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Looking
for group health insurance?
Shopping
for group health insurance is more than just making a phone
call.
If yours is a
small business, you can call your state department of
insurance to find small business group health providers in
your area, or else look into a health purchasing alliance or
association plan. These plans allow small businesses to
purchase insurance as part of a larger group. Health
insurance plans can be tailored to fit the size of your
business (benefit: this coverage helps give you an edge when
recruiting good employees).
Health
purchasing alliances provide a needed service for small
businesses by providing a way for them to purchase group
insurance at lower fees than they normally could. The
alliance purchases the health plan for its members (small
businesses) and has a third-party administrator manage the
plan. Be prepared for the underwriting process with this
type of group coverage. It will often involve all employees
filling out a questionnaire regarding their health as well
as their family's health. Also, check into the operations of
the alliance to ensure that all of the funds are managed
correctly.
You can also
check with trade, professional and other associations to see
if they offer group health coverage.
Health
Insurance Factors
A
surprising number of small business people don't have health
insurance, either because they don't know where to look for
coverage, or can't afford it once they find it. This is a
mistake, since an illness or accident can devastate your
business if you don't have proper coverage.
When you're
looking for health insurance, either an individual or a
group plan, keep the following in mind:
- Look for
guaranteed renewal. Make sure your contract has the
words "not cancelable by company" or
"guaranteed renewable" in it.
- You want a
company that pays benefits based on customary costs, not
by a fixed schedule. Strict limits on what an insurer
will pay may result in medical bills beyond your
deductible. Also, look out for coverage that only pays
for in-hospital care, or leaves out a long list of
medical treatments.
- Many
business or industry associations offer members the
option of being part of a group insurance plan. This can
be a good way to go, but these policies are also often
overpriced, so don't automatically assume that your
professional association is giving you the best deal.
- HMOs and
other managed care companies aren't always the least
expensive option either, because they historically have
been more liberal about who they insure; the cost of
covering these people may be passed on to you.
- You may
choose to buy insurance through a PPO, an organization
which allows you to choose a doctor from a list of
providers or go outside of its network if you pay a
deductible. If you buy coverage through a PPO, be sure
to check for hidden expenses such as "hospital
admission expense."
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