- With few exceptions, small employers cannot be turned down. This is called guaranteed issue. If you employ at least 2 but not more than 50 people, health insurance companies must sell you any small group health plan they sell to other small employers. However, they can require that a minimum percentage of your eligible employees sign up for coverage. They can also require you to pay a minimum share of your workers’ premiums. If you wish to buy a large group health plan (one that covers more than 50 employees), your group can be turned down.
- If you are a small employer in Alaska, insurance companies initially must offer coverage to all of your eligible employees. Alaska law defines “eligible employee” as any employee whose normal work week is 30 hours or more. Even if you decide not to offer health benefits to all “eligible employees,” insurers must initially offer you a small group health plan that would cover all of your eligible employees. If you choose not to offer health benefits to all of your eligible employees, remember that you may not condition eligibility for health benefits on the health status of your employees or their dependents to decide who receives coverage, but you may use other factors such as part-time employment
- Your insurance cannot be canceled because someone in your group becomes sick. This is called guaranteed renewability and it applies to group plans of all sizes. Insurers can impose other conditions, however. They can require you to meet minimum participation and contribution rates in order to renew your coverage. Additionally, they can refuse to renew your coverage for nonpayment of premiums or if you commit fraud, or if they are discontinuing that insurance product. In the case of discontinuance, they must give you a chance to buy other plans they sell to groups of your size.
Do Insurance Companies Have to Sell Me Health Insurance?
