I am liking what I see in the last luminos summary HSA that you sent over. It is important that we receive a company policy not a group policy. Is this possible with this type?
Got an email from a prospect. They own a small business, but they told me on phone they are not interested in a group plan, just a policy for owner and wife.
Does anyone have any idea what they mean by a "company policy not a group policy"?
I am assuming that they meant an individual policy underwritten by Anthem = "company". You can also have the policy written using the owners company name if they want to pay using company checks/credit card - perhaps that is why they asked.
Best thing to do is to call the prospect and ask for clarification.
It may depends on what state you are in, here in CO you CANNOT put an individual plan in your company name. You can not list bill here either which kind of sucks. I'm not sure about other states, but I'm pretty sure it's the same as here.
Kris is correct about placing the policy using the company name. In CO, if they answer "yes" to a series of 4 questions pertaining to "Self Employed Business Group of One Determination", they can pay the premium using a company check or credit card. It does not mean that they are signing up for a group policy - only that they can qualify for it. CO has some strange rules about this. If they answer "yes" to the questions, and elect to go with individual coverage, they waive their rights to start a group plan for 3 years. It seems to be a state sponsored scare tactic to push group coverage.
I'm almost 100% sure of this. In California, it is legal for a business to pay for an individual employee. Still subject to non-discrimination laws of course.
So maybe they're either
1) Looking for individual policies for everyone on a list bill to the company or
2) They are idiots.
Rick
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Kris is correct about placing the policy using the company name. In CO, if they answer "yes" to a series of 4 questions pertaining to "Self Employed Business Group of One Determination", they can pay the premium using a company check or credit card. It does not mean that they are signing up for a group policy - only that they can qualify for it. CO has some strange rules about this. If they answer "yes" to the questions, and elect to go with individual coverage, they waive their rights to start a group plan for 3 years. It seems to be a state sponsored scare tactic to push group coverage.
You want to know something that's sad and corrupt about this!
I had several business groups of 1 that I have wrote over the past 2 years, all on individual plans before I converted them to a BG1. The law says if you qualify for a BG1 you waive the right to start a group for 3 years. I have converted 2 "HEALTHY" clients from individual plans to BG1's within the 3 years, no problem! They are healthy, why not!!
I just tried to covert a client who has been on an individual plan for a year now to a BG1, 2 separate carriers have declined him because they said he is ineligible for 3 years based on that law.
So insurance companies have no problem converting healthy people from indy plans to groups, but once you submit one who is not the healthiest the rule changes!!! It's BS!! This carrier that declined based on this rule will never ever see another piece of business from me!! DONE!! Thanks Anthem BCBS!! You've inspired me to never write for you again! Nice work!
I'm almost 100% sure of this. In California, it is legal for a business to pay for an individual employee. Still subject to non-discrimination laws of course.
So maybe they're either
1) Looking for individual policies for everyone on a list bill to the company or
2) They are idiots.
Rick
Actually, I'm pretty sure in California, a company cannot directly pay for individual policies. That said, I'm sure they can offer each employee $150 (or whatever) in benefit dollars per month, for the employee to do with as they please, such as paying their own health premium. This would then be taxed to the employee as income, and the business can write it off. This effectively amounts to the same thing.
Of course, in small business, nobody would monitor such things, so I'm sure lots of business pay for individual plans, but you run into problems as soon as one employee is uninsurable.
Actually, I'm pretty sure in California, a company cannot directly pay for individual policies.
From what I remember, that law was changed a couple of years ago and it is now legal. Again, I'm only 90% sure so maybe one of us (you) should check with a carrier.
In MD owners cannot contribute towards the premiums for an employee's individual plan. However, if they were to add an extra amount into their check each month for a "good employee" bonus that's another matter
From what I remember, that law was changed a couple of years ago and it is now legal. Again, I'm only 90% sure so maybe one of us (you) should check with a carrier.
Rick
Hmm, maybe I will. But then, maybe not
I tend to sell group to small groups, usually due to a need to have group, so it doesn't come up much. This is also something that I'm only 80% sure of, but then, I'm not sure what I'm sure of.....
"company policy not a group policy"?
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