Group Medical Insurance

Written by Norene Anderson
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Group medical insurance is available in many types of policies. Employers of companies with more than 50 employees most often will offer group coverage as a benefit to employees. This may be in the form of an HMO, PPO, or POS plans. Most individuals are familiar with the managed care plans of HMOs (Health Maintenance Organization) and PPOs (Preferred Provider Organization). POS (Point-of-Service) is not as well-known or used.

The main difference with a POS is the option for the primary care physician to make a referral outside the network. The downside of that is the reduced amount of compensation provided by the carrier. The deductible for a non-network provider is much higher than one on the provider list. The options of plan types are generally limited when offered by employers as a benefit.

More Group Medical Insurance Options

Group medical insurance for companies with 50 or less employees is offered in the form of small group health insurance. Each state regulates the small group insurance. Most states have the same requirement that one small business must be offered the same policy offered to other small businesses in the state. Most states also make provision that insurance companies may require a certain number or percentage of the employees to enroll in order for the company to receive coverage.

Since each state has the option of regulating small group medical insurance coverage, it is important to verify the requirements in your state. These regulations cover the way premiums are set, if or when policies can be denied, policy cancellation restrictions, and many other areas. Check with your state's department of insurance for details.

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