What Are the Benefits of Group Health Coverage Over Individual?

When you work for an employer full-time, one of the key benefits you may be able to receive is health insurance. Group health insurance plans are offered by many employers as a benefit to their employees and it can provide you with some advantages over an individual health plan.

Insurance Premiums

• One of the primary advantages of a group health insurance policy is that your premiums can be more affordable. With a group health insurance plan, the health insurance provider will give the group cheaper individual rates because of the large number of new customers in the plan. When you go out and get a plan as an individual, you will not get the preferred group rate and your monthly premiums could be higher.

Partial Payment

• In a typical group health insurance plan, your employer often pays part of your premium. Many employers pay for all or part of the employee's health insurance premiums as part of a benefits package. Some employers also pay for a portion of your family member's premiums as well. This can significantly lower your out-o- pocket costs for health insurance premiums.

Getting Coverage

• Being part of a group health insurance plan often means you do not have to go through any medical exams or surveys. When you get health insurance on your own, the insurance company will typically give you a health exam and make you answer a number of health-related questions. When you have a group policy, this is not usually an issue. Even if you have pre-existing conditions, the group health insurance coverage often will still cover you.

COBRA

• When you leave your job, you do not necessarily have to get individual health insurance immediately. Through the Consolidated Omnibus Budget Reconciliation Act (COBRA) program, you can get coverage from your group health insurance plan for up to 18 months after you are no longer an employee. This allows you to keep the same health insurance and pay for the premiums out of your own pocket instead of having them paid by your employer. If you are in the middle of a health issue, this can be a big savings.