Group Health Insurance
Generally the most significant benefit policy that a company secures to benefit its employees is its Group Health Insurance. This is designed to cover a group of two or more employees who meet the definition of full time employees. Coverage can range from a high deductible, partially self-funded plan to a very rich plan with minimal co-pays and a full range of in and out of network options to a plan that allows only in-network providers with high co-pays and co-insurance.
Next year, 2014, will bring many changes to Group Health Insurance. This is the time to get educated on the new requirements under the Affordable Care Act and begin to plan for your Group Health plan design under the AFA.
Group insurance programs designed to offer affordable accident and/or health coverage to a natural group, such as employees of an employer or members of an association and their families. A single contract is provided for the entire group which outlines the standard benefits, terms and provisions that apply to all members of the group. Individual certificates are usually issued to the members to verify that they are covered.
1) Insuring a number of persons under a single master contract. The persons have a common sponsor, such as an employer, a union or an association.
2) "True" group insurance precludes individual underwriting by the insurer, requires the employer to insure all employees if the employer pays any portion of the premium, and allows employees the option of participating in any coverage for which the employees must pay.