Nevada Health Insurance Protection for The Self-Employed or Small Employers

Chapter 4: Your Protections as a Small Employer or Self-Employed Person

Federal law extends certain protections to employers seeking to buy health insurance for themselves and their workers. Nevada has enacted reforms to expand some of these protections. Generally, small employers are those that employ 2-50 employees. Please note, however, that the definitions of small employer and employee are somewhat different under federal and state law. Check with the Nevada Division of Insurance to be sure that you know which protections apply to your group.

Do Insurance Companies Have To Sell Me Health Insurance?

• With few exceptions, small employers cannot be turned down. This is called guaranteed issue. If you employ at least 2 but not more than 50 people eligible for health benefits, health insurance companies must sell you any small group health plan they sell to other small employers. However, they can require that a minimum percentage of your eligible workers participate in your group health plan. They can also require you to contribute a minimum percentage of your workers' premiums. If you are buying a large group health plan for 51 or more eligible employees, your group can be turned down.
• Your insurance cannot be canceled because someone in your group becomes seriously ill. This is called guaranteed renewability and it applies to group plans of all sizes. Insurers can impose other conditions, however. They can require you to meet minimum participation and contribution rates in order to renew your coverage. Additionally, they can refuse to renew your coverage for nonpayment of premiums or if you commit fraud, or if they are discontinuing that insurance product. In the latter case, they must give you a chance to buy other plans they sell to employers.