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Group Health Insurance Advertisers

These pages act as a hub for easily finding a variety of active producers specializing in health insurance. We do not suggest that you employ any particular producer advertised.

Websites that will refer your contact information to insurance producers, and producers who can provide information on group health insurance, appear on a state by state basis.

Bear in mind that it is the group health insurance company that offers the insurance, and the producer (a.k.a. agent or broker) is contracted to disseminate plan information and to aid in making the application to the insurer.

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Consequently, producers do not compete on price, they compete on service only. For premium and plan information you can go to any of these producer sites, but bear in mind that none of them has a "better deal" for group health insurance than another. They can provide information and explanation and help you apply to an insurer, but they have no power to change an insurer's income by setting premiums. There is no reason for an insurer to give control of product or premiums to producers.

The group health insurance company alone sets the charges and extent of coverage. So no matter who helps you apply, the actual monthly charge for group health insurance is the insurer's decision and is not dependent on who provides the initial quotes or application forms.

Group health insurance companies do not negotiate their rates. They set them based on risk factors which may be on an individual applicant basis or on a community basis. They charge what it takes to stay in business. The producer who quotes rates and supplies the application for group health insurance can not change that or adjust any premiums.

The producer's remuneration is based on each produced application assuming coverage is issued. Additional remuneration may be paid as an encouragement to produce more. That extra commission or gifts may, or may not, sway the producer in what is presented.

Some Group Health Insurance Facts

All employers with from two to fifty employees are in the small group category and are guaranteed to be able to buy group health insurance if it is sold in the state. All insurers in the small group market must issue coverage. This is mandated by Federal law and individual states have added their own mandates.

Employees are entitled to also enroll dependents in the employee's family, i.e., spouse and minor children. The age of children allowed as dependents may be extended by state law.

Within the limits of state and federal law, the employer decides a few of the conditions of the plan, e.g., the waiting period for employees to enroll in the plan and the minimum number of hours worked per week to be eligible.

Group coverage does always result in costing less than individual coverage. Buying a commodity in bulk is different from buying group insurance. Premiums for insurance are driven by claims costs. Reducing other contributing factors like marketing expenses are not always enough to bring group premiums below individual policies.

In most states, it is not mandatory that individual coverage be issued to any applicant. Specific conditions may also not be covered if they are identified by exclusion riders. This helps reduce claims costs and therefore helps to reduce premiums for individual coverage. This cost reduction is not available for small group insurance because its issue is mandatory to all bona-fide small group employers and exclusion riders are not permitted in small group insurance.

When the cost of small group coverage is greater than individual coverage, some small groups with no pre-existing conditions decline to buy small group coverage in favor of each employee buying individual coverage. The tax deduction available to the employer who purchases group coverage is lost, but the net cost may still be less. This tendency puts even more more price pressure on small group coverage.

For groups above 50 employees, the group generally is on its own to a large degree. There is much less regulation of the large group market when it comes to issue and pricing of plans. Individual mandates protecting employees under federal HIPAA and COBRA laws still apply, but mandatory issue of policies to large employers does not apply, unless a state enacts such a law.

Some employers in the large group market have had to abandon their group plan because a few employees had such expensive medical conditions that without community rating, the premiums became so high it could not be continued.

Group health insurance generally means purchase by an employer.

A group cannot be formed just for the purpose of buying insurance. Such a group would have adverse selection.

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