Small-Sized and Medium-Sized
Understanding the Basics About
Employer-Sponsored Health Insurance
Health insurance plans
vary greatly in terms of employer and employee costs, limitations and
exclusions, choices of health care providers, types of medical services
provided (such as preventative care and health screenings), hospital and mental
health coverage, prenatal, and maternity care and prescription drug costs. This
can make finding the right
insurance plan for your business confusing, complex, and intimidating.
As you begin to exploring affordable
insurance plan options for you and your employees, keep in mind the
- Most insurance companies have "Small Employer Group
Plans" for employers with less than 50 employees. They may offer plans for a
varying range of small employers such as those with 2 to 15 employees or with
16 to 50 employees. Ask for information on these "Small Employer Group Plans".
- An insurance company cannot refuse to sell coverage
to a small business on the basis of employees' or dependents' health status.
(This is called guaranteed issue.)
- Once the health plan is sold to a small group, it
must renew the plan regardless of the health or experience of the group.
Renewal premium rates could rise, but
many states limit the amount a health insurance carrier can increase premiums
based on health status.
insurance costs can be based on several factors, including age and gender
of employees, number of dependents, and type of occupation.
- Employers may be required by the health plan to pay
a minimum share of their employees'
- Some states may set certain criteria for providing
coverage, so contact the Alabama
Department of Insurance about health coverage requirements for Alabama