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Medical Insurance
Covers the costs associated with preventative care, doctor’s office visits, prescription drugs and hospitalization.  In recent years, medical insurance has become a political football because of the spiraling costs and the perception by many that it should be a birth right.  We don’t debate the issue here.  We simply educate the Business owner’s so that they can understand the coverage and the cost associated.  For a small business owner, the cost of medical insurance will generally surpass all other costs other than payroll.  Small groups in the state of New Jersey are defined as two to fifty “eligible” employees.  If the group has more than fifty eligible employees, it is considered a large group and there are different rules that apply.  At the present time, there are only a handful of carriers that write small group insurance in the state of New Jersey.  Quite often, we will encounter a business owner who is convinced that his / her broker got them a better deal than that available to other businesses.  The reality is that this is absolute nonsense.  Small group medical insurance is heavily regulated and structured by both the Dept. of Insurance and the insurance carriers.  It is essentially a commoditized product.  Any broker who quotes a group accurately and honestly will get the same price as any other broker, irrespective of whether you have a huge block of business or only one group.  The carriers may only consider age, gender, family status and geographic location when pricing the group.  The broker’s value to the group lies in their service.  A good broker will remarket the group as quickly as is reasonably possible at renewal time.  Also, the broker is often able to facilitate service between the group and the carrier.  Over time, a broker can suggest “cost saving” strategies to the employer based on their knowledge of the composition of the group.  Another misconception is that having a broker increases the cost of medical insurance to the employer.  This is not the case.  The price is exactly the same whether you have a broker or not.  Therefore, every small business employer with a medical plan should have a broker.