Small Enterprise Owners Pay a lot For Health Insurance Washington
The truth is, many group health insurance plans come with higher price than individual health policies.
Additionally, the employees own their individual plans, which means there is no need for COBRA protection if they leave their current employer since companies with less than 20 employees don't offer COBRA coverage anyway, individual health plans become even more attractive.
The biggest benefit of individual Health Insurance Washington plans over small group plans is price. Individual health plans usually provide lower premiums compared to group plans. The reason behind this is risk. Individual health insurance in Washington State demands a health risk set of questions to be completed as part of the application process. The purpose of the health questionnaire is to">
Most individuals pass the list of questions with ease. When they do, they fall into the same cluster as everyone else that also passed the same questionnaire, which represents a lower risk for the insurance company, thus lowering rates. (Those who do not pass the health questionnaire are offered the chance to register on the Washington State Health Insurance Pool, a high-risk pool with considerably higher premiums) When a company has an employee who does not pass the health questionnaire, subsequently it can still show less expensive to cover the high risk pool premium for that employee versus spending higher group rates for all workers.
Group plans in Washington don't have a health questionnaire, so the insurance firm has no way of "weeding out" the unhealthy workers. Groups with less than 50 employees are "community rated" meaning they are in the same risk pool even if their workers have low utilization or high. Thus, the small business with healthy employees results in spending a higher rate due to other businesses that may have personnel with expensive high risk chronic health problems.
Offering individual health plans to staffs comes with more benefits than just reduced price. They also come with much less management. Unlike group plans, no renewals required for each year, no minimum participation needed imposed by insurance carriers, and also no required minimum employer contribution either. Employers still have the ability to define qualifications, probation periods, and may design their health benefit package deal with more options and flexibility.
Small Enterprise Owners Pay a lot For Health Insurance Washington
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