Do Insurance Companies Have to Sell Me Health Insurance?
- 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 employees, health insurance companies must sell you any small group health insurance policy they sell to other small employers if the employer group meets the participation requirements. They can also require you to contribute a minimum percentage of your workers’ premiums. They can also require you to pay a minimum share of your workers’ premiums. If you are buying a large group health insurance policy for 51 or more employees, your group can be turned down.
- 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 health plan or if they are withdrawing from the small employer market. In the case of discontinuance, they must give you a chance to buy other plans they sell to groups of your size.
