What is a Large Group Health Plan in Health Insurance?
<lingo>A large group health plan is a type of health insurance plan for a single employer’s group of employees. Group insurance is different from individual coverage. With group coverage, the employer will pay all or some of their employees’ premiums. Employees will also be able to choose between various approved plans.
There are two types of group plans: Large group and small group. The Affordable Care Act (ACA) places a large emphasis on group size, designating specific requirements and options for each type of employer. Generally speaking, large group health plans are for employers who have more than 50 full-time employees, and small group health plans are for employers with 50 or fewer full-time employees.</lingo>
Large Group Health Plans Clearly and Briefly Explained
If you are an employer buying insurance for your employees, it is important to know if you’ll need to purchase a large group or a small group plan. This is principally because, when it comes to cost, large group health plans may provide a broader range of price options. By contrast, prices for small group health plans basically do not change; they are the same for all employers, no matter the varying factors that would otherwise have an influence on premium prices.
There are other factors that make large group health plans different from small group health plans. Most importantly, large group employers can select from a broader selection of plan options.
<twitter>A large group health plan is a type of health insurance plan for a single employer’s group of employees.</twitter>
Some employers may be confused about whether they qualify for large group health plans or small group health plans. First, it’s important to know what the Affordable Care Act deems as a “full-time” employee. According to the ACA, a full-time employee is any employee who works at least 30 hours per week, on average.
Also remember that the 50 full-time employee cap is a general rule; but this number can vary by state. For example, in some states, large group health plans are for employers who have more than 100 full-time employees. If you have 100 or fewer employees in these states, you would need to purchase a small group plan.
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