Employer Health Plan offerings

[Guest PamM]

Can an employer offer a health plan to existing employees but as of 1-1-03 not offer to new hires? The employer is located in CA

[KIP KRAUS]

It makes sense to me provided the insurer goes along with it and it's not contrary to ste insurance law.

[mroberts]

I would think you are going to have a problem with this. Carriers present their rates based on certain underwriting standards such as a participation requirement. If your group falls below this participation requirement, the carrier would most likely have to re-rate your case.

Another reason I can see the carrier not going for this is because it could bring up adverse selection, i.e. you don't want to pay for health coverage any more because your company can't afford it, however, you know of a couple very sick employees currently being covered and want to make sure benefits are still in place for them.