When it comes to selling group benefits to businesses, there are two classifications: Small Group and Large Group. As you can imagine this refers to the size of the business—the number of full-time employees. The size of a business matters when it comes to insurance benefits. Read more to learn about the differences between small groups and large groups and how it’s possible to bridge the gap between them.
Large Group vs. Small Group
Large groups and small groups refer to a company’s employee count and therefore what benefit perks they can receive. Small groups refer to companies with two to 50 full-time employees. Large groups have more than 50 full-time employees.
One of the differences in insurance benefits between the two is regulations. Small groups and large groups have different sets of regulations, other than size, on insurance benefits, as well as different tax regulations.
The other biggest difference between small group and large group benefits is price. In many cases, small groups have no negotiating power when it comes to price. No matter what broker a small group uses, their prices will be the same. The prices have already been set. Prices for large groups, however, have not been set. Large groups have the ability to negotiate down their prices.
Aside from negotiating prices and some other factors associated with the Affordable Care Act, the price differences between small and large group benefits can also be attributed to benefit mandates. Small groups must meet all of the Affordable Care Act’s ten Essential Health Benefits, whereas large groups have more flexibility.
How Small Groups Can Get Large Group Benefits
Many employers of small groups want the luxury of negotiating price, but can’t because of the regulations on businesses with less than 50 full-time employees. That’s where Association Plans come into play.
Association Plans allow multiple small businesses to get the benefits of being a large group, including negotiating strength. By joining together and increasing the number of participants in health benefits, employers can qualify for large group health plans and can get competitive rates, flexibility with benefit plans, and more.
These plans are great for employers who want to provide the best coverage to their employees and want more control over their rates. With other perks like the same great service they expect and options for specialty products including dental, vision, life, optional life, and disability plans, there are very few reasons not to join an Association Plan.
If you want more information on Anthem Association Plans and how to market them to employers, download our guide here. AgentLink is here to help you provide the best service to your clients. Learn more about how AgentLink can help you sell Association Plans today.