All About A Small Business Group Medical Insurance

By Jeannie Monette


Employees form the biggest asset for any business. To recruit and retain workers an attractive pay and medical cover is considered vital. Hence, offering such a cover is actually an investment. It is difficult to understand the complex small business group medical insurance.

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 insurance company works out the premium after receiving, reviewing and approving the application. The set is assessed by the size and health in order to determine the premium rate. This rate is however same whether applying from an agent or a company.

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.

The steps for selecting a plan that works for you and applying for it is simple. You begin by talking to insurance companies about the group that is to be covered. Review quotes from different companies offering the medical cover. Once you select a plan you may begin the application process.

If a business has less than fifty employees it is not mandatory to provide medical cover to them. There is a tax credit from the government however if you do. Beginning 2015, organizations with full time employees who are more than 50 will have to pay for them medical insurance otherwise have tax penalties imposed.

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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