How Can a Small Business Join & Get Group Health Insurance?
If you're considering implementing a group health insurance plan to enhance your existing employee benefits package, it's essential that you become familiar with the process and steps necessary to get a policy. By understanding the basic requirements and the procedures you must follow, your acquisition of coverage will be smoother and more efficient.
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Consider the Requirements
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Most states have adopted similar regulations regarding minimum participation requirements and mandatory employer contributions. Health insurance plans must be made available to all eligible employees, typically defined as those working at least 20 to 30 hours per week. It is against the law to exclude specific individuals or deny access to coverage for any worker meeting established state guidelines for the definition of an eligible employee. Additionally, most states require the company to contribute a portion of the monthly premium for each participating worker, typically between 10 and 50 percent.
Qualify Your Group
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In order to successfully implement a group health insurance plan, a large enough percentage of the eligible employees in your company must participate in the program. Most states require that a minimum of 60 to 75 percent of all eligible workers enroll in the plan. However, those employees already covered by another group medical policy, whether through another employer or a spouse's employer, are deemed "eligible waivers" and do not count against the minimum participation requirement.
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Obtain Quotes
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To join and get group health insurance, contact an independent insurance broker or individually contact the health insurance companies offering policies in your state. Provide the basic information about your company, including location, industry, employee demographics and any other details required by the carriers. Quotes can be generated relatively quickly and will include multiple types of policies, each with different options for your consideration. Evaluate the quotes for acceptable benefit levels, prescription coverage, copays, deductibles and monthly premiums.
Complete Application Paperwork
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Once you've chosen the plan most appropriate for the needs of your workforce, contact the insurance carrier or broker to request an application kit. Complete all paperwork and have employees fill out individual enrollment forms. Those workers declining to participate in the plan must submit a waiver form indicating the reasons they chose not to enroll. Return the forms, along with necessary supporting documentation like articles of incorporation, payroll reports and business licenses, to the broker or insurance company.
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