Know which medical insurance plan is best for you. Find the difference between Group Health Insurance and Individual Health Insurance.

1. Deciding on what’s best for you: Is it
Group Health Insurance? Or Individual
Health Insurance?
Contents:
What is the difference between Group Health Insurance and Individual Health Insurance?
· Individual Health Insurance
· Group Health Insurance
What are the advantages and disadvantages of Group Health Insurance and
Individual Health Insurance?
· Group Health Insurance: Advantages
· Group Health Insurance: Disadvantages
· Individual Health Insurance: Advantages
· Individual Health Insurance: Disadvantages

2. What is the difference between Individual Health
Insurance and Group Health Insurance?
Individual Health Insurance is a kind of health policy that someone purchases
independently and has its own pros and cons. It is a kind of coverage that is sold to a single
individual, to dependent children and parents, or to a family. Each state in the U.S.A have
independent regulations on how an Individual Health Insurance should be sold and how it
should be acquired by you, therefore it is important that you know very well what these are,
before you purchase one for yourself or your family.
A Group Health Insurance on the other hand, is a kind of health policy that majority
of Americans acquire through an employer and is shared amongst employees of the company
where they work. It may be acquired through a government program or any other
organizations too. A Group Health Insurance is less costly than an Individual Health Insurance.
One of the reasons for this is that, insurance companies profit more when there are more
members in their plans. They give discounts to a group.
What are the Advantages and Disadvantages of Group
Health Insurance and Individual Health Insurance?
Each insurance plan has its own set of pros and cons and the ability to choose the best one for
yourself depend on the amount of knowledge you have of each plan and your financial
capability.
You might find out that some benefits considered as “Standard” in a Group Health Insurance
Policy may not always be included in the standard package of an Individual Health Insurance
Policy. An example would be, a “maternity coverage or “substance-abuse treatments”. In most
cases, these two are already included in the standard package of a Group Health Insurance
plan, but will require an extra payment if what you have is Individual Health Insurance plan.
These extra coverage which are not included in a standard package, are referred to as a
“riders”.

3. Group Health Insurance Advantages
· The more members there are in their plans, the more profit an insurance company gets, therefore they
give more discounts to plans that are given to a group
· Employers often cover almost all parts of the insurance premiums that you won’t need to pay extra fee
for riders. A maternity coverage is already included in a Group Insurance plan, so this is the surest way
for other employees to avail of it immediately.
· A Group Health Policy covers anybody who is employed with a company regardless of their health
conditions or age. Mostly, no physical exams or surveys are conducted, so if you have a pre-existing
health condition, you will find it easier to get approved and be able to avail of the health plan just like
your colleagues.
Group Health Insurance Disdvantages
· There can be a limitation of choice too with a Group Health Insurance Plan since it already is tailored
for the entire group. This means that whatever is included in a policy is pretty much how it remains for
everyone. This works the same for the span of its coverage. Group Health Insurance Plan can only work
for as long as you are employed.
· If you quit or lose your job, your Group Health Insurance coverage goes with it. Should you want to
keep the same policy, you will have to pay for the premiums on your own.
· You will only be allowed under certain federal law like COBRA to continue your Group Health Insurance
coverage for a period of time.
Individual Health Insurance Advantages
· You can choose a specific type of coverage that fits your needs and that of your family. It is true that
your monthly premium may not be as cheap as that of a Group Health Insurance plan, but if you have a
package that meets your needs, you will be able to save more on prescriptions and medical care over all.
· You can leave your job or quit anytime and spare yourself the risk of losing your health care plan. You
also don’t have to qualify for a new Group Health Insurance plan that’s supported by your new employer
in case you have found a new job.
· If you are healthy you may end up paying a cheaper insurance on your own since a Group Health
Insurance have averaged high-risk and low-risk members all together
Individual Health Insurance Disadvantage
· You can be turned down anytime due to your age and especially if you are not healthy. Insurance
companies do assess applicants individually, and if you don’t pass the standards for low-risk, a policy
for high-risk will be more expensive and there is a Group Health Policy that takes care of this anyway.