How can a plan be mandatory when employees have to pay for a portion of the benefits?
This is a necessary in order for the insurance companies to be able to offer a group plan to most small businesses. The reason for this guideline is to avoid what is called anti-selection. Anti-selection is where the unhealthy employees choose coverage, while the healthy employees do not. However, the rates would be completely unaffordable if only the people who needed the benefits were able to enroll.These guidelines allow the insurance companies to spread the risk and offer coverage to smaller businesses at very low rates. It should be conveyed as a condition of employment from the beginning When new employees join your company. For further information, please do not hesitate to contact us.
