What is a requirement for an Association Group to purchase group insurance?

An Association Group seeking to purchase group insurance typically must demonstrate a sufficient degree of permanence and size to ensure risk pooling among its members. The requirement to have a minimum of 100 members and to exist for over 2 years is grounded in the idea that a larger, stable group provides a more predictable risk profile for insurers. This size helps ensure that the group can effectively share the costs associated with providing health insurance and can maintain enough membership continuity to assure insurance companies that premium payments will be stable over time.

Smaller or newer groups may not yet have established a reliable membership base, potentially leading to fluctuations in risk and cost that insurers might find unacceptable. Thus, this requirement serves both the interests of the group in obtaining insurance and the insurers’ need for stability and predictability in risk assessment. The focus is on creating a robust Association Group capable of navigating the insurance market effectively.