As an employer, one of the most impactful benefits you can offer your employees is health insurance. While it can be a significant investment, it is essential to protect your staff's wellness, improve retention and productivity, and comply with state and federal requirements. To provide competitive health insurance quotes, health insurance companies often require Individual Medical Questionnaires (IMQs) in addition to standard group information. In this blog post, we will explore why health insurance underwriters ask for IMQs, what information they typically contain, and how to ensure your IMQs are completed correctly.
What is an Individual Medical Questionnaire?
IMQs are forms that ask employees about their medical history, lifestyle choices, family health history, and current medications. Health insurance underwriters use this information to determine the overall health status of your employees and the risk they pose for future claims. Knowing your employee's health status can help you design a customized plan that meets their needs and decreases the likelihood of future claims.
Why do underwriters need these to give me rates?
IMQs are used to help insurers assess the risk of providing coverage and adjust it according to your group's overall health. Based on the data collected, they adjust their premiums and rules accordingly. For example, if a group has a higher risk of developing chronic diseases, such as heart disease or diabetes, their premiums may be higher.
Can IMQs keep me from overpaying for insurance?
The short answer is, yes. Underwriters use IMQs to ensure the accuracy of their underwriting process. IMQs help to confirm the information obtained from various sources such as medical records and prescription histories. Inaccurate information may cause the underwriters to miscalculate risks and premiums leading to incorrect coverage costs. For instance, if an employee had a pre-existing condition that was not disclosed, it may result in increased risk and premiums. Accurate and timely IMQ submissions can ensure that risks are accurately calculated, and premiums are accurately priced.
Can IMQs help you design a better health plan?
Absolutely. Based on the IMQ results, you can offer specific plan benefits tailored to your group. For example, if your employees have a higher incidence of back pain, you may add coverage for chiropractic care or acupuncture to your plan. Or, if they have a high rate of smoking, you may offer programs to help your employees quit smoking or increase premiums for smokers. Understanding your employees' needs can help you offer them the best coverage options that meet their health and financial needs.
What if I think it is too invasive to ask these questions to my employees?
Look, we totally get it, IMQs contain sensitive and confidential medical information, and it is essential to protect them. This is why at BeneSmart we use an electronic process to collect this information through a HIPAA compliant platform. The Health Insurance Portability and Accountability Act (HIPAA) protects medical data from wrongful disclosure and breach of confidentiality. To ensure privacy and security, IMQs are kept in an encrypted and secure location, and all underwriters adhere to these privacy regulations as well.
What if my employee thinks it is too invasive?
Try framing it like this with your employees. Imagine you were going to go shopping for car insurance and you had a perfect driving record, yet the car insurer did not even check your record. They just looked at your age, where you live and the type of car you drive and they gave you an offer for car insurance that costs twice as much as what you pay now. You can't get an accurate rate on your car insurance without sharing your driving record, health insurance works the same way.
Now I know what you are thinking....what if my employee has serious health issues and does not want to be singled out or charged more than his or her peers for coverage because of these health issues. This is where the overall health of the group as a whole comes in to save the day. If you have a healthier than average group, chances are, you are overpaying. This is when you let your employee know that completing the IMQ will only give an overall risk assessment on the group and will not single anyone out.
Conclusion:
Health insurance is an essential benefit that a company can offer its employees, and IMQs are an essential tool used by underwriters to help determine the cost and risks of a plan. As an employer, you should ensure that your employees know the importance of submitting accurate information on their IMQs. By doing so, you can protect your employees' confidentiality, ensure accurate risk assessment, and design customized plans that meet their health and financial needs.
