Group Health Insurance Explained
Group health insurance is a health insurance plan that is bought by a company, large or small, in order to offer their employees affordable health insurance. The owner of the company then offers qualified employees a chance to join the group health insurance plan. All or part of the premium is paid by the employer. Employees generally have the option to add a spouse or child to the group health insurance plan. Employees typically have to fully cover the cost of adding a spouse or child themselves.
Most companies that offer group health insurance offer all employees the exact same affordable health insurance. Large companies may offer several different group health insurance plans, with varying levels of coverage and cost.
The reason why group health insurance is cheaper per person than individual insurance is that the insurance companies risk is spread out among many people. A few might get sick or require expensive hospital visits, but most will remain healthy.
While group medical insurance plans has been the only way many people can purchase affordable health insurance, premiums are rising. Employees are getting less coverage for more money. This is why so many people are clamoring for health care reform although most people do not agree on how health care reform can be accomplished. Most people do agree that few Americans have access to affordable health insurance.
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