April 1, 2008 HB 2002 effective:
Oregon small groups now include groups of 2 to 50 employees. The number of allowed rating criteria for use in calculating your rates has increased significantly. Which factors an insurance company uses in their rate calculations can have a correspondingly significant impact on your premiums. This will affect existing group premiums on the group's next renewal. The following factors can now affect your rates:

• Employee Age
• Dependent Ages
• Dependent and Employee Tobacco Use
• Geographic Location of the Business and/or the Employee's Residence
• Plan Benefit Design
• How Long You Have Been with the Insurance Company
• How Much the Employer Contributes to the Cost of Coverage
• How Many of the Company's Employees are Enrolled in the Plan
• Medical Claims Experience (+ or - 5%)
• Participation in a Wellness Program

You are not required to offer health insurance to employees of your small business (2-50 employees). If you do offer health insurance, there are some very specific state and federal rules and regulations that you have to pay attention to. We have summarized the important ones on the web pages in this small business section.

The rules tell you what insurance plans have been approved by the state for group health insurance use. You are only allowed to use plans approved by the Oregon Insurance Division.

The rules also tell you how to determine who is an eligible employee for insurance purposes. You are given flexibility in determining the number of hours worked per week for an employee to be considered full time and eligible for health insurance. You are also given flexibility in determining a probationary period of up to 90 days for newly hired employees.

The rules also specify the minimum contribution you have to make toward an employee's health insurance premium, which is 50% of the employee only rate.You can choose to pay more and even cover all or part of the coverage for an employee's dependents if you wish. You also must meet labor laws that specify equal treatment for all similar employees.

Plan availability varies by the county and, in some cases, the zip code of where your business is located. Some areas of the state are limited to as few as three good options while other areas provide 10 or more choices. We offer coverage from 9 different insurance companies in Portland, for example. Premiums are driven by the cost of medical care in a given geographical area; therefore your rates will also likely vary depending on where your business is located.

If you do not find the information you need here, please use the "Have You Help Us" choice at the top of this page to let us know.