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Why would a California health insurance carrier not be interested in insuring employees from a Professional Employment Organization?

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Why would a California health insurance carrier not be interested in insuring employees from a Professional Employment Organization?

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California Small Group health insurance carriers are interested in avoiding adverse selection across the membership pool. The possibility of insurance fraud could arise if an unscrupulous organization existed solely for the purpose of providing health insurance to individuals without a bonafide employer/employee relationship.

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