Health Insurance Articles
The Advantages And Disadvantages Of Group Health Insurance Coverage
2010-12-15
Group health insurance coverage is the most common form of insurance used in the US today. Most employers work with health insurance companies to offer some form of group coverage for their employees because it is a less expensive way to insure a wide range of people at once.
Lower Premiums for High Risk Individuals
The people who benefit most from group health insurance coverage are those who are in high risk health categories. Seniors with chronic illnesses, people who smoke and people who are overweight can pay far less for their health insurance if they are enrolled in a group policy. If the coverage is through an employer, the insurance company is required by law in most states to accept everyone who works for the employer. People who would have had a difficult time finding health insurance can qualify through their work with as little as a 6 month waiting period.
Paying More When You are Healthy
Unfortunately, younger adults who are healthy tend to pay more for group health insurance coverage. Health insurance companies create the premiums for the group based on the average expectation of claims that might be filed by everyone in the group. A healthy young adult will be far less likely to file a health claim than an older adult with a chronic illness. If there are far more older adults than younger adults on the policy, a younger adult will pay more for group coverage than he or she would pay for an individual policy.
Coverage Options
Group health insurance coverage can be a good way to afford a more flexible insurance plan. Individual plans get more expensive as you create more flexibility. If you want to use a certain doctor who is not in the insurance company's network, you will probably not be covered at all through an individual policy. With a group policy, the costs are spread over a number of people. It is easier to afford higher tiers of coverage that allow people to choose their doctors and visit specialists under the insurance policy.
Limited Insurance Selections
The biggest limitation of group health insurance coverage is that the average age and health of the group will play a large part in which companies they can purchase affordable health insurance from. Some health insurance companies may charge too much for a group policy that covers a group that is heavily weighted with older individuals or people who have suffered from severe health problems in the past. It can take some research to find the right group coverage plan through an affordable health insurance company. Individuals can find an insurance company faster than groups who have to deal with average demographics.
