Group health insurance is when an employer is able to offer health insurance to eligible employees as a benefit for working with that company. Most employees in the US get their health insurance in this way.

What most employees don’t realize is that health insurance will differ depending on your employer as well as the state you are in. There are different group health insurance policies depending on if you are a small employer or large employer. This affects the premium rates and what is covered in the insurance.

Small company group health has something called guaranteed insurance as small employee insurance cannot exclude anyone from having insurance even if they have a pre-existing medical condition. However the group insurance will need to be renewed each year and depending on the employee’s medical history the insurance company can alter the insurance coverage.

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 group insurance works in slightly different ways as they can refuse to provide insurance to the company depending on the employees. They cannot single out a specific employee, usually with a pre-existing condition, as once the company has the insurance it must allow any employee to join.

Large company group insurance policies will set rates and premiums based on the companies prior claims and which employees tend to participate in the health insurance program. Large companies do not require medical history or health questionnaire.

Learn more about Health Insurance. Stop by James Joyce’s site where you can find out all about your premium health insurance and what it can do for you.

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