4 Key Benefits of Small Group Health Insurance

Small group health insurance is available for companies employing a certain maximum number of employees, which varies by state. There are several benefits of this type of insurance for employees of small companies.

Key Benefits

Among the key benefits of small group health insurance are these four:

  1. By federal law, a company meeting the requirements of a small business in their state cannot be denied acceptance by an insurer because of the medical status of its employees;
  2. Employees can afford the insurance because most of the cost is absorbed by the employer;
  3. Employees’ families are usually covered;
  4. An employee whose job status changes, for example because of being laid off, is eligible for continued coverage, at least temporarily, through COBRA, the Consolidated Omnibus Budget Reconciliation Act.
State Requirements

The most common definition for a small group is 2 to 50 employees. However, this varies by state. To find out the requirements in your state, visit the National Association of Health Underwriters database.

 

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