Group Membership Associations
Group Member Association Insurance is an important option for those Americans purchasing their own health insurance. Group Member Association Insurance provides members the buying power and administrative savings of employer based group coverage, while also offering the flexibility and portability of individual coverage. Plans are tailored insurance policies to the needs of small businesses, farmers, and self-employed Americans, all of which are the back bone of our rural communities.
Associations are issued a master policy with each participating member being issued an individual certificate. In most states individuals are required to be a member of the association in order to be a certificate holder. A few states treat association group insurance as guarantee issue, but most allow it to be underwritten.
Group Member Association Insurance is not a new concept. Purchasing health insurance through reputable and established associations has served the needs of millions of Americans for several decades. We believe that as health insurance costs continue to skyrocket, leaving more and more individuals without coverage every day, now is not the time to limit the options of consumers, but rather to offer consumers as many options as possible, which will increase competition and lower premiums for everyone.
Group Member Association Insurance has the ability to provide flexibility and buying power to individuals purchasing their own insurance.
Group Member Association Insurance that associations offer their members is regulated by the states and is from a fully licensed insurance company. The National Association of Insurance Commissioners requires that associations offering group insurance:
• “Shall have at the outset a minimum of 100 persons and have been organized and maintained in good faith for purposes other than that of obtaining health insurance.”
• “Shall have been in active existence for at least one year.”
• “And shall have a constitution and by-laws that provide that (i) the association hold regular meetings…(ii)…collect dues or solicit contributions from members, and (iii) the members have voting privileges and representation on the governing board and committees.”