Wednesday, December 27, 2006
Key Facts Regarding Small Business Medical Insurance In Illinois
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No employer in the state is required to offer health insurance benefits to its employees.
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Illinois law provides small employers with some administrative flexibility in offering employee health benefits:
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All licensed health carriers offering coverage to small employers must, at a minimum, offer two kinds plans - a deductible plan and a co-payment.
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Qualified small employers also are assured “guaranteed issue” and “guaranteed renewal” for their health plans.
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Guaranteed issue means that a health carrier cannot deny coverage to a small employer based on the health status of one of its employees, a family member, or the overall group.
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Guaranteed renewal means that once a health benefit plan is sold to a small group, the health carrier must renew that plan regardless of the health or experience of the group. Be aware that the premium may change significantly in case of a significant health change within the small business.
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Who qualifies as a small employer?
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Any person, firm, corporation, partnership, association or other entity actively engaged in business (including political subdivisions of the state) is considered a small business if:
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1. It employed an average of 2 but not more than 50 workers on business days during the preceding calendar year;
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2. And it employs at least 2 current employees on the first day of the health plan year.
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Do health carriers have to guarantee small employers coverage/renewal if they request it?
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1.Yes. Qualified small employers must be offered health benefit plans if certain criteria are met by the small employer if the small employer:
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1.Contributes at least 50 percent toward the cost of coverage for each eligible employee;
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2.and at least 75 percent of the eligible employees who have not waived coverage participate in the plan.
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