Key Benefits of California Group Health Insurance
Although government trend data suggests that fewer people are getting their health coverage through their place of business, it is still the case that the workplace provides health care insurance for most people, and most companies consider it part of the cost of attracting and retaining the best employees.
In a nutshell, most people obtain coverage from their employers because it is guarantee issue insurance, and the coverage options are broader. You can’t be turned down for California group health insurance due to pre-existing health conditions. By law, employers must subsidize at least 50% of the premium for their employees.
Group health insurance plans in California can be set up by companies that are classified as LLCs, Sole Proprietors, Partnerships or Corporations. To be eligible for Group coverage in CA you must be a group of 2 or more. Different levels of coverage and price structures are offered, depending on the size of the company.
Key Benefits
The key benefits of group insurance are its guaranteed issue availability and broader coverage options. In most every case, group medical insurance in California will be more expensive than individual coverage. This is due to the companies accepting clients regardless of health history. Individual health insurance can be quite – even prohibitively – expensive if you have health conditions. If you have a group option it makes sense to pay a little more in premium and receive coverage in which you will not be rated up in your monthly premium. From an employer perspective, the broader coverage of group plans are attractive for a number of reasons: employees will have better access to affordable health care and thus experience less unproductive sick time, and group coverage helps companies retain their critical human capital. Many employees report that group health benefits play a significant role in their decisions to stay with a company, and can even offset the offer for an increase in salary elsewhere.
One of the most important sets of considerations is those that have to do with pre-existing conditions. Having pre-existing condition can be enough to cause a carrier to deny coverage for someone applying for an individual policy. In contrast, these distinctions are not made with group policies; insurance companies are precluded from denying coverage to people who have had medical issues prior to their joining the group policy. This means that employees who start with a company will automatically have coverage, despite previous medical history, and will not have to personally bear all of the cost for any medication they are taking at the time, or ongoing medical care they might need.
This distinction of group health plans is another reason employees will opt to stay with a company that offers group health insurance. Many with pre-existing conditions are not willing to take the risk of leaving an employer if they know they will have to apply for an individual policy.
Group health coverage a win-win
California group health insurance offers clear advantages to employers and employees alike. Employers are able to provide employees with lower cost insurance options than they would otherwise be able to get, and in some cases, they are able to provide coverage that employees otherwise might not qualify for. In return, employers receive substantial return on their investment in the form of a healthier and more productive workforce, and one that is more committed to remaining with the company. And, for employees, they have greater peace of mind knowing that their coverage cannot be denied.
