Group Medical Insurance Laws of Florida
The laws of the State of Florida provide for a variety of group medical insurance options. These include large group, small group and even group of one medical insurance policies.
A decreasing number of employers in Florida are offering group medical insurance to their employees. Moreover, with the rising costs associated with group medical insurance in the Sunshine State, those employers maintaining group medical insurance for their employees are requiring their workers to pay a higher percentage of the premium cost.
Regulation
Group medical insurance in Florida is overseen by the Florida Office of Insurance Regulation. The Florida Office of Insurance Regulation is managed by the Insurance Commissioner for the state.
The Commissioner and the Office of Insurance Regulation is responsible for everything from approving which health insurance companies can do business in the state to approving or disapproving proposed premium rate increases requested by different medical insurance companies doing business in Florida.
The commissioner maintains a consumer assistance division that assists residents of Florida with problems and issues arising out of their health insurance policies, including group coverage.
Small Group
Small group medical insurance policies are for employers or associations with five or fewer individuals covered by such policies. Generally speaking, because fewer individuals are part of such groups, the costs for small group medical insurance coverage tend to be higher than what is charged for a larger group.
One option available in Florida is for more than one insurable group to associate with another similarly situated group to purchase health insurance coverage. For example, a number of private schools can come together to purchase group medical insurance for their teachers. These combined groups often obtain a far more favorable premium rate.
Large Group
Large group medical insurance policies are designed for businesses and organizations with five or more covered employees or members. Because in theory the risk associated with insuring the individuals is spread among a larger number of individuals, the cost associated with large group health insurance coverage tends to be less expensive than that of a small group health insurance policy.
Typically in Florida an employer will be part of the group medical insurance premium and the employee will pay a contribution to the premium as well.
Group of One
Florida law even permits the issuance of a group medical insurance policy when that group will only consist of one employee or individual. Because the group is composed of only one insured, the cost of this type of policy likely will not be different from a comparable individual policy. However, some benefits are associated with a group of one medical insurance policy not available in an individual policy.
The most important benefit is what commonly is referred to as portability. If a person goes from one group medical insurance policy to another without any interruption in coverage, that individual will not have to satisfy any waiting period for a pre-existing condition when he obtains coverage under a new group policy.
COBRA
No matter the specific type of group medical insurance policy, if that employee terminates employment that individual is entitled to a continuation of medical insurance coverage under that group policy. The employee can continue coverage for up to 18 months in most cases.
Pursuant to COBRA, the former employee is responsible for paying the entire premium during the continuation period.
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