There are two different types of Group Medical Insurance in Sacramento CA and they are divided between small and large employers. For the smaller employers, meaning those companies that have between one and 50 employees, they will have a small group plan. Conversely, the companies that employ more than 50 employees will be contracted with large group medical insurance. Depending on the state the company is based in there are subtle differences in what the employer pays for and what the health insurance plan provides.
Often, when you are offered a position with a company a comprehensive benefits package is offered in addition to your salary. Health insurance coverage is a key component of these benefits. A group insurance policy is purchased by the employer to cover all the employees in the business. Buying coverage for a group is less expensive than paying for individual coverage. Many employers pay at least half of the premiums, and the rest is covered by the employee, should they elect to take the benefit.
While individual states do vary in what health insurance companies must provide or offer their customers, federal law requirements are different. For instance, in group coverage, there is a term called a guaranteed issue. This means that no employee can be turned down for a pre-existing condition when brought into the small company’s benefits package. As a whole, the insurance company cannot turn down individuals.
On a yearly basis, the employer can renew the Group Medical Insurance in Sacramento CA at their own discretion. Unless there has been an occurrence of fraud, a premium has not been paid or there was an intentional misrepresentation, policies are renewed on this annual basis.
In some states, before an insurance company chooses to insure a particular group, they do have the right to evaluate the employee’s medical history. This is done to evaluate the premiums for pre-existing conditions. With that, there is a time constraint in how far back the history is checked and that is usually limited to 24 – 36 months.
In the small group medical insurance situations, determining the premiums can be based on one or two criteria. In most states, the underwriting to determine the amount of the policy is based on the health and medical information provided by the employees. The other way that premiums are based in the remaining states is on a median of the community rating. Contact Employers Select Insurance Services for more information on medical insurance.