Fully-Insured group medical insurance refers to the conventional route of insuring employees, where a company pays a monthly premium to the insurance carrier. The insurance carrier then handles medical claims based on coverage benefits that have already been chosen by the employer.

The monthly premium the company pays to the insurance carrier is a fixed monthly rate. This rate will be revisited annually and/or if there is a change in the enrollment. The employer chooses how much to require their employees to pay of the monthly premium. Each carrier may have a minimum contribution requirement they must satisfy in order to enroll.