Coverage That's Healthy for Your Business
Making the best choices. . .
Playing the numbers game
When it comes to buying group health insurance, there is strength in numbers.
And, big numbers have traditionally gotten the best deals. According to The
Wall Street Journal, in 1999, 70% of Americans obtained coverage through their
employers. Many of those employers are large companies with strong-arm power
at the insurance bargaining table. As a small-business owner, however, there
is no reason to feel leftout. HealthInsurance.com has all the tools you need
to find the highest quality coverage at the best possible price.
Cornering the small-group market
Small-group refers to the number of employees in a given company. It can be
as many as 100, but is most often two to 50. In this market, health insurance
prices have traditionally been based on two factors:
- Projected cost of medical services in a given geographic area
- Projected utilization of services
Cost projections are fairly stable across the country. But insurance companies
estimate utilization of services probability on factors ranging from the medical
history of your employees and their dependents to age and gender. These details
affect plan premiums to you and your employees. If a member of your staff is
considered a greater risk the group will usually pay a higher premium for insurance
The importance of underwriting
The majority of small-group health insurance companies use a process called
underwriting. An underwriter analyzes risk factors (including the medical history
of each individual) to estimate potential claims and determine a group's insurability.
The insurer's goal? To offer coverage at a fair price and to ensure adequate
income to pay future claims and expenses.
Small-business coverage options:
Regardless of whether you are a small company or a Fortune 500 giant, you
want to make sure you are getting your money's worth out of a health plan. It's
important to weigh the pros and cons of each choice when selecting a plan. While
premiums vary among different carriers, recognize that there can be substantial
differences in the benefits provided and in the amount your employees must pay
out-of-pocket for services.