Sunday, December 14, 2008

Group Health Insurance

It is estimated that more than 60% of the U.S. population that has health insurance receives their coverage through an employer that offers a group health insurance plan. It's no secret that employees value health insurance benefits, perhaps above all other benefits. Employers, on the other hand, like to offer comprehensive group health insurance as it tends to attract and retain qualified employees as well as reduces the company's turnover rates.

In most states, group health insurance is available to companies with 2 or more employees. Often the number of employees covered under the group health insurance plan determines the types of coverage available as well as the premium costs.

For example, companies with between 2 and 50 employees are typically classified as a small business. Such businesses are eligible for small business health insurance; however, each state has its own set of regulations that determines what business can be classified as a "small business". It’s interesting to note that some insurance companies will market a “group” health plan to a single individual that is self-employed. In such cases, it's important to realize that these "one-man" groups may not qualify for the same regulations that apply to larger groups.

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