How to Select a Large Group Insurance Plan
A majority of large companies offer a variety of health insurance options to their employees. Companies with several hundred employees or more fall under the large group category. Premium rates and the underwriting method for large groups is different from that of small groups and those seeking individual insurance. Most large companies prefer to work with a consultant broker who guides them through the insurance selection process, assists with plan designs, negotiates rates and offerings and coordinates the application and enrollment process.
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Instructions
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Meet with your company's broker to discuss your company's health insurance needs. Your broker will send out requests for proposals (RFP), on your behalf, for insurance companies to respond and bid on your large group business.
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Review the RFP responses and quotes with your broker. Make note of the differences between your current health insurance plan offerings and the ones proposed by each of the companies who responded to your RFP. Evaluate any significant differences in benefit offerings, coverage levels and exclusions.
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Confirm that the insurers have strong provider networks where your employees live. This is especially necessary if offering HMO and PPO plans where employees must use a network provider or receive substantial discounts when using network providers. Give the insurer a list of the zip codes where each of your employees live and ask for a disruption report to show any lack of providers in those areas.
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Evaluate the premiums, plan options and provider network of each insurance company. Negotiate any discounts and credits if possible. Try to secure premium rates over a couple years with an option to renew or opt-out annually.
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Collaborate with your broker to make a decision for which group insurance plan to offer your employees. Complete a group application listing the benefits you plan to offer and work with your broker and the insurance company to set up the employee enrollment process and announce the decision to employees.
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