specifically for them and their own employees. Some of the coverage options available to large companies are not available for the smaller businesses. There are even some large companies that do what is called self-insuring. This means that they put up a large bond with the state and use this money to pay medical claims, through the group health insurance company. By doing this, companies assume the risk of any large medical claims that might come in and they basically act as the insurer for their employees.
There are three categories that the majority of health insurance providers use to group companies for insurance. These are small group, mid-sized group, and large group. The qualifications required for insurance coverage varies from state to state, but in general, these are the three groups that a company offering group health insurance to its employees will fall under.
Group Health Insurance for Small Groups
In general, a small business has between 2 and 50 employees. However, the definition of what constitutes a small business can vary from state to state. Companies can qualify for a small group health insurance plan as long as the company meets the requirements for being classified as a small business. No matter what the state of health of its employees, a company cannot be denied group health insurance coverage because of the state of health of any of the employees.
Group Health Insurance for Mid-sized Groups
If an employer has more than 50 employees, they are put into the category of a mid-sized group for group health insurance. Each insurance company can decide on what they consider to be a mid-sized company for insurance purposes. Mid-sized group health insurance is different from small group health insurance because there are more options available that the company can choose from to offer to their employees.
Group Health Insurance for Large Groups
Different insurance providers have their own definition of what they decide is a large group for insurance purposes. The advantage of large group health insurance coverage is that it offers more options for health insurance coverage. Some large companies even tailor a group health insurance plan specifically for the needs of their employees. Because of the size of the group covered, there is less risk to the company, and there is also less of a chance that the company will be denied coverage.