Large Group Health Insurance

Large Group insurance usually refers to the coverage provided for a large business with 51 or more employees who are eligible for employee benefits. Insurance coverage at these large scales is often broken into groups, or “tiers”, with options ranging from a two-tier policy (with one coverage plan for individuals, and another for families), up to a four-tier option (with many different levels of coverage, including plans for individuals, married couples, single parents, etc.).

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Health Insurance Choices for Large Groups

Most insurance companies offer the typical options (HMOs, PPOs, and POSs) to large businesses and their employees. However, these various plans may be revised somewhat in order to better fit the large business’s needs. For one thing, the overall rates offered to such a large number of policy holders will be lower, thanks to the volume of policies being sold. Additionally, because of the wide range of needs and requirements that exist in such a large group of employees, “add-on” benefits to the health insurance plan, such as vision or dental insurance, will usually also be offered at discounted rates in a “package deal.” The main disadvantage large group insurance has when compared to individual or small business insurance is the fact that, with such a huge number of employees to be covered under a single plan, the flexibility of choosing among the different options available can be limited, resulting in a situation where the individual employee must take the one and only insurance plan that is offered, rather than choosing a plan that suits their specific needs.

Large Group Insurance – Benefits and Drawbacks

One of the key differences between large group insurance and small group insurance that it is important to be aware of is that the “guaranteed issue” federal law (the law that states that no small group applicant that can pay for their insurance coverage can be denied a policy offer because of preexisting medical conditions among its employees) does not apply to large businesses seeking an insurance plan. An insurance company is permitted to refuse to offer coverage to a large business if the applicant business has an undesirable claims record in the past. However, unlike small business coverage, once a policy is offered, no specific individual can be investigated or denied coverage of a specific ailment, or in any other way singled out from the large group coverage.