Small Group Health Insurance
Small Group insurance usually refers to the coverage provided for a small business with anywhere between 2 to 50 employees. The rules and regulations for small business insurance policies can vary widely from state to state, and there are also some major differences in the laws as they apply to small businesses versus large businesses.
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Options for Your Unique Small Group
As is the case with individual, family, and large company insurance plans, most insurance companies offer the typical options to small businesses and their employees. These include Preferred Provider Organizations (PPOs), Health Maintenance Organizations (HMOs), and Point of Service Plans (POSs). PPOs provide you with a list of doctors and medical facilities you can visit at a reduced price. HMOs provide you with pre-paid medical care that gives you visits to doctors approved by your plan. POSs allow you to visit any doctor you would like and require you to pay a deductible with each visit.
However, these options are specified somewhat for the small group client. Unlike individual and family plans, the rates for these various options are usually lower, due to the fact that the insurance company is selling a higher volume of policies. Also, unlike the options available to large companies, when the number of covered employees is small, the insurance companies will often allow more flexibility in coverage options and choices to the small business.
The Guaranteed Small Group Rule
The one law that applies specifically to small groups is called the "guaranteed issue" rule. This is a federal law that states that no small group applicant for an insurance policy can be turned down completely. At least some kind of coverage package must be offered to any small business who applies, and who can pay for the coverage, regardless of any preexisting medical conditions among their employees. However, in the case of small business insurance, the company providing the policy is permitted to research individual employee backgrounds, and based upon this information, the insurance company may temporarily choose to exclude certain, specific conditions from the list of what medical problems and services it will cover.
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Last Updated : Monday, November 3, 2008