Getting insurance for a group is very different from buying health insurance for yourself as an individual or for your family. In fact it is a lot cheaper to get a group coverage compared to personal coverage. And there are a number of benefits from getting group coverage.
Group coverage is a single coverage which is issued to a group. It is usually a business which has employees on payroll, but other groups can also qualify if they reach the right insurance company. And this sort of insurance is not just for the employees, but will also cover their dependents in certain cases.
The rules are pretty different compared to individual insurance. The risk calculation is totally different in a group policy. Factors such as the group characteristics are taken into account. It’s not just about how healthy each person is, but it’s more about the risk associated with the entire group as a whole. The average age, the working conditions and other factors will be taken into account along with medical checkups for each individual. If the employer is sharing the cost with the employee, the charge for every employee is going to be the same save for a serious chronic health condition.
Actually there is no particular law that requires all employers to provide health care for their employees. It is just an added perk that most companies offer.
California state law AB1672 states that small employers are guaranteed insurance coverage if they choose to get it, but only if they
- Offer the coverage to all employees irrespective of age or gender.
- Comply with all the requirements of the insurer with regard to employee contributions.
- Have not committed any insurance fraud.
- Pay their insurance premiums on time.
- Have been in the business for more than two months.
Now the question is who is eligible for this coverage?
The rule is that if the employer offers coverage to even one employee, they must offer it to all. A full time employee is one who works for more than 30 hours a week. And a part time employee is one who does 20 to 29 hours a week. It is left to the employer’s discretion as to whether they want to provide insurance for both classes of workers. But the rule is that if it is offered to one member of one class, it should be offered to all the members.
It all boils down to employee satisfaction which will result in better employee retention capabilities. The human resources wings of all companies make sure that such coverage is offered with a view to retain their talent. It’s a win-win situation for both parties. The employers get to retain their skilled and highly trained workforce, while the employees get to enjoy the perks and benefits of a group scheme.
Of course, the most important thing is to compare quotes on Group Health Insurance in California or any other state before purchasing.