Group Health Insurance for Your Business
Are you looking for health insurance for your business? Heidi Olsen Insurance has been helping businesses find great solutions to their health insurance needs for over 20 years and has received many prestigious awards for quality of service and the amount of businesses insured. Give Heidi Olsen Insurance Services a call today
to help you find the right solutions for your business!
What is Group Health Insurance?
Most employed people under the age of 65 have health insurance through their employer as part of a group plan. Group Health Insurance
is defined as health care insurance that covers a specific group of people, typically those working for a common employer or members of a common professional group. Companies and organizations are able to take advantage of better rates
by offering group coverage to their employees or members. They also enjoy guaranteed issuance of coverage, meaning that they are guaranteed to be able to purchase health insurance for their group, regardless of medical conditions. Before the Affordable Care Act, that starts January 1, 2014, groups were medically underwritten and could be charged a 20% variance in premium depending on the health of the group participants. Going forward, there will be no variance in premium depending on health and no health questions will be asked.
Benefits of Offering Group Health Insurance
Once a particular employer has a group health care plan in place it is protected by the Health Insurance Portability and Accountability Act or HIPAA. This is a staple of group health insurance in America and dictates that all participants in an Employer’s Group Health Plan are ensured of coverage regardless of any current or previous health conditions. Additionally, since health care coverage rates are renegotiated each year based on the previous year’s health care costs for that group (this changes in 2014), many employers offer wellness programs in order to keep their employees in good health and thus keep rates low. In many cases employees who participate in wellness programs are eligible to take advantage of reduced monthly premiums. It is anticipated that groups will continue using wellness programs even though they may not receive a lower premium because of the new health care law, these programs do have a strong impact on overall employee health. They have been proven to increase employee health and effectiveness and reduce the number of sick days taken by employees.
An important element of group health insurance plans to keep in mind is the waiting period that is involved with almost all of them. There are two main types of waiting periods associated with group coverage.
- The Employer Waiting Period is the most common type. It is the period of time that new employees are required to wait before being eligible for health care services under their employer’s group plan. The employer waiting period is typically 90 days and is implemented so that new hires do not take advantage of insurance coverage in order to pay a major medical expense and then immediately leave the employer.
- The Pre-Existing Condition Exclusion Period is for participants who have been diagnosed with a medical condition and have had that condition at least six months before applying for coverage. The amount of time associated with this type of waiting period is at the discretion of the insurer and can range anywhere from one to eighteen months.
Do Group Plans Have Deductibles?
Group health care plans always include a schedule of benefits detailing the coverage of the plan and the costs involved. There is typically a deductible involved with group plans which is the amount of a given medical expense that the participant is responsible for paying before the insurance company provides payment for the balance. The amount of the deductible is dependent upon the specific plan that the employer or group leader chooses for the group and varies widely. The best way to determine if a group health plan is best for your business or organization, and to get the process under way, is to talk to Heidi Olsen, your local Health Insurance Professional.
Give Heidi Olsen Insurance a call today to find the solution that is right for your business!