Group health insurance is exactly what it sounds like: a
health insurance plan or plans offered to groups of people by means of their
employers.
Individual and family health insurance, conversely, is offered to
individuals and families rather than employer groups, and it can be a much more
attractive and reasonable option than many people believe.
In most states, group health insurance is available to any
company that has two or more employees. The requirements for eligibility may
vary geographically, and most companies that are opting for group health
insurance will have to verify the authenticity of their business operations.
Many benefits are there for the employee, being a member of
a Group Health Insurance plan, which a monetary value cannot be put on.
In the
first case, they don't have to pay out massive premiums for a private medical
insurance plan - which can literally bump into three figures every month. And
they have the calmness that should they need it, expert medical help is
available instantly.
Many companies who do offer this benefit to staff will also
pay their employees to have a once a year health check at a private hospital as
part of the Group Health Insurance Plan.
These health checks cover weight,
height, levels of fitness, blood pressure, blood tests etc and are carried out
to ensure that the staff member is in optimum health or to spot a so far
undiagnosed condition. Whichever way, the screening is helpful to staff and
their employers.
The number of employees insured under the group health plan
also determines the types of coverage available to the employer as well as the
per-employee premium.
Generally, a company with between 2 to 50 employees is
classified as a small business. Many companies have 1,000's of employees and
will have health plans customized for them by the health insurance carrier.
Many of these customized plans may include additional
benefits that would be excluded from their standard issue policies. Some large
corporations may opt to self-insure and only use the insurance carrier to manage
the health plans and benefits.
This is done by placing a sizeable bond with their State and
pulling from this account to pay medical claims by means of the administrating
health insurance carrier. In doing so, the company is assuming the risk of
major medical claims and acting as the insurer.
Although health plans will vary from provider to provider
and employer to employer, a typical Group Health Insurance package will offer
cover for:
- Specialist
consultations following a referral from the employee's GP
- In-patient
and day-patient treatment once the employee has received a diagnosis
- Out-patient
treatments (for example, physiotherapy)
- Free Help
lines - for example, a GP Helpline and Stress Counseling Helpline.
Most health insurance companies in the U.S.
will have three classification levels based on the number of enrolled employees
on the health plan:
- Small
group
- Mid-size
group
- Large
group
Even though the number of employees that are required to
fall into a specific category may be determined by the insurance company or by
state legislation, there are common standards for these classifications. Small
group health insurance coverage is available to companies with not more than 50
employees.
Mid-Size group health plans are available to companies with
between 50 and 300 insured employees. A company is classified as a large group
if they provide over 300 employees to be insured under the health insurance
policy.
Small Group Health Insurance
Any insurance company that offers small group health
insurance must follow the regulations that are administered by the state in
which the business maintains a physical address.
If a business has employees or
offices in several states, the regulations may be determined by the address of
headquarters.
Mid-Size Group Health Insurance
Also referred to as "mid-market group health insurance" by
some insurance companies, this category may offer more plan choices that those
offered to small groups. Each health insurance company may have their own
requirements on the number of employees required to come under this category.
A larger portfolio of plans is available under this
classification, and some of the plans may have richer benefits than those
offered to smaller groups.
Large Group Health Insurance
If a company grows in employees and exceeds the limit of a
mid-size company, they will be regarded as a large group health insurance
policy. There are many similarities to mid-market health insurance policies,
but there may also be increased flexibility.
Most health insurance companies that offer products in all
group size classifications will have the greatest number of plan options
available to the large group qualifiers.
Each insurance company may have their
own specifications as to how many eligible employees are required to qualify as
a large group. Since this is the highest classification of group health
insurance, there are usually not maximums
If you require any additional information regarding group
health insurance, you can visit the website at the URL http://www.healthinsurancefinders.com/
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