Small Vs Large Group

[dandan]

The 30 are seperate and can stay seperate, but are decidiing whether to merge as one, group size now is 40.

 

[leevena]

The 30 are seperate and can stay seperate, but are decidiing whether to merge as one, group size now is 40.

Just want to make sure I was clear. When I say legally separate I mean that there are two legally entities, not one legal entity with two separate groups of employees. Based on what you said above, I suspect that there is one legal entity, not two. And if this true, then for group size purpsoses it will be counted as a large group at some point.

There are a few issues to consider, but the important ones are; loss of guaranteed issue, benefits offered may be different, pricing due to different underwriting guidelines, are the COBRA/state continuation issues, and lastly any effects on Section 125 if offered.

Good luck.

 

[ABC]

You might not have a choice of keeping them small if they are IRS code 414 compliant.

Now some carriers will allow you to insure the two groups separately but you better know which carriers will do that.

I would start calling the small group sales reps of the carriers.

 

[dandan]

Thank you!