It is true that if you do not fall sick, the money paid as health insurance premiums will be wasted over the years. However, rare is the person who had neither to ever get treated in a hospital nor had to take a family member to a hospital. Even those who feel that they would rather save the money than use it for getting medical insurance coverage should not deny coverage to others. In the case of the small business owners of California, even if they are controlling only a small group of workers, it is strongly recommended that they provide California Group Health Insurance for their employees.
California Group Health Insurance, as in the case of any group medical coverage, is a single California Health Insurance policy issued to cover a group of employees. Some of these policies may cover the dependents of an employee also. These California Group Health Insurance policies are quite different in nature from the individual insurance policies, which cover just one person or a family. An insurer has the right to refuse policies to an individual, and even when an individual policy is issued, it is done only after a thorough medical examination of the applicant, and scrutinizing of his medical history.
As different from this, under the California Small Group Law AB1672, the insurer has no right to refuse California Group Health Insurance to the employer because of the health condition of the employees. Even small employers whose number of employees may be anything as low as two, and may go up to only fifty, become eligible for California Group Health Insurance, as far as they satisfy certain criteria. Even in instances where employees do have health problems, this California Health Insurance law ensures that premium would only be slightly higher than the normal.
Because of the provisions of the law, small employers also get the right to purchase a California Health Insurance plan that is offered to other employers within the same geographical location. The law also provides that an insurer should not withdraw the California Group Health Insurance coverage of a small employer just because some of those insured have a health conditions that will prove a bit expensive for the insurer. The coverage can be canceled only if the employers fail to meet the following eligibility criteria.
One of the requirements that make employers eligible for purchasing California Group Health Insurance is that they should have been in business for more than two months. Another is that they should comply fully with the insurance company’s rules about the contribution required from the side of the employer and the participation required from the side of the employees. The employer should not indulge in any fraudulent acts against the insurer and should pay the premiums on time. Finally, the employer should provide California Group Health Insurance to all their eligible employees whether they are part time or full time.