Group Health Coverage
Do you think group medical insurance or individual medical insurance would be more expensive? If you said group medical insurance then you are on the right track to understanding the main difference between the two.
Some people are shocked to learn that the cost of group, or employer based health insurance, is almost twice as high as the cost of individual medical insurance. "How can that be?” they ask. Well unlike most situations where sellers are more willing to offer discounts to buyers of multiple units, group health insurance is an exception. Consider an example, let's say your employer just hired a new co-worker and the spouse has cancer. By law, the employer is forced to cover all the expenses associated with the spouse's medical condition...even though they never would be approved for an individual medical insurance policy. You as a healthy person are in a sense subsidizing the cost of your unhealthy co-worker (and all of the other unhealthy people) in paying their premiums, thus driving up the cost of everyone's health insurance premium.
What people overlook is insurers are required to accept sick people along with healthy people on group plans as opposed to an individual medical plans
Thus, it only makes sense that insurers are going to charge more for coverage where they can't screen out people with medical conditions they don't want. Individual health insurance does not work the same way, the insurer can be picky and applications are subject to full medical underwriting, hence the rates for individual health insurance are relatively cheap.
If at this point, your understanding of health insurance has been turned up-side down, RELAX! Shopping for health insurance does not have to be a long, drawn out and mind-numbing experience.
The key phrase is, "affordable and comprehensive" health insurance. Obviously other factors come in to play. Look for the plan that strikes the proper balance between affordability and protection as well.
Do you think group medical insurance or individual medical insurance would be more expensive? If you said group medical insurance then you are on the right track to understanding the main difference between the two.
Some people are shocked to learn that the cost of group, or employer based health insurance, is almost twice as high as the cost of individual medical insurance. "How can that be?” they ask. Well unlike most situations where sellers are more willing to offer discounts to buyers of multiple units, group health insurance is an exception. Consider an example, let's say your employer just hired a new co-worker and the spouse has cancer. By law, the employer is forced to cover all the expenses associated with the spouse's medical condition...even though they never would be approved for an individual medical insurance policy. You as a healthy person are in a sense subsidizing the cost of your unhealthy co-worker (and all of the other unhealthy people) in paying their premiums, thus driving up the cost of everyone's health insurance premium.
What people overlook is insurers are required to accept sick people along with healthy people on group plans as opposed to an individual medical plans
Thus, it only makes sense that insurers are going to charge more for coverage where they can't screen out people with medical conditions they don't want. Individual health insurance does not work the same way, the insurer can be picky and applications are subject to full medical underwriting, hence the rates for individual health insurance are relatively cheap.
If at this point, your understanding of health insurance has been turned up-side down, RELAX! Shopping for health insurance does not have to be a long, drawn out and mind-numbing experience.
The key phrase is, "affordable and comprehensive" health insurance. Obviously other factors come in to play. Look for the plan that strikes the proper balance between affordability and protection as well.
Call Diana at Albritton Insurance Services 1-863-385-2255 or toll free at 1-877-912-7006
or e-mail at albrittoninsurance@earthlink.net
for a Free Quote!
or e-mail at albrittoninsurance@earthlink.net
for a Free Quote!
Information Regarding: COBRA
If you have group health insurance through your employment and lose your job, you might be eligible for COBRA. This is a continuation of your group coverage. The difference is, the employer is not making any contributions toward the cost. Generally, you can continue this coverage for 18 months. At the end of the COBRA period, if you cannot obtain traditional health insurance, you may be eligible for a continuation plan to extend the benefits.
If you are currently enrolled in group health insurance through your employment and want to understand more of your terms and benefits concerning COBRA call the customer service number on your Medical I.D. Card.
If you are currently enrolled in group health insurance through your employment and want to understand more of your terms and benefits concerning COBRA call the customer service number on your Medical I.D. Card.
