Group Health Plan for Employees in Two States
I am looking for someone to cover my company with employees living in Washington DC and Texas.
In looking for a health insurance company to cover employees in multiple states, you need to contact insurance companies that operate in the state where you have your business headquarters. Health insurance is state regulated, so the laws that govern the industry in the District of Columbia are quite different than those in Texas. Many insurance companies will provide coverage for employees working outside of the state where you are headquartered, but the regulations on this may vary by state law and also the policies of individual health insurance companies. Typically, if an insurance company will provide health care benefits to an out-of-state employee, that employee must reside in a state where that insurance company has a network of participating providers. There may also be requirements that your policy must be written in the state in which the greatest percentage of your eligible employees reside. Finding an insurance broker that represents multiple insurance companies can save you time in doing all of the research yourself.
My experience is this: It is possible to pull of if you do it the right way. There are some plans you want to avoid, especially if you want to cover all your employees under one plan, which I think is what you want? You should avoid a HMO plan as your employees will not be able to go for help outside the network, as these plans are specific to your area. A PPO plan would work much better because it allows you to go outside the doctors network, however the cost for your employers and you will be higher. There is also the option of an indemnity plan that does not have any network, however be prepared that the premium is usually up to 30% higher than a standard PPO. One issue that can cause problems for your employees depending on their age, is that very few PPO plans have maternity coverage.
Comment by Cecil — June 9, 2009 @ 11:48 am