Pros and Cons Individual Plans for a Group.
- Thread starter cusaba
- Start date
- 1,861
I'm in Florida and I want to know what are the pros and cons of selling individual plans to a small group. Can the employer pay full premium? part of it? I can't find anything solid on the topic.
Help as always appreciated!
Employer cannot contribute to any portion of the premium. Employer can collect and remit premium from/for employees......if employer contributes to the premium, the policy is effectively governed by ERISA/HIPAA, and an individual policy is obviously non-ERISA compliant in a multitude of ways......
Go read up on ERISA, before someone gets sued......
Employer could in most cases, give the employee a set amount of money as bonus or raise or what not (intended to help with IFP), but it must be usable for whatever the employee wants to spend it on, healthcare or otherwise....
- 4,707
Most noteworthy,
Individual plans are not guarantee issue, and, most individual plans now limit (separate deductible), or, don't cover maternity.
Group health plans are guarantee issue and include maternity.
Why would you even consider writing individual plans when there is an employer/employee relationship? Are the premium less than group in your state?
- 9,744
In Florida, ifp is about 30-50% less than group. Problem is, it's illegal to replace group with ifp if group has been in force within the last six months...
There are two kinds of people in the world, those that have group plans and those that have individual.
Trying to write individual plans on a group is largely a waste of time if the employer is not paying the premium. Generally, their wages are too low to afford an individual plan. Been there, and it wasn't pretty.
Great thing about NC, the minimum number of emps for list bill is so high, we don't get bogged down with those worthless requests from small biz.
You didn't mention the size of the group, but small group premiums(less than 5) are way higher than individual.
Trying to write individual plans on a group is largely a waste of time if the employer is not paying the premium. Generally, their wages are too low to afford an individual plan. Been there, and it wasn't pretty.
Great thing about NC, the minimum number of emps for list bill is so high, we don't get bogged down with those worthless requests from small biz.
You didn't mention the size of the group, but small group premiums(less than 5) are way higher than individual.
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- 4,707
Is IFP GI and maternity is covered?
- 9,744
Think it would be 30-50% less if it was GI?
Maternity can be added to ifp by rider if needed (although a couple of carriers recently stopped).
Agentjane
Expert
Now that's what I'm looking for....
Here's my question...even if the group has the participation level ...?That means an employee can't change their mind until six months pasts?
- 4,707
Think it would be 30-50% less if it was GI?
That was more of a rhetorical question......
- 4,096
The group needs to be healthy. Most important the owner and his family need to be healthy.
If they are and you can get everyone approved you can set up HSA plan and the owner can contribute money to the employees HSA accounts.
I have done this in the past and its worked out very good.
You do need to have the ability to sell this plan design not just to the owner but to the employees.
If they are and you can get everyone approved you can set up HSA plan and the owner can contribute money to the employees HSA accounts.
I have done this in the past and its worked out very good.
You do need to have the ability to sell this plan design not just to the owner but to the employees.
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