Group insurance is an insurance that covers a group of people, usually who are the members of societies, employees of a common employer, or professionals in a common group.
Group insurance may or may not be converted to individual coverage. As group insurance gets big business for an insurance company with minimum operational expenses (under one master policy issued to an employer, union or any recognized group), it is usually less expensive than individual policies.
Group coverage can help reduce the problem of adverse selection by creating a pool of people eligible to purchase insurance who belong to the group for reasons other than for the purposes of obtaining insurance. In other words, people belong to the group not because they possess some high-risk factor which makes them more apt to purchase insurance (thus increasing adverse selection); instead they are in the group for reasons unrelated to insurance, such as all working for a particular employer. We provide you with information of group insurance experts, please compare before applying.
Seven Proven Ways to Save Money on Group International Health Insurance
1. Group Insurance With Companies That "Pool" Small Groups
Some companies "pool" their small groups. A small group is generally defined as from 2 to not more than 50 employees. Claims that come in on one of the groups are spread over the whole "pool" of groups. A non-profit of three workers would be in a pool with 40 other non-profits; therefore, their claims would be spread over the 40 non-profits. The total employees in the pool might be 300 or 400. Obviously, a pool of groups like this helps keep rate increases reasonable if there is a major claim. A rate increase of 45% for an individual small group might end up being 15%-20% for a pooled group.
2. Ask for a rate-increase reduction, and if your present carrier won't give it to you, shop around.
Your present insurance carrier may give you a rate-increase reduction, if you ask them. Otherwise, every year shop around and get new quotes. A good broker or agent is able to get multiple "apples-to-apples" quotes from various international health insurance companies.
3. Get medical care outside the United States.
If your staff has excellent medical care outside the U.S., for example, in Europe or Bangkok or Singapore, consider a policy that excludes coverage in the States. Your staff will be able to get insurance for short-term plans that include:
--furloughs or vacations
--travel through the States on their way to another country
--temporary insurance for the transition between when they cancelled US coverage and their departure date
--reassignment back in the US and needing temporary coverage
You can also shop for a policy that rewards your employees for getting medical care outside the U.S.
4. Help seniors get Medicare insurance.
Require that all staff over 65 relinquish coverage on the group plan. Help them get Medicare insurance, plus a Medicare Supplement plan and a medical evacuation plan. Often they will save money doing it this way!
5. Screen new candidates carefully.
If you accept new employees with high-risk health problems, this will no doubt show up in your insurance rates in a few years.
6. Increase deductibles.
Increased deductibles lower premiums. If you can't do that, limit some of the benefits.
7. Get individual evacuation plans rather than group plans.
Consider getting individual medical evacuation coverage for your team. Sometimes group medical evacuation is more costly than individual medical evacuation plans.
Good Neighbor Insurance can help you sort out which cost-cutting measures will best benefit your group. We can also help you with health insurance if you are returning from an overseas post. Call us toll free at 866.636.9100 or visit our website at http://www.gninsurance.com
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