When to Consider Buying Small Business Group Health Insurance

A general rule to getting a small group health insurance policy is that you need to have been in business for at least a year. This is only a general rule and there are exceptions. Corporations or LLCs (limited liability companies), which are formally created businesses can often obtain a small business insurance policy immediately.

The number of employees that you need to get a small business health insurance policy depends on what state the business is located in. You will only need one person in North Carolina but in many states you need two employees. You can count yourself and a spouse as two employees as long as you list both as covered employees on the application.

Applications for small business medical insurance will require more information than an individual policy. You will need to list your employees and also provide some medical information regarding the employees. Group policies are considered guaranteed issue so that your business and employees cannot be turned down due to medical conditions. Each state has different laws regarding the rates that can be charged and may vary greatly between states. After signing up for a policy you will still be required to provide annual company information such as a profit & loss statement and you may also be required to re-apply for coverage every year.

Rates for your policy will go up every year. The amount of increase will depend on your insurer, the state your business is in and how much of the health insurance was used by your employees. If one employee uses a lot of health insurance that can drive the rate up for the entire group in order for the insurance company to cover any possible losses. If that employee leaves the company you can always shop around for a better rate from another insurer.

The second reason is to protect you or a key employee or dependent if they have a medical condition. Individual health insurance is underwritten so coverage can be denied because of a medical condition. A small group health insurance policy would provide guaranteed coverage at a lower cost than an individual policy.

Finding a good small business group insurance policy will require a lot more work than for an individual policy. As a small business you will have a lot more companies and options to choose from. It's best to find a licensed health insurance agent who also has good standing in your state.

When you have decided to purchase a small business medical insurance policy remember that it will take a lot of research to find the best policy. The shopping around for a policy and annual renewal requirements will require a lot of work but being able to provide health insurance to your employees will be worth it. An alternative to you doing the work is hiring an employee leasing company who will take care of all issues involved. This is a good option for the best financed and busiest businesses.

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