Fully Insured Group - The ins and outs
Over the last two weeks we have been going through a group insurance series on our Two-Minute Tuesday videos. To see our Two-Minute Tuesday covering "At What Point Do I Get A Group Plan", click the link. Two-minute Tuesdays are designed to help bring clarity to the market of health insurance by answering some of the most common questions we get in a two-minute video clip that is released weekly. This week we covered the topic of fully insured group plans.
Last week we answered the question: At what point does it make sense to get a group plan? Now that we have this understanding the next step is to understand that not all group plans function the same. There are different ways that a group health insurance plan can function. One of the most common ways for a group policy to function is as a fully insured plan.
The major difference in fully insured versus other group plans is how the underwriting is handled. In the past, group plans required a massive amount of underwriting to take place for the group to get insured. This underwriting would take months to complete and could cause a hiccup in the installment of the policy if anything occurred during the underwriting.
Today, underwriting on a fully insured group plan is expedited exponentially. The process is sped up mostly due to the fact that no one can be denied coverage on fully insured plans. For businesses that have a portion of employees with cancer, the group cannot be denied due to this. Not only can the group not be denied for their medical history, but the group cannot have a rate increase due to anything in their health history.
There are two things that determine the premium for a group: the age of the group and the number of employees or members that are accepting the group coverage.
When do I go Fully Insured?
Often times, fully insured group plans are the more expensive approach to group health insurance. Also, fully insured group plans are typically for groups that are under 100 employees. This doesn’t mean that if you have under 100 employees you should go on a fully insured plan. Rather, there are several other factors to weigh in deciding what is best for your company.
This is why having a broker is so important. At Apollo we understand business and health insurance which makes us an expert in the industry. Therefore we will examine which type of group plan best fits you and your company so that we save you money and give your employees equal or better benefits. Apollo advisors are educated to not only understand what which type of group plan to go on, but our advisors are contracted with every group insurance carrier on the market which gives us the power to compare carrier to carrier what works best for your situation. Apollo can offer fully insured plans, as well as self-funded and partially self-funded group plans. Next week will will be diving into the nuances to self-funded and partially funded group plans, be sure to tune in to that Two Minute Tuesday!
Contact us to receive a free health insurance quote on your group to see what is best for your business!
To check out some of our other blogs about group plans click one of the links below!