Large groups are companies having more than 51 or more employees eligible for employee benefits. Eligibility is defined as an employee working more 30 hours per week and having passed the employee waiting period established by the employer. Companies may exclude part-time, seasonal and temporary employees.

Large group plans, unlike small group are not guaranteed issue. As such, a group with a very poor claims history might find themselves paying exorbitant rates. Or, a company can be declined or rated based on the prior claims experience. Large groups typically have employee rates that are composite rated. The rates could be two, three or four tier. Two tier is a rate for employees and a rate for families. Three tier might also break out a rate with dependents. Four tier would usually be an employee rate, employee and spouse rate, employee and children rate and employee, spouse and children rate (family). With a composite rate the insurance company or HMO has calculated a rate that would apply to an employee regardless of age, sex or location.

The final composite rate is usually determined by the actual group of enrolled employees. This can make getting a precise rate quote difficult if not impossible in some cases. A business won't know exactly the census of enrolled employees until they enroll. This is one of the reasons quotes have a disclaimer stating that the actual final rate is determined by enrollment. The larger the business looking for insurance the less this matters. Therefore, very large companies can receive accurate rate quotes in advance.

Past claims history plays an important role in determining if an insurance company is willing to offer insurance and at what rate. Underwriters will want to have as much information as possible. Sometimes insurance companies will quote without having this, but the danger is, the information would be asked at enrollment. If there have been health problems, the underwriter may decide to decline or rate up the company. Benefit personnel could find themselves in a predicament caused by agents anxious to get the company to commit, only to have an underwriter decline or raise the rate. Plans are usually scheduled to replace an existing health plan at renewal, leaving the company little opportunity to look elsewhere. It is wise to be sure the agent is provided good information and be sure the agent also gives the information to the insurance company.

Please call us at 800-986-4786 for more information about Florida group health insurance plans.