Small Group Health Rates in Illinois
Quotes Subject to Adjustment
For businesses of 2-50 employees, new business group medical rates are subject to an underwriting adjustment based on overall employee/dependent health and other factors such as percentage employee participation in the plan. The State of Illinois regulates the degree of new business rate adjustment which health insurance companies can apply.
Rate Caps Apply
In Illinois, new business group health insurance rates can be adjusted within a 67% range.
For example, an Illinois business with healthy employees and favorable plan participation may qualify for a minimum monthly medical insurance premium of $10,000. On the other hand, if employees of this business are particularly sickly, the monthly health insurance premium could rise as high as $16,700, a 67% adjustment over the minimum monthly cost.
Interpreting Small Group Quotes
In an initial presentation of small group health insurance quotes, most brokers (typically knowing little about employee/dependent health status) present "best case scenario" rates reflecting the assumption that the group is quite healthy.
However, such a presentation should include a statement that rates are subject to upward revision based on an insurance company medical underwriting review.
The medical underwriting review can be accomplished when the insurance company reviews enrollment forms completed by the employees.
Getting Favorable Rates
Less than 25% of small businesses (2-50 employees) that apply for group health insurance receive the lowest "best case scenario" rates.
Would your company qualify for group health rates in the "best case scenario" range? It mostly depends on the health status of employees and their dependents. There are also secondary factors:
- The degree of plan participation matters. A group with 90% employee plan participation will get more favorable consideration than a group with 50% participation.
- Employer size makes a difference. A group of 10+ employees will likely get -- other factors being equal -- better rate treatment than a group of 2 or 3 employees.
- Insurance company underwriters have normal human tendencies and may be positively influenced when your broker submits a complete group application package, which the underwriter can more easily evaluate.
