Requirements For Small Employers continued
Fair marketing standards
If an insurance compnay is going to sell group policies to small groups, then they have to market to all groups that size and not be selective about which employers are marketed to. All plans issued are issued on a guarantee issue basis, as discussed in the past couple pages. The insurance company is not allowed to encourange an employer not to submit an application from a competing insurance company.
The insurance company is not allowed to incentivize or punish agents based on the risk presented by the group they took an application from. All commissions are a percentage of the premium and can not vary due to varying insruability factors. If an application is denied, the denial has to be in writing and has to state the reason for the denial.
Benefit plans offered
A small employer carrier must file the following with the state and must offer to any small employer:
- a standard health care plan,
- a high-deductible plan that meets the federal requirements of a health savings account plan or a health reimbursement arrangement, and
- a basic health care plan to be used by the carrier.
