When dealing with small business group health insurance there are a few questions that often are on the minds of small business owners everywhere. Maybe this will help you find some answers to questions you had.

First of all, most small business owners want to know if it is required by law for them to have this type of insurance. Simply put, the answer is no. While the government or state may regulate health plans, there is not a law requiring businesses to provide health care for their employees.

Secondly they worry about finding insurance because they are self employed. It's a little known fact that you can get group rates for being a business owner. You can be placed in a "group of one", thus only having to insure yourself but getting the more affordable option of group rates. Groups are defined as two or more in some states however, so be sure to check with your rep about the specifics of your state.

Most employers also worry about the calculation of the premium. Depending on the rules of your state there are three methods by which an insurance company will determine your rates. Medical underwriting, which is used mainly in the health insurance market, can determine the rate by the medical history of people in your group. Adjusted or modified community rating applies factors such as age, lifestyle, and gender percentages to come up with a premium. The third way to determine these rates is with rating bands. This is when the insurer sets a base rate that will be charged to the group under certain case characteristics. The health and conditions of these employees will have a great impact on the insurance offered under this rating system.

Another common question from employers is how do they know what diseases or injuries are covered. This will be covered by the state you live in, so be sure to look over your coverage and be sure to add anything you may want covered that is missing.

What percentage of the policy should I pay as a small business owner? Typically the employer normally covers about 87 percent of the policy for individuals and about 66 percent for family coverage.

Many businesses who seek small business group health insurance also want to know how long they have to wait before putting a new person on their coverage. It all depends on the employer. Some companies will provide coverage after 30 days while others may not provide it for six months. Larger companies normally have a 90 day waiting period before you can apply for coverage.

HMO, PPO, or POS? This is a puzzling situation for many business owners. That's because there really is no easy answer. Each has it pros and cons, but the most compelling factor here is the financial situation of the company. It is typical of small companies to only be able to afford one plan, so discussing what is right for you with your agent is highly advised.