What Is Group Medical Insurance?
Group medical insurance is typically purchased by small and midsized businesses that need health insurance coverage. Typically, businesses that are recognized by most states as small businesses have anywhere from two to 50 employees. As such, these businesses can usually qualify for many types of group medical or health insurance plans. The type of group medical insurance that can be purchased is determined by the insurance company.
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Benefits
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There are many benefits to having group medical insurance available for a small business as well as a medium- or large-sized business. Once group medical insurance is established, all employees are automatically provided insurance coverage after they sign the insurance application. This is because a group medical insurance policy provides for guaranteed issue coverage for all applicants.
Eligibility
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A small business can qualify for group medical insurance by meeting certain eligibility requirements. Requirements can include proving that your small business is legitimate and has been in business for a certain period of time. This can be done by providing tax returns, a business license or other documents that may be requested.
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Requirements
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Most types of group medical insurance plans do not have many requirements once an application is approved for group insurance. One type of requirement that may exist, depending on the insurance company and type of policy, is a waiting period. A waiting period for may be required for new members who have a pre-existing condition and have been without insurance coverage.
Plans
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An insurance company will have many types of health plans available for a business to choose from. These types of plans are typically standardized and cannot be customized. The amount of the premium for each type of plan depends on the rates that are in effect.
Rates
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Insurers base the amount to charge for group medical insurance plans on the rates that have been calculated for each business. The maximum rates that are charged for a group medical insurance plan are regulated by individual states. Many insurers ask questions about health on applications for coverage to determine whether they need to increase the rates being charged for the group medical plan.
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