Group vs. individual

[Mr. Bill]

So this is a very small group 3 ee's, one in his 50's and the other 2 in their 30's. No dependents for any of them. All in good health, minimal utilization (just checkups), no prescription drugs, perfect candidates for individual coverage. I ran group vs. individual, indy much cheaper. I'm thinking we're seriously going to be looking at HSA plans.

Do you see any great risk with going off the group and onto individual?

Thank you for your response.

 

[Alston]

There may be some tax issues. The group plans may be easier to write off as a business expense.

You may get surprised and find that one of the applicants can't be underwritten. This may mean that all of the other individual contracts will need to be canceled so that they can go with a group policy.

If they plan on hiring more employees they may need a group plan eventually. If a new employee can't be underwritten for the individual plan, but can qualify for a group plan, this may be an issue.

Aside from the above, if they are happy with the plan design, I think you are doing them a service by selling them individual plans.

 

[Delta76]

A couple questions to point you in the right direction:

1. Do the employees currently pay a % of the premium? If so, how much?

2. In your state, is there a risk pool for the uninsureables?

 

[Mr. Bill]

They are with BC right now, we do have a pool for uninsurables yet I'm being told all is well health wise. Just don't want to get into a situation where BC cuts 'em.

I thank you so much for your responses!