TYPES OF MAJOR MEDICAL COVERAGE

Group Plans
Fulfilling your insurance needs may prove
relatively simple if your employer offers
a group plan or a choice of plans. Group
plans cover several people or groups under
one policy. You will receive a certificate
that acts as your policy when you obtain
insurance through a group plan. Most
group policies are suitable for the average
person and may include provisions to cover
family members.
Businesses with one to 50 employees have
access to guaranteed-issue group plans,
often referred to as small group health
coverage. Guaranteed-issue coverage for
a one-life group (a self-employed individual
with no eligible employees) is only available
during the month of August each year, with
the policy being effective on October 1.
These plans are available to small-business
employers regardless of the health claims
experience of an employee group or the
health status of an employee. Insurance
companies and HMOs that offer small group
coverage must offer employers the option
of purchasing a basic or standard plan.
Most insurers or HMOs offer other healthbenefit
plans in addition to the basic and
standard plans.