Small Group Health Rates in Indiana
Quotes Subject to Adjustment
For businesses of up to 50 employees, new business group medical rates are subject to an underwriting adjustment. This adjustment is based on overall group health and other factors such as employee participation in the plan. The State of Indiana regulates the degree of new business rate adjustment health insurance companies can apply to small group accounts.
New Business Rates Vary in Ranges
In Indiana, new business group health insurance rates can be adjusted by up to 105%.
For example, an Indiana business with healthy employees and good employee participation may qualify for a "most favorable" monthly medical insurance premium of $10,000. On the other hand, if the employees of this business are extremely unhealthy, the monthly health insurance premium could be as high as $20,500, a 105% adjustment over the "most favorable" premium.
Interpreting Small Group Quotes
In an initial presentation of small group health insurance quotes, most agents typically present "preliminary" rates reflecting favorable underwriting assumptions. However, any responsible agent should make clear the preliminary nature of the quotes -- that they're subject to upward revision based on insurance company medical underwriting review, which can only be accomplished after employees complete application forms.
A non-underwritten small group health insurance quote should not be used for any serious budgeting. However, if we assume most small group health insurance companies will produce somewhat similar underwriting adjustments (a reasonable assumption), we can at least use these "preliminary" quotes to narrow the number of health insurance companies potentially meeting your group's cost requirements.
To obtain a reliable underwritten quote, employee enrollment forms must be submitted to a health insurance company. Of course it's a hassle for employees to complete application forms for more than one health insurance company, but this is usually necessary if you want more than one firm small group health insurance quote.
Getting Favorable Rates
Approximately 25% of small businesses that apply for group health insurance receive the lowest "most favorable" rates.
Would your company qualify for group health rates in the "most favorable" range? It depends on various factors -- the primary factor being the health status of employees and their dependents. Other underwriting considerations include the total number of enrolling employees and the proportion of enrolling employees to eligible employees. For example, a 20 employee group may get a better underwriting outcome than will a 3 employee group. A group with 90% employee participation usually does better, other factors being equal, than a group with 50% employee participation.
Also, we'd like to point out that agents who anticipate underwriting issues and submit complete paperwork to health insurance companies sometimes get better rate results than those achieved by brokers who are less effective in dealing with insurance company submission requirements. In addition, working with an experienced group health insurance professional can make an important difference in speeding up the application process and minimizing the hassle you have to endure to get the right group health insurance plan in place.
