This can be a confusing issue for many plan members and clients.
It is a necessary measure 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 anti-selection,
in simple terms, it avoids the situation where most unhealthy
employees choose coverage, while the healthy employees would
rather not have it. If only the people who needed the benefits
were able to enroll, the rates would be completely unaffordable.
These guidelines allow the insurance companies to spread the
risk and offer coverage to smaller businesses. When new employees
join your company it should be conveyed as a condition of
employment from the beginning. For further information, please
do not hesitate to contact us.