Many people assume "Florida Small Group business health insurance" to be less expensive then "Florida Individual health insurance" where in fact, the exact opposite is true. The reason group coverage issued through an employer is so expensive results from it being guarantee-issue coverage where no one can be declined, as well as the fact that there are so many mandated benefits (like maternity coverage) included in the coverage. The combination of these factors drives up the costs.
A carrier may require that at least 75 percent of a small employer's eligible employees elect for membership as a condition of offering a plan. Carriers must always "round up" when calculating the percentage. For example, a five-person business with only three employees wishing to participate satisfies a 75 percent requirement by rounding up. However, in the case of a business with only two eligible employees, the law requires 100 percent participation. A husband and wife working in a business must be counted as two separate employees. The two employees will not be eligible for coverage as a dependent of one another.
A key requirement of small employer status is that coverage must be made available to all qualifying full-time employees and their spouses and dependents under the same terms and conditions, whereas a large employer may exclude spousal and dependent coverage and impose specific eligibility criteria for plan membership. Small employer status also protects the employer by mandating some percentage limitations on annual rate increases. State law also contains many fewer provisions for specific medical conditions that are required to be covered by small employer health plans.
If you have a small group of less then 5 employees and everyone is in fairly good health - save yourself a lot of effort and talk to us about our individual plans. The only reason to get a Group coverage these days is if someone has a preexisting condition that might be declinable or Ridered on an individual plan.