We all know that selecting the right health insurance plan is important. But with so many options available, how do you choose? Many different employers and groups provide their employees and members with group medical coverage. But what if you’re unemployed or prefer to purchase your own health insurance? When deciding between group and individual health insurance coverage, it’s helpful to know the specifics of each. Take a look.
What is group health insurance coverage?
Group coverage is a single health coverage policy which is issued to a specific business, organization, or group. All eligible employees and oftentimes their dependents are covered by the policy. Under the Affordable Care Act, large companies are required to offer coverage and are penalized if they fail to do so. Small companies with fewer than 50 full-time employees may choose whether they will offer coverage.
What is individual health insurance coverage?
Individual coverage is health insurance that you purchase on your own, not through an employer or organization. A medical history and exam is usually required before acceptance. There are a wide variety of individual health plans available which may be tailored to meet individual needs. Individual health insurance coverage can be good option for those who are self-employed, in between jobs longer than three months, unable to get affordable coverage through an employer, not covered under a parent’s health care plan, or who are age 65 or older.
How does group coverage differ from individual coverage?
The rules for group health coverage differ from those for individual coverage. Why? Well, the level of risk which is assumed by the insurer is calculated differently for a group than it is for an individual. With individual coverage, the insurer determines its premium rates according to the medical history and lifestyle of the person or individual family. With group health coverage, insurers obviously cannot base their premium prices on the medical history of any one individual. Rather, the insurer takes a broad look at all members of the group. The insurer must consider a wide variety of statistics for the entire population of the group, including age and gender.
At Insurance Hub, we believe everyone should be able to understand and afford quality health insurance coverage. Our team of agents and knowledgeable advisors are ready to assist with all your health insurance needs. At Insurance Hub, our clients always come first. For more information regarding group vs individual health insurance coverage, visit Insurance Hub’s website today at www.insurancehubusa.com.