Common Group Health Plan Issues For Employers:

Small business owners face a variety of issues when they are dealing with group health insurance. We will provide a sampling of possible issues and solutions that may assist you in resolving this issues quickly and easily.

Issue #1 - Getting your employees to agree. Trying to get a group of people with different health insurance needs to agree on the same level of coverage is nearly impossible. If your group health insurance policy offers a one-size-fits-all approach, this can be even more difficult. Try to meet with your employees to determine their needs ahead of time and do your best to get a majority vote. If all else fails, you may be able to use benefit riders to increase employee satisfaction with your group health plan.

Issue #2 - Finding a group health plan. In California, it has become easier for small business owners to get a group health insurance policy. Under California law AB 1672, insurance companies cannot refuse coverage to a small business, nor can they hide certain plans from business owners. Other states have not caught up yet, but with careful selection, you should be able to find a group health plan that fits your needs and the needs of your employees.

Issue #3 - Health savings accounts. Health Savings Accounts or HSA's first came into existence in 2004. They are a tax-free way to pay for health care premiums and health care costs and many employees are becoming interested in using them. However, there are eligibility requirements for insurance plans. In order for an insurance plan to be HSA eligible, it must have a deductible that is greater than $1000 and it cannot offer a co-pay for health care services. If your existing group health plan is not eligible, you may need to switch if the majority of your employees would like to use their HSA.

Issue #4 - Renewing an insurance policy. Group health plans are notorious for their poor renewal offers from insurance companies. California law AB 1672 has required that insurance companies offer small businesses guaranteed renewals. If your business is not located in California, read your group health plan policy carefully before purchasing it. If there is not a guaranteed renewal clause, you will need to find another policy. This is important because many insurance companies have used this loophole as a way to dump small business' that may have sick employees.

Issue #5 - Group health insurance is too expensive. Trying to find a group health insurance plan that your business can afford is difficult. If you cannot find a traditional health plan that you can afford, you may need to look into state high risk pool insurance, or an association health plan. These insurance plans are similar to group health insurance for groups and give small business owners more purchasing power.

Issue #6 - The insurance plan doesn't offer enough options. If you cannot get your employees to agree on the type of insurance they need, you may need to select a flexible group health policy. This type of group health insurance allows employees to select the amount of coverage that they need and personalize their own policy. This is a great way for your employees to get the kind of coverage they need and can assist you in finding the best health plan for everyone.

<< Back