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    Group Health Insurance Policies

    Details of Group Health Insurance Policies

    Posted on 10/15/2009 3:06:43 PM

    Group health insurance is a policy that is often given to employees by the company he or she is working for. This is considered to be benefit that extends to employees’ family. Majority of the population has this coverage.

    It is important to take note that health insurance varies differently depending on the employer. Since it regulated by the government, your location pretty much has an effect over the insurance. Depending on the size of the company, premium rates are also different. Requirements of business owners may also vary on the coverage.

    According to the law, employees with pre existing health condition must not turn down by insurance company if applied for group coverage. It is mandatory that health insurance plans should be renewed every year. Non payment of premium is against the law. You may wonder how premiums are determined. For small insurance companies, they are allowed to determine a premium rate which is called medical underwriting. There are some rates that abide with community rating for initial rates.

    If you belong to a large company, a health insurance company can reject the whole group based on claims history. An employee should not be excluded based on medical history alone. For larger employee groups, premium rates are determined based on claims history. It also includes increase in the cost of providing health insurance coverage. Normally an employer contracts with a health insurance company in order to provide employee benefits. The company also pays for premiums. The government is the one that regulates group insurance plans.

    If you belong to a large company meaning having seven hundred employees, you may choose to self insure the group benefit plan. Meaning that employer sets a pool of fund and assumes risk of benefit claims. Companies that self insure protect themselves by contracting third party company to handle claims. If employees are not sure if they fully insured or self funded, they should ask their employer. For sole proprietor, they can avail of group insurance provided that they have at least two people. Insurance companies are strict with small businesses and would require them to present documents that they are legitimate. Thus could be done to prevent fraud.

    There are people who lose their health insurance coverage because of job change, divorce and other reasons. Sometimes it is temporary. People who choose to continue their benefits are protected by law. There are many states that mandate continuation of coverage option.

    If you want to know more information about group insurance policy, it is best to browse the internet. Read about different policies that are applicable for group. Contact also your local government for their rules regarding group insurance. It is also best to know the rates so you can do comparison of different insurance policy.
     

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