Understanding Group Health Coverage

If you’re an employer or employee, you may have some questions about group health coverage. While it’s important to talk to your insurance provider about specifics, here is some general information about group health insurance plans.

What Group Health Insurance Is

A group health insurance plan is intended to cover a group of people, usually at a reduced cost. Group insurance can’t be purchased by individuals, though those who purchase the plans may require participating individuals to pay a percentage of their own monthly insurance costs. Group health insurance policies are purchased by organizations and companies, then offered to employees or members for free or for a reduced price. iSure insurance brokers report that individuals can greatly benefit from a group health insurance policy. Studies reveal that employees will often accept a lower salary if they are offered health coverage under a group plan. That’s how much individuals value the free or discounted insurance coverage they receive with a group plan.

Benefits of Group Health Insurance

Group health coverage has a variety of benefits. Some of them include lower premiums since the risk is spread across a pool of individuals and greater control over costs. Though most group health insurance plans are purchased by employers, they can also be purchased by organizations or associations.