Group health insurance is a type of health coverage that provides a master policy for a group of individuals to be covered under. Group health insurance is most commonly used by employers as a way to provide health coverage for all of their employees. The cost of premiums for a group health insurance policy will be lower as a result of the high volume of covered individuals under the master policy. This is the main reason that grouping the coverage is ideal.
Group Health Insurance for Employees
Group health insurance is mostly used by employers as a means to provide health insurance coverage for their employees. Basically, the employer will invest in the master policy that will provide coverage for their employees. The employees may be required to make small payments towards the policy out of their pay. Some employers will cover the costs of the group health insurance completely and use the coverage as an employee benefit. This is a great incentive for many businesses to be more appealing to potential employees.
Other Uses of Group Health Insurance
Group health insurance may be used by other types of groups besides typical businesses. Some not-for-profit businesses, churches, and unions have group health insurance coverage available for their members. Other types of groups of services may also have a group health insurance policy in place for their members. The dependents of an individual in the group health insurance member may also be covered under the policy. This is possible for employees with group coverage as well though.
What is covered with Group Health Insurance?
The covered expenses for group health insurance policyholders will vary depending on the specifics of the policy. However, most group health insurance policies will provide coverage for emergency expenses, routine visits to the doctor, and treatment for accidental injuries. Long term hospital care or rehabilitation treatment is also covered with many group health insurance policies. There are other health benefits on group health insurance policies as well but they will vary by policy. Some examples include coverage for vision, dental, and mental care expenses, as well as prescription drug costs.
Benefits of Group Health Insurance
The major benefit of group health insurance is the low cost of premiums that are experienced due to the higher volume of policyholders. This has its downfalls as the value of the coverage may be lower and there may be a need for additional coverage but this will vary by policy. However, for the very affordable cost, group health insurance provides a reliable health coverage that is great for group members and sometimes their dependents too. Also, group health insurance policies often do not require physical exams so the coverage may be helpful still for those with current medical conditions.
Downfalls of Group Health Insurance
The major downfall in group health insurance policies is that there is a risk of sudden premium increases. This can occur unexpectedly if large claims are made under the policy by one or more of the policyholders. If there are high expenses being covered by the policy then it could lead to higher premiums being paid by all members in the group. The other issue with group health insurance is that it does not always provide sufficient coverage. It is common for these policies to have limited coverage and a lower value of coverage as well. This is why many people get additional coverage but it is often not necessary.
How to Get Group Health Insurance
If you own a company then you may want to consider investing in a group health insurance policy. This can be done out of your own pocket, as a payroll deduction for employees, or a combination of both. If you are looking to invest in a policy then you should contact a health insurance provider for more information. Find a reputable insurer and inquire about the requirements, coverage, premium costs, and the terms and conditions of the group health insurance policy they are offering.
There are other resources available that will provide you with quotes (sometimes instant) for group health insurance policies. One other option would be to go through an insurance broker to get assistance in finding a good deal on a group health insurance policy.
Group health insurance is a very effective form of health coverage for employers to provide their employees. Even if as a payroll deduction, most employees will be pleased with this coverage as it is more affordable than a typical health insurance policy for a single policyholder. With that being said, it is highly suggested that any employer considers setting up a group health insurance policy for the benefit of them and the members of their group as well.