A Guide For Small Business Owners

A Guide For Small Business Owners


Your Business….

A Guide For Small Business Owners

Coverage that's healthy for your business

Making the best choices...


Playing the numbers game
When it comes to buying group health insurance, there is strength in numbers. And, big numbers have traditionally gotten the best deal. In 1999, according to The Wall Street Journal, 70% of Americans obtained coverage through their employers. Many of those employers are large companies with strong-arm power at the insurance bargaining table. As a small business owner, however, there is no reason to feel left out. has all the tools you need to find the highest quality coverage at the best possible price.

Cornering the small-group market
Small-group refers to the number of employees in a given company. It can be as many as 100, but is most often 2-50 employees covered under a company's group insurance plan. In this market, health insurance prices have traditionally been based mainly upon two factors:

  • Projected cost of medical services in a given geographic area
  • Projected utilization of services

Cost projections are fairly stable across the country. But insurance companies estimate utilization of services probability on factors ranging from your employees and their dependents medical history, to age and gender. These details affect plan premiums to you and your employees. If a member of your staff is considered a greater risk the group will usually pay a higher premium for insurance coverage.

The importance of underwriting
The majority of small-group health insurance companies use a process called underwriting. An underwriter analyzes risk factors (including the medical history of each individual) to estimate potential claims and determine a group's insurability. The insurer's goal? To offer coverage at a fair price and to assure adequate income to pay future claims and expenses.

Small Business Coverage Options:
Regardless of whether you are a small company or a Fortune 500 giant, you want to make sure you are getting your money's worth out of a health plan. It's important to weigh the pros and cons of each choice when selecting a plan. While premiums vary among different carriers, recognize that there can be substantial differences in the benefits provided, and in what your employees must pay out-of-pocket for services., 15 West 36th Street, Suite 10N, New York, NY 10018. Tel: 212-594-2904; Fax: 212-594-4649.