Illinois Group Health Insurance – The Carve Out Option
Posted on November 7th, 2009
When applying for Illinois group health insurance many employers dont know about all the different options they have. A question was posed to me not to long ago from one of my potential customers.
Question: My CPA told me that if I wanted to have an Illinois group health insurance plan I would have to offer it to all my employees. The only other option would be an individual Health insurance policy. Is that true?
Answer: Absolutely not true. What your CPA was probably referring to is the fact that you cannot discriminate within the work place. Some think that because you want to offer a group health plan to some employees, you have to offer it to everyone. But you can and many employers do have an Illinois group health insurance plan in place while not offering it to all employees. This can be accomplished by “Carving Out” the employees that you want to offer coverage too. In a “Carve-Out” situation you do not have to meet the typical Illinois group health insurance requirements that each carrier has to meet. For example, most health insurance carriers will require you to meet the following participation requirements, and this is different amongst the carriers, 50% of the group and 75% of the eligible employees. If this were not legal the health insurance carriers would not offer it as a solution.
While you do not have to meet the minimum participation requirements you do have other requirements that you would need to abide by in order to put such a plan in place. Because putting this plan in place incorrectly could have some serious consequences. If you are a business owner Ill go out on a limb and assume you would not like to be taken to court and sued for discrimination, correct?
So yes it is possible to offer Illinois group health insurance to a select few employees if that is what you want to do, as long as you set it up correctly.
This question and many others are why business owners need to seek out an agent that specializes in group health insurance. It would be nice if every employer could offer their employees the very best coverage available. But if you cant, learn what your options are and get professional help to set this type of plan up correctly.
Randy Gillespie is the owner of Focus Insurance Group, get expert help from an agent specializing in Illinois Group Health Insurance. To learn more visit his site at FocusInsGroup.com.
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Tags: Group Health, Group Health Insurance, Health Insurance, Option
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