- Staff
- #21
- 1,571
As it stands now, very few states allow the insurance company to break down group premium into different numbers, based on age. Usually, there is one premium per employee, and it is uniform, weather they are young or old.
In a few states, they list a different premium for each employee.
The benefit is that when the young people on a group policy are not subsidizing the old ones, you get a better selection, and the adverse impact is minimized.
The downside is, employers who pay a healthy share of the costs may try to hire younger people, so as to minimize the premium impact.
If the companies start underwriting individually, it is going to be very difficult to not hire someone who has diabetes, because it is a discrimination lawsuit waiting to happen.
In a few states, they list a different premium for each employee.
The benefit is that when the young people on a group policy are not subsidizing the old ones, you get a better selection, and the adverse impact is minimized.
The downside is, employers who pay a healthy share of the costs may try to hire younger people, so as to minimize the premium impact.
If the companies start underwriting individually, it is going to be very difficult to not hire someone who has diabetes, because it is a discrimination lawsuit waiting to happen.
