If you’re in need of health care coverage, you may be questioning the difference between individual and group health plans. While there are some key differences, both are acceptable options for maintaining quality health insurance. We’ll help you understand the differences between group and individual health insurance plans.
What Is Individual Health Insurance?
Individual health insurance is sometimes referred to as self-insured coverage. These policies are available for individual purchases and can also be purchased for family members. Access to individual health plans cannot be denied based on preexisting medical conditions and those that do enroll in a plan are eligible to benefit from tax credits that lower the cost of coverage.
The availability of individual health insurance policies is bolstered by the introduction of the Affordable Care Act, which exists to help low-income families access vital health care resources. This set of laws expanded the individual health plan marketplace and created exchanges wherein people could more easily seek affordable coverage.
What Is Group Health Insurance?
This form of coverage is sometimes referred to as employer-sponsored coverage. This type of insurance policy is purchased and managed by an employer and employees of the policy holding company can choose to enroll in the plan if they are eligible. They can also enroll their dependents if necessary.
Group health plans have limited flexibility, as the employer chooses the plan and many of its elements, leaving the employee with minimal options for customization. This is often no issue for most employees, as they still have the ability to choose shop individual health plans if necessary. With group insurance plans, costs are typically shared between the employer and employee, with a minimum amount that must be contributed by employees for services received.
Comparing Group And Individual Insurance
Some people prefer individual health insurance because they do not want their health care coverage to solely depend on their employment status. For instance, if someone chooses to change jobs, an individual health plan would allow them to do so easily without any worry of their coverage being lapsed. Tax-deductible premiums also make individual health plans a potentially more affordable option, with cost-saving incentives abundant for these plans. The costs of individual plans may even rival or beat those of group health plans, with individual plan costs gradually lowering over time.
We’ll Help You Find Affordable Health Insurance
If you don’t have access to employer-based coverage, it’s time you got an individual health plan. Our team of expert insurance agents can help you find the coverage you need. Contact Trusted Senior Specialists now to schedule a consultation.