Group Health Insurance for Churches
Group health insurance plans offer affordable, quality health care coverage. Since insurance companies can spread any risk across a pool of participants, group plan rates typically run considerably lower than individual insurance coverage. When churches carry group coverage, these same benefits can apply for their members.
Other People Are Reading
-
Group Health Insurance
-
Many people obtain health care coverage through employer group plans similar to the group coverage available to churches. In effect, any organization -- such as a fraternity or association -- that exists for a cause can apply for a group health plan, according to the U.S. Department of Labor. Churches fall within the "association" category, making them eligible for group coverage. Group health insurance plans can cover church employees as well as individual members if the plan covers two or more people.
Medical Underwriting
-
The reduced risk associated with group health coverage allows insurance carriers to forego certain medical underwriting procedures. For example, they don't require applicants to take physical exams or provide information on their medical histories, according to USA-Health Insurance, an insurance reference website. Instead, insurance carriers base premiums on general characteristics by looking at common factors within the group, such as age and occupational hazards. Since churches fall within the association category, insurers base their group health plans on the same medical underwriting criteria as other types of groups.
-
Plan Rates
-
Group health insurance covers a group of people, such as all members of a church, under a single plan. As a result, premium rates for individuals run considerably lower than if each member had his own health plan. In effect, the group as a whole carries less potential risk and cost in terms of health problems than each individual member. And while group plans provide low-cost health coverage for churches, the ability to provide customized coverage for members depends on what the church decides to purchase.
Eligibility Periods
-
As with most types of insurance coverage, eligible participants typically must apply within a specified time to get the best rates. For church associations, enrollment periods may fall within the first 30 days of membership in a church, though this can vary depending on the insurance company and the type of coverage. Church members who enroll outside of the enrollment period may face the same procedures required under an individual health plan, such as taking physicals, completing health questionnaires, and providing documentation of past medical conditions.
-
