How NJ Small Business Health Insurance Companies Offer Low-Cost Health Insurance

How NJ Small Business Health Insurance Companies Offer Low-Cost Health Insurance

Article by April Gilbertson

Small businesses are those that have from two to 50 employees and NJ Small Business Health insurance regulations stipulate that these businesses have to follow certain rules when offering health coverage. However, because the insurance offered by the small business to the employee is typically a group policy, it is simpler for the employees to qualify for and receive coverage as compared to people attempting to qualify for and receive individual or private health care policies. Additionally, because the policy is a group policy, special discounts apply when so many employees opt in to receive coverage, making the total monthly and yearly premiums cost less. For example, in a small business where 20 of the 40 employees opt for coverage, premiums for those employees may cost about 400 per month. However, if 30 of the 40 employees opt to receive coverage, premiums may cost only per month. The idea is that the more people opt for coverage, the less the total health care benefits package costs and that discount is then applied to the entire lot of employees.

However, NJ Health insurance laws state that a health insurance company cannot change the premium amount from one person to another. For example, if employee “A” opts for medical and dental insurance, he might pay per month to keep that coverage. If employee “B” opts to receive the same medical and dental