Florida Health Insurers Challenge State Rule To Create Uniform Small Business Insurance Applications

Two UnitedHealth Group subsidiaries are challenging a proposed rule by the Florida Office of Insurance Regulation that would require state insurers to use the same application forms and medical questionnaires for all small businesses with between two and 50 employees, Florida Health News reports.

The rule aims to close the health insurance price gap between companies with a certain number of employees -- often 10 -- that can submit group applications and companies with fewer employees that are required to submit individuals' medical histories. Companies that submit group applications tend to receive a lower price in the first year, followed by a "steep increase" the next year, while companies with fewer employees can get charged up to 15% more than the rates the carriers have filed with the state, according to Florida Health News.

The two UnitedHealth Group subsidiaries, UnitedHealthcare of Florida and United HealthCare Insurance, have said that the office lacks the authority to require the change. The Division of Administrative Hearings will hear arguments in the case on Aug. 22 (Gentry, Florida Health News, 8/13).