Perhaps many of you are wondering what a group health insurance policy really means. Well, the answer is not complicated at all! It is just an insurance coverage made by an employer or other authority that is meant to cover all individuals in a particular group!
A group health insurance gives an employer the advantage of not paying the whole premium for the insurance policy in order to cover his employees. In the past, an employer was expected to pay for all the benefits of the employees, but fortunately, now the times have changed and an employer only has to contribute just a part of the health insurance premium of the employees.
The general attitude of the insurance companies is to offer lower rates for a group health insurance than on an individual one. This is the main reason why people who are self employed to be aiming for a small business health insurance too. These persons cannot be blamed, even if they incorporate to give the insurance company the impression of a larger corporation, as they are only trying to get a good deal on their small business health insurance rates. The result is that each and every person struggles to get on an insurance plan, as a small business health insurance is very cheap when compared to individual health insurance.
It is a commonly known fact that group health insurance plans are very much appreciated by all the employees. This is the main reason why most employees value it very much too. A group health insurance policy or a small business health insurance has contributed to the success of many organizations. They have thus enabled them to continuously employ new people and, at the same time, keep the best people in their business!
No matter what group health insurance plans, service suppliers or a health maintenance plans that a company may offer, there are so many places where you can get informed about these things. You must carefully analyze the group health insurance quotes that a number of insurance companies offer, before deciding if there is something to suit your expectations.
In order to make the best decision regarding a group health insurance, a employer must study all the websites and brochures of the health insurance companies that the employer has selected and intends to engage. After comparing their service plans, costs and methods of payment, you must also keep an eye on the starting and ending dates of the insurance policies. The interesting, but disturbing thing is that some health insurance companies only cover you from your third payment, therefore you must be very well informed before making such an important decision.
Last, but not least, there is one more thing you’ll have to consider before choosing a group health insurance plan or a small business health insurance: should there be any services or illnesses that are excluded from the policy, it is best to know it from the start. This is the main reason why it is for the best interest of any employee to keep away from any group health insurance policy that only covers a small number of diseases.
By: David Rumsey
Posts Tagged ‘Group Health Insurance’
Best Tips on Group Health Insurance
January 28th, 2010Health Insurance For Diabetics
January 25th, 2010
While health insurance is important to everyone, it is especially important to someone with diabetes. Diabetes is a disease that must be carefully controlled. Plus, even with tight controls, there may be complications as time goes on.
Unfortunately, with the exception of only 5 states, health insurance is medically underwritten. This means that you must answer certain medical history questions and qualify for the health insurance plan. Diabetes, in most instances, will make you ineligible for a private health insurance plan.
There are still alternative plans and methods for a diabetic to secure health insurance. This article will give you an overview of how to obtain a health insurance plan with diabetes.
Group Health Insurance
If you work for an employer who offers group health insurance your problem is over. Group health insurance is guaranteed issue and you cannot be declined for any pre-existing condition. Furthermore, even if you never had health insurance before or let it lapse, pre-existing conditions will be covered in full after 12 months. If you have had continuous coverage, there is no waiting period.
But, what if you want a full major medical plan and do not have group health insurance available to you?
If you work in certain industries, you can purchase a guaranteed issue major medical plan with no medical questions.
Major Medical
Currently, those industries eligible for major medical include:
- Real Estate – agents, brokers, mortgage brokers, appraisers, clerical and administrative staff. Anyone in the real estate or mortgage industry can qualify.
- Construction – This is a fairly broad category. It encompasses anyone in any aspect of the construction industry.
- Information Technology (05/08) – another broad category that includes programmers, network engineers and technicians, web developers and designers, repair technicians. Again, anyone in the information technology industry or administrative personnel working for an information technology company.
Limited Benefit Health Insurance
A limited benefit plan is also guaranteed issue and available to any diabetic under the age of 65.
Limited benefit plans, sometimes referred to as “mini medical”, vary widely in terms of the benefits they offer.
We suggest that whenever possible the plan include the following:
Pay at least $1,000 a day for hospitalization (more would be better).
Have a surgical schedule that is not limited by any caps.
Pay for a limited number of office visits and diagnostic tests.
Be HIPAA-qualified (this means that it is credible coverage or real health insurance and not a discount plan with some extra benefits thrown on top). Use a national PPO network.
Critical Illness Coverage
Anyone between the ages of 18 and 64 can obtain a guaranteed issue critical illness plan.
This plan will pay you a lump sum of $25,000 upon diagnosis of certain life threatening illness. They include cancer, heart attack, stroke, kidney failure, etc.
In addition, this plan will pay $500 for each 24 hour stay in a hospital. It is an ideal plan to add to a limited benefit plan to increase the coverage or just use as a standalone plan. For an individual, the cost is $88 a month.
Where Can I Get More Information?
We recommend that you talk with an insurance agent who specializes in guaranteed issue plans. The best site we know of is www.guaranteed-health-insurance.com. You can reach them at 800-986-4786 9 AM to 9 PM EST.
A Word of Caution
Quite often, individuals who are having difficulty obtaining health insurance are taken advantage of. They are sold worthless discount plans or overpriced coverage that offers very little protection. Please use common sense when shopping for a plan and read everything carefully.
By: Martin Unger
Health Insurance – Understanding The Benefits Of COBRA
January 19th, 2010
The Consolidated Omnibus Budget Reconciliation Act of 1985, more commonly referred to as COBRA, is a federal law which is designed to ensure that an individual can continue to receive health insurance coverage for a period of up to 18 months following the termination of his employment. Most, but not all, companies that offer group health insurance schemes to their employees are subject to COBRA. In some circumstances coverage under COBRA can be extended from 18 months up to a maximum of 36 months.
COBRA protects individuals from losing their health insurance benefits when they lose their employment and is a temporary measure that is designed to help people through this potentially difficult time This said, not every employee who loses his employment will qualify for COBRA but employers should be conversant with the law and be able to advise their employees accordingly.
The law permits a terminated employee to purchase health insurance for himself and his family (provided the family were covered during employment) at the group coverage rate even though the employee is technically no longer a part of the group. The cost however can be high as the employee will now need to pay 100% of the cost each month, together with a surcharge of 2%.
Although most often thought of in terms of termination, COBRA can also come into effect in the event of a change of employment status such as reduced hours, or divorce from an employee of eligible status. Cover will normally continue for the time specified in the act or a shorter period if the employee takes out individual health insurance or is covered by another group health insurance plan.
Because COBRA extends a terminated employees health insurance for a period of 18 months, terminated employees do not need to worry about a change in their health insurance benefits. Coverage under COBRA insurance remains exactly the same as that provided during employment and the only change is in the responsibility for the payment of monthly premiums. It should be noted however that it is possible for the benefits under COBRA to change if an employer changes the health insurance plan being offered to current employees during the period of cover.
The important thing to remember about COBRA is that it is designed to be a temporary measure and, while that guarantees health insurance coverage for a period of up to 18 months, once this period expires you will find yourself without health insurance unless you make alternative arrangements or are covered by a group scheme from a new employer.
One of the dangers of COBRA insurance lies in the very fact that it is temporary. If, for example, you should fall ill while covered by COBRA you may find it difficult, or indeed impossible, to get future health insurance if this illness is subsequently classed as pre-existing and is ‘uninsurable’, as might be the case if you were to develop cancer.
By: Donald Saunders