Group Insurance premiums versus Individual Insurance premiums.
Affordable Florida Group Health Insurance 101
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?”
Well unlike most situations where sellers are more willing to offer discounts to buyers of multiple units, group health insurance is an exception.
Consider this 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.
Affordable Florida Group Health Insurance 101
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?”
Well unlike most situations where sellers are more willing to offer discounts to buyers of multiple units, group health insurance is an exception.
Consider this 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.
