Small Company Employee Benefits Flashcards
1
Q
Small Company Employee Benefits
Why is Group Medical Challenging for Small Companies?
A
- If fully insured, they are subject to state-mandated plan options
- Plans must use options available in small geographic area
- Provide documentation so insurers can verify not just banding together of people solely to obtain insurance
2
Q
Small Company Employee Benefits
Reasons why Small Company Should Require EE Contributions for Medical
A
- EEs are accustomed to paying some level of contribution
- Motivates EEs who have coverage elsewhere to decline their small ERs plans
- Changing to contributory plan at later date can create EE ill will
- To avoid legal problems when EEs opt out of noncontributory plan