When small employers come together through a multiple-employee trust to purchase insurance, they have access to group underwriting treatment, products, and services that are significantly different to those available to large employers.
Health Insurance Portability and Accountability Act provides portability of coverage.Portability means carrying the actual coverage of the old employer to the new one, not carrying forward the qualification for preexisting conditions.
The Financial Accounting Standards Board (FASB 106) in 1993 phased in a requirement that employers recognize the pay-as-you-go system on the balance sheet during the employees' active working years rather than the present value of future retiree medical expense benefits.
Purchase of an administrative services only (ASO) contract and stop-loss insurance gives the employer the potential cash flow and expense advantage of self-funding, while reducing the employer's administrative burden and potential for catastrophic risk.
Under the Health Insurance Portability and Accountability Act, an employer can impose only up to twelve months preexisting conditions exclusions for regular enrollment and up to eighteen months for late enrollment.