A small business with two to 50 employees can partake in the wonderful world of group insurance. Group insurance manages to connect groups of people under one expansive policy. There are a few regulations involved with group insurance that have dramatically changed the landscape of how insurance companies organize and price their packages.
Group Medical Insurance is almost always used for small businesses. The main rule for small businesses is that if they provide an insurance option for one full-time employee, they have to offer it to everyone. The rates of the insurance could go down if, for example, the employer has individuals with solid health records. The same rule applies to part-time employees, which is 30 hours a week or less. It is possible for a company to offer Group Medical Insurance just to their full-time employees, and not to the part-time. Notably, if one part-time employee is covered, they must all be.
There is also a stipulation taken further by the Affordable care Act. In short, an insurance company can deny coverage based on pre-existing conditions. It is perfectly legal and fair for an insurance company to charge a higher rate given pre-existing conditions, but they cannot be denied. It is worth mentioning that the Affordable care Act is dramatically limiting how insurance companies review past medical history.
There is also a rule stating that freelancers and self-employed agents are also covered under group coverage. The label is under the small group market, which is similar to individuals who have close family members who would be subsequently covered. The rule for self-employed agents varies by state. Reach out to website to review the standards of insurance for the state.
The Affordable Care Act has enforced new and important standards in insurance coverage. For example, there will be no outstanding penalties for a company with less than 50 employees as per the Health Coverage Guide Online. Group packages are not an unnecessary evil in a small business. When organized properly, they can add an amazing value to dedicated employees. They can also be a reasonable cost to protect the company’s most valuable asset- their people.
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