{"id":6606,"date":"2019-04-04T05:29:14","date_gmt":"2019-04-04T09:29:14","guid":{"rendered":"https:\/\/peakinsuranceadvisors.com\/?p=6606"},"modified":"2019-05-01T02:09:18","modified_gmt":"2019-05-01T06:09:18","slug":"what-are-the-advantages-of-group-health-insurance","status":"publish","type":"post","link":"https:\/\/peakinsuranceadvisors.com\/what-are-the-advantages-of-group-health-insurance\/","title":{"rendered":"What are the advantages of Group Health Insurance?"},"content":{"rendered":"
In order to list the advantages of group health insurance, we must first distinguish the types of health insurance that are available. Health Insurance can be purchased as either an individual, or as a group. Let\u2019s discuss these two options.<\/p>\n
Individual health insurance plans are available in every state via the affordable care act. These plans are usually available thru either an individual state\u2019s health insurance exchange, or more likely thru healthcare.gov.\u00a0 In addition, those who are aged 65 and over or have been enrolled in Social Security Disability are eligible for individual health insurance thru Medicare Supplements<\/a> or Medicare Advantage plans. Since individuals decide on their own which plan(s) to choose, they are called the individual marketplace.<\/p>\n Group Health Insurance plans are written for the employees of a company. The company sponsors a group health insurance plan for their employees and may also contribute towards the cost.\u00a0 There is usually a minimum level of participation and hours worked to qualify for coverage. Since the small business or group must decide to offer this type of plan, it is called group health insurance.<\/p>\n Now that we know the differences between individual and group health insurance plans, what are the advantages of a group health insurance plan? Why would someone want a group health insurance plan and not an individual one?<\/p>\n There are four (4) main benefits to a group health plan vs individual health plan: Lower Premiums, larger networks, more plan options, and tax deductibility<\/strong>.<\/p>\n on average than individual market plans. A small business is made up of many individuals and dependents being offered health insurance, and the small business market is made up of hundreds of thousands of small businesses. Therefor the risk for this pool of businesses is reduced because the pool is made up of a huge group of members. According to the Small Business Administration, the spread of risk across a group is a fundamental theory of insurance. High costs of one insured person have a smaller effect in a larger pool\u2014in other words, more people are paying to support the few who use the benefits of being covered to their full extent.<\/p>\nGroup Health Insurance plans offer lower premiums<\/strong><\/h5>\n
Group Health Insurance offers larger <\/strong>networks<\/strong><\/a> than the individual marketplace<\/strong><\/h5>\n