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
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
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
How well did you know this?
1
Not at all
2
3
4
5
Perfectly