jackflashdrive
Expert
- 29
If you have a small office with 5 or less people, and they are on a group policy, and all qualify for a major medical, why would or would not you try to break up that group and put them all on individual health plans?
My thoughts:
- If someone in the group gets very sick premiums for the rest are going through the roof. And then the others cancel, the group falls apart, and the sick (uninsurable) person no longer has coverage.
- The employer and employees are going to pay less and get better coverage.
- You make a whole lot of money. A friend of mine just broke up and wrote up an office of 9 healthy people and made ~$6K.
- Yet, I've been told by some to never break up a group for liability reasons. I understand this when it comes to breaking up a group when it leaves someone uninsurable. But what if everybody is in a better spot than when you started?
My thoughts:
- If someone in the group gets very sick premiums for the rest are going through the roof. And then the others cancel, the group falls apart, and the sick (uninsurable) person no longer has coverage.
- The employer and employees are going to pay less and get better coverage.
- You make a whole lot of money. A friend of mine just broke up and wrote up an office of 9 healthy people and made ~$6K.
- Yet, I've been told by some to never break up a group for liability reasons. I understand this when it comes to breaking up a group when it leaves someone uninsurable. But what if everybody is in a better spot than when you started?