Group health insurance is exactly what it says it is, a insurance policy covering a group of people. Usually a business opens a group plan to offer coverage to its employees, however, group health insurance is not always limited to companies and many different groups can obtain group health insurance. Many times, trade associations, church/religious, special interest groups, clubs/organizations and chambers of commerce groups create health care plans for their participating members.
The advantage of having a group health insurance plan definitely exceed the disadvantages:
- After the initial set-up cost, group plans are generally cheaper because the insurance companies profit from having more people on their plans, even at a lower cost to the participants.
- Many employers cover part or all of the insurance premiums.
- Because an insurance company agrees to insure all employees/participants under a group policy, there are no physical exams or health history questionnaires to complete.
A limiting of choices is the major drawback to group health policies. New enrollees to an already established group plan have no voice as to what type of policy, (HMO or PPO) would serve their purpose, or what amount of premium, deductible and maximum lifetime coverage would fit the participant’s budget.
Most Americans participate in a group health insurance policy, through their work or other organization. Of course, before enrolling with any insurance group, be sure to research the policy to determine if it is right for you and your family. If you are a small business or looking for group health insurance quote, you may want to try some instant online quotes from QOOQe.com