Low Cost Small Group Health Insurance from Anthem Blue Cross of California

In December 2004 Blue Cross of California introduced a new line of low cost group health insurance in California for small companies. (A small company, as defined by California State Law (AB 1672 - California Insurance Code Section 10702-10718.7) has employed 2 - 50 people for 50 percent of the preceding quarter or 50 percent of the calendar year.)

Blue Cross of CA calls this assortment of low cost medical insurance plans "BeneFits" - they spell the word in this way as an example of how different these plans are. Some of the differences include:

• Low monthly cost - as little as $58 per month for an employee living in Los Angeles;
• Reduced Employer Contribution - employers must pay as little as 25 percent of the employee only premium or $50 per month vs. 50 percent for most medical insurance plans;
• Reduced Employee Participation - only 60 percent of the eligible employees must enroll in the plan vs. 75 percent for most health insurance plans.

Blue Cross BeneFits include three hospital only plans with additional enhancements and two comprehensive medical insurance plans which cover in and out of the hospital.

One unique feature of the Hospital BeneFits Preferred Plan is that it covers:

• In hospital costs after a $750 per year deductible;
• 50 percent of the cost of doctor's office visits and related services out of the hospital up to a maximum of $750 per year;
• Generic prescription medicine for $15 per medicine;
• Dental services including 2 cleanings and up to $500 for dental services;
• Vision services up to $100.

So, for about $50 per month an employer can offer his employees medical, dental and vision insurance. This is a fantastic opportunity for many companies that employ low wage workers who have always wanted to offer benefits but could not afford them. BeneFits may be the answer.

If you are interested in seeing if this type of plan will work for your company, contact me, Bruce Jugan, at 800-746-0045.

This is a summary of the plan benefits. Refer to the Evidence of Coverage and the Summary of Benefits from Anthem Blue Cross of California for detailed benefit information.

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