How to Have a Group Treated As a Group?

[need2know]

I'm trying to market P&C and Health coverge to a buying group and am getting hung-up on the way the group is organized. Health companies can't treat them as a group b/c they have no structure/organization that's over all the businesses.

Anyone have any ideas how to get them to be treated as a group?

Some kind of subsidiary LLC that they all join or forming a non-profit is all I can think of, but would that look like it's formed just for insurance? Even though the 'group' has been around for 10+ years.

Thanks to all.

 

[ABC]

Unless the group is willing to form a corp. you can't treat them as a group.

 

[somarco]

Almost impossible to get a true group plan issued to what amounts to an association. Too many abuses in the past. Best you can hope for is an endorsement to write individual health insurance, something like AARP does.

Some Chamber of Commerce associations have worked out "deals" with carriers (such as Blue) to offer a "discount" to employer groups if they are Chamber members. We have such an arrangement in GA. Each local chamber agrees to promote Blue as the endorsed provider to their members. If members qualify for small group (2 or more full time employees) they get a 5% discount off group rates.

There are some white collar trade associations that offer true group plans to their members but these have become quite scarce.

 

[djs]

As they say, follow the money.
Does everyone get paid from the same source, i.e., the same company? If not, then they are not a group.

Or, more precisely put, is everyone listed as employees on a DE-6? Or owners in the (same) company? If not, then the money says they are not a group.

There are reasons that carriers are not very loose with group rules, at least not in California. Of course, I'm not sure what state you are in, but it probably doesn't matter to much.

Dan

 

[need2know]

Regarding the endorsement you mentioned, is that from the carrier, the state(s), or both?

Thanks Somarco,
Thanks All.

Almost impossible to get a true group plan issued to what amounts to an association. Too many abuses in the past. Best you can hope for is an endorsement to write individual health insurance, something like AARP does.

Some Chamber of Commerce associations have worked out "deals" with carriers (such as Blue) to offer a "discount" to employer groups if they are Chamber members. We have such an arrangement in GA. Each local chamber agrees to promote Blue as the endorsed provider to their members. If members qualify for small group (2 or more full time employees) they get a 5% discount off group rates.

There are some white collar trade associations that offer true group plans to their members but these have become quite scarce.

 

[somarco]

The group can endorse an agent and/or carrier to be the "go to" person. AARP, Sam's, Costco and others have integral relationships with agents who are the endorsed provider.

Dave Ramsey has the same.

In the case of the GA Chamber, a local agency that is a GA of sorts for Blue and other carriers worked an arrangement with Blue to discount rates in exchange for an endorsement by the Chamber. When an agent completes an application for small group health one of the questions asks about Chamber membership.

If they check yes, they get 5% off the rates. The agent still is listed as the servicing agent and is paid the regular commission percentage but everything flows through the Chamber GA and they get a cut as well.

 

[need2know]

Thanks again Somarco, I really appreciate your help. And this sounds like the most realistic pursuit. Now to figure out all the moving pieces and variables of this group.

The group can endorse an agent and/or carrier to be the "go to" person. AARP, Sam's, Costco and others have integral relationships with agents who are the endorsed provider.

Dave Ramsey has the same.

In the case of the GA Chamber, a local agency that is a GA of sorts for Blue and other carriers worked an arrangement with Blue to discount rates in exchange for an endorsement by the Chamber. When an agent completes an application for small group health one of the questions asks about Chamber membership.

If they check yes, they get 5% off the rates. The agent still is listed as the servicing agent and is paid the regular commission percentage but everything flows through the Chamber GA and they get a cut as well.