Small Employer Health Insurance Law and Legal Definition

Small Employer Health Insurance refers to insurance provided by the employers of small firms in the U.S. The coverages provided by small employers are equivalent to large firms. Employees are required to provide health information about themselves and their family members coming under the insurance coverage. Small employer health insurance is regulated under Small Employer Health Insurance Availability Act.

Small employer health insurance can include the following:

1. Health care

2.Health or disability benefits

The following is an example of a state statute (Nebraska) stating the purpose of small employer health insurance:

R.R.S. Neb. § 44-5224 states that the purposes of the Small Employer Health Insurance Availability Act are to promote the availability of health insurance coverage to small employers regardless of their health status or claims experience, to prevent abusive rating practices, to require disclosure of rating practices to purchasers, to establish rules regarding renewability of coverage, to establish limitations on the use of preexisting condition exclusions, to provide for development of basic and standard health benefit plans to be offered to all small employers, to provide for establishment of a reinsurance program, and to improve the overall fairness and efficiency of the small group health insurance .