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All About A Small Business Group Medical Insurance

By Jeannie Monette


The greatest asset for any business is its workforce. A medical cover is one of the factors to recruit and also retain employees. This makes it some sort of an investment to the organization. Understanding the often complex small business group medical insurance plans is difficult for most employers.

To be eligible for a group medical cover a company is supposed to meet a certain criteria. The organization should have at least two owners and/or employees who are all full time. The business should be legitimate with the ability to raise the lowest employer contribution usually half the premium.

There are two types of group health cover-fee for service and managed care plans. Fee for service plan provides a broader choice of doctors including specialists and also hospitals. These plans are however no longer as popular in the market. Managed care plans have less costs and probably less paperwork.

The monthly cost is determined by the insurance company once the application has been reviewed and approved. There is a list of factors considered to assess the group. They include the size, health of the employees so as to get the premium rate. The monthly rate is always the same whichever way you apply.

The employee should pay a minimum of 50% of the premium paid by an employee. The employee is then supposed to pay the other half and also the value for the dependants. This value may vary from state to state and also with insurers. In a few cases the employer may pay more than the 50% or some of the costs of dependants.

It is not difficult applying for a group cover. Take some time to contact the insurers and inform them of the desire to seek a group cover. They will provide the costs in quotes which you review as well as any additional benefits. After this you can fill out the necessary forms and send them to begin your application process.

Businesses with less than 50 employees are not required to provide health cover. However there is tax credits provided if the company does. Starting 2015, businesses with more than 50 full time employees will be required to provide a medical insurance otherwise face a tax penalty.

Remember dental and vision covers are not included in the set medical cover. However, they can be added under an arrangement with the insurer and extra payments. It is the obligation of every business to encourage its employees to seek a medical indemnity whether providing it or not. Employees who are motivated and healthy are a sure way to grow the business.




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