Group health insurance is when an employer is able to offer health insurance to eligible employees as a benefit for working with that company. Most employees in the US get their health insurance in this way.
The type of coverage your company receives as well as the premium rates will differ depending on what state you are in as well as the size of the company. Small employers and large employers have different policies with different regulations and rules.
Small Employee group health insurance cannot turn anyone down for health insurance even if they have a pre-existing condition. This is called a guaranteed insurance. The insurance plan for small employers also needs to be renewed every single year. However these small employer plans will look over the employees medical conditions and if you have a pre-existing condition the insurer may decide not to provide coverage for that issue.
The insurance companies tend to use medical underwriting to determine the insurance premium rates. Some insurance companies may also use community rating or modified community rating to determine the premium rates. Medical underwriting again uses your medial history to determine the coverage for each company’s insurance policy.
Large company group insurance works in slightly different ways as they can refuse to provide insurance to the company depending on the employees. They cannot single out a specific employee, usually with a pre-existing condition, as once the company has the insurance it must allow any employee to join.
The premium rates for large company group health insurance and are calculated based on the companies claim histories and the types of employees that participate in the health insurance. Employees will not need to provide their medical history when joining the insurance plan.
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