Group Health Insurance FAQ

Health insurance can be a major financial expense facing families in the U.S. The costs are often particularly high for individual plans, and you can help alleviate the expense of health insurance by enrolling in a group health plan. If you are shopping for a group health plan for your employees, or you are deciding whether or not to enroll in a group health plan yourself, you probably have some questions about group health insurance.

What is Group Health Insurance?

• Group health insurance is a type of policy that allows individuals and their families to purchase health insurance through an independent group such as an employer, union or other professional organization. According to healthinsurance.org, group health insurance is often more affordable and offers greater flexibility for approval. With individual health plans, you may have to undergo a medical examination, and you could be denied coverage. Group health insurance allows the insurer to utilize the law of large numbers, which means the policyholders in good health help balance the risk of those in poor health.

How Do I Enroll?

• Contact your benefits administrator to find out how to enroll, and check if there is a waiting period or other requirement you must meet before enrolling in your organization's group health plan. Insure.com reports that many group health plans institute an enrollment waiting period anywhere from 30 days to six months. To enroll in group health insurance, you will be required to fill out an enrollment form with your basic information such as your name, address and date of birth, and you may be asked whether you have any medical conditions or current prescriptions. This information typically must be provided for every family member you wish to enroll.

What's Covered?

• Every health insurance plan varies regarding what type of procedures and medical care are covered under the policy. Most group health insurance plans offer two or more plan options that provide varying levels of coverage to meet your needs. Generally, you can expect to receive coverage for doctors' visits, prescription drugs, emergency room visits and required surgery. You should refer to your policy to determine exactly what is covered. Some plans only cover doctors and hospitals with prior approval, or they may only cover a specific amount.

Can My Coverage Change?

• According to the Missouri Department of Insurance, Financial Institutions and Professional Registration, your employer or other professional organization has the right to change insurance providers. Your coverage levels and plan options may also be subject to change.

What About Preexisting Conditions?

• A preexisting condition is a medical condition that exists before you enroll in a health plan. Many insurance providers accept applications even with a preexisting condition for group plans. Some insurance companies will impose a mandatory waiting period before your health policy becomes active and covers any treatment you seek for your condition.