Health Insurance Enrollment for Groups
Our previous blog discussed the approaching open enrollment season for healthcare coverage in the US and how to prepare. Open enrollment is the time period each year when individuals are allowed to begin or make changes to their health insurance plans. Individual enrollment is for people who do not have employer-sponsored coverage. If you fall under this category, please refer to our previous blog post.
Group health insurance provides healthcare coverage to a specific group of people, often employees of a company or an organization. If you fall under this type of coverage, your employer may: give you a choice of health insurance plans, pay for a portion or most of your monthly premium by deducting your share of the premium from your paycheck.
There is no set time of the year for open enrollment for group coverage, as typically the open enrollment is 30 days prior to the renewal date. Employees may enroll outside of the groups open enrollment period at any time throughout the policy year, as long as they qualify for group coverage and have a life event. Typically,to qualify for group coverage you must have proof of a legitimate business, at least two full-time employees with at least one enrolling in the group plan and the sponsoring business typically must contribute at least 10% of premium costs, although this can vary by state. Group plans are normally annual contracts with the effective date and renewal date being the same month of the calendar year. In the US, January 1st is the most popular policy effective and renewal date for group plans.
To help make educated choices during group enrollment, ask about any benefit modifications that are being made to your available plans, premium contribution changes , and how to elect a different plan if you prefer next year. Write down any questions you have and plan out a budget for your coverage. Your broker can answer any questions regarding your plan and the other plans you are considering.
Being prepared for this process will make enrollment quick and easy! Call Benchmark Planning Group to get started on your open enrollment today and learn more about our health coverage offerings.