Guide to Large Group Health Insurance Underwriting

What many business owners and associates don’t find easy is the search for the right group health plan. There are many stipulations and laws that a business of large group size must abide by if they wish to avoid penalties from local, state and federal agencies governing the insurance standards. Knowing the standards of the large group health insurance underwriting will help you gain a little more insight before you start your search for a flexible insurance plan to offer your employees.

Although the limits for group size are mandated by the state, the ACA also defines their own standards. This is to assure fairness and affordability to all individuals regardless of their income level. California’s eligibility for large group size classification includes having 101 or more full-time employees. In California, a full-time employee works at least 40 hours a week and earns double the salary of an individual paid minimum wage.

What Large Group Size Means for Businesses

Large group size classification for a business comes with its own advantages regarding health insurance plans. The larger size of the business means a larger more accommodating group health plan. This means that the costs associated with your health insurance plans will lower, making them even more affordable.

Businesses of large group size that abide by the laws set for them will qualify for tax breaks. These tax breaks are usually better for big businesses and can ease some financial stress during tax season. Complying with the laws also qualifies your business for other discounts and financial perks.

How an Insurance Broker Can Help

A business is best off hiring an insurance broker for large group health plans. They already understand the insurance laws and large group health insurance underwriting. This makes it easy for them to determine your group size and help you find an accommodating health plan and employee benefit package that appeals to your employees and attracts other hardworking professionals seeking fresh opportunity.

Insurance brokers with history in the industry have a network of reliable insurance agencies they like to negotiate with. They’ll reach to these agencies to formulate the right large group health plan at a reasonable, low cost. They do whatever they can to help your business find the most comprehensive health plan.