Group Health Insurance Plans

By: EconomyWatch Content   Date: 15 February 2010

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Group health insurance plans, or the health insurance cover provided by employers are the most cost-effective insurance plans to consider. As the risk is divided in the group, insurers provide these plans at very economical rates and offer wider coverage. Though adding your family members to these plans might turn out to be a little expensive, there are, nevertheless, other ways to decrease expenses.

One can consider individual insurance plans for the family members and continue with the group health insurance plan.

Advantages of Group Health Insurance Plans

Such plans have many innate advantages, such as:

·        Low premiums

·        Larger coverage

·        Better customer service as insurers fear losing the entire group due to bad service

·        People get insurance cover even with pre-existing conditions. There are no medical tests done.

·        The ‘cost to company’ includes the premium amounts

As organizations are a constant source of business for insurers, the rate of approval for reimbursements is very high and the ‘corporate instinct’ of denying reimbursement decrease to the ‘fairest minimum’. Only the most genuine of cases are declined, as insurers fear losing the entire group.

Rates for Group Health Insurance Plans

Any organization with two or more employees can apply for group insurance. The eligibility requirements vary from state to state, and companies are required to verify the legitimacy of their operations. The rates are decided as per the geography, and quotes are made available free of cost on many online platforms.

The number of employees also decides the rate that an insurance company charges. Typically, based on the number of employees, companies are categorized into three classes:

·        Small group: 2-50 employees

·        Mid-size group: 51-150 employees 

·        Large group: more than 151 employees

Advantage with group health insurance plans for large groups is the flexibility of coverage that the insurers offer. One can even get regular visits and preventive visits covered. Some large companies also offer insurance on their own risk through bonds and stock options.

However, do not let group health insurance plans to influence your job decision. Many organizations offer group insurance plans to hold back employees through the lure of coverage, which ceases to exist once employees change their job. As an antidote for such things, stay updated with COBRA as well.


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