Different Options For Group Health Insurance

By James Joyce

Group health insurance is a type of insurance policy that is provided for companies. In these policies any eligible employee can join the group policy and in many states this is how people get insurance as health insurance is mandatory. Many times your company's health insurance is a much better choice than having your own individual coverage as you have better coverage and lower premiums.

Group health insurance will differ depending on the size of the company and your state. Each state has its own health insurance requirements and most group health insurance policies will differ depending on the size of the company. The factors that tend to differ are the premiums you are paying and the type of coverage you are able to have.

Small employee group health insurance must provide health insurance to everyone even if they have a pre-existing condition. This type of insurance is also known as guaranteed insurance. Small employer insurance must be renewed each year. While the insurer must accept all employees they can review employee's medical health and change the policy when it is renewed to not provide coverage for certain health issues.

Each company will come up with its own premium rates using medical underwriting. Some companies may use modified community rating or a community rating to create their insurance rates. Medical underwriting uses your medical history and adjusts their rates depending on which types of coverage are needed and what could be used a lot. Basically the insurance company wants you to pay the bill and not them and they will adjust their rates accordingly.

Large company insurance does not have to accept all employees as it cannot insure a specific company. But if your company does have group health insurance then all employees must be covered as you cannot exclude any employee from the policy. This includes employees with pre-existing medical conditions.

The premium rates for large company group health insurance and are calculated based on the companies claim histories and the types of employees that participate in the health insurance. Employees will not need to provide their medical history when joining the insurance plan.

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