Health Insurance Classes of Employees

For Group Health Insurance, Employees can be "classed" for several purposes.  Most Insurance Companies allow 2 classes, and many allow 3 classes.  The most common classes are:

Class I - Owners, Officers, Managers
Class II - All other Employees

Often, there is a difference in the Waiting Period for Newly Hired Employees, and in the Employer Contribution to the premium, depending upon these classes.  For instance, an Employer may choose that Class I Employees have a 30 day Waiting Period, and receive 99% Employer Contribution toward their premium, whereas Class II Employees have a 90 day waiting period, and receive 75% Employer Contribution.  Sometimes an Employer also wishes to "carve-out" coverage for a Class of Employees.

Last updated 2/2/2007