SUMMARY OF THE MAJOR FACTS
GreenHealth Insurance is dropping a number of small-group health insurance product due to financial losses over the last two years. Small group are companies with 2-50 employees, fully insured on a guarantee-issue basis, meaning small business cannot be denied coverage due to health status or illness of its employees or their dependent. GreenHealth will continue to offer some small group products in the state but at a higher premium rate with less attractive benefits. Discontinued products are the high in demand product which have cost the company financial losses. This leaves small group consumers with no other option to choose from. Small employees are limited in the plans that they can purchase and offer their employees. …show more content…
Small group are companies with 2-50 employees, fully insured on a guarantee-issue basis, meaning small business cannot be denied coverage due to health status or illness of its employees or their dependent. GreenHealth provides a service but needs to make some financial gains as well.
The problem is premium rates (everyone pays the same price), guarantee issue (health plans cannot turn individual or groups down regardless of their condition) and no requirement that anyone within a market buy insurance.
Small employees are limited in the plans that they can purchase and offer their employees and with such limitation, some employers may opt out of GreenHealth which would decrease the revenue of GreenHealth.
The small group product line will result in lower risk membership and lower revenues through reduced premiums but will also have higher returns.
Due to the high cost of premiums, employees are going to continue to shop around and look for the better bargain or decline/opt out of health insurance which would result in them having a lower financial obligation or obtaining no insurance premium at
GreenHealth Insurance is dropping a number of small-group health insurance product due to financial losses over the last two years. Small group are companies with 2-50 employees, fully insured on a guarantee-issue basis, meaning small business cannot be denied coverage due to health status or illness of its employees or their dependent. GreenHealth will continue to offer some small group products in the state but at a higher premium rate with less attractive benefits. Discontinued products are the high in demand product which have cost the company financial losses. This leaves small group consumers with no other option to choose from. Small employees are limited in the plans that they can purchase and offer their employees. …show more content…
Small group are companies with 2-50 employees, fully insured on a guarantee-issue basis, meaning small business cannot be denied coverage due to health status or illness of its employees or their dependent. GreenHealth provides a service but needs to make some financial gains as well.
The problem is premium rates (everyone pays the same price), guarantee issue (health plans cannot turn individual or groups down regardless of their condition) and no requirement that anyone within a market buy insurance.
Small employees are limited in the plans that they can purchase and offer their employees and with such limitation, some employers may opt out of GreenHealth which would decrease the revenue of GreenHealth.
The small group product line will result in lower risk membership and lower revenues through reduced premiums but will also have higher returns.
Due to the high cost of premiums, employees are going to continue to shop around and look for the better bargain or decline/opt out of health insurance which would result in them having a lower financial obligation or obtaining no insurance premium at