Everyone needs health insurance, but it can be uncertain what type of policy you and your family need. There are two main choices when it comes to health insurance: group health insurance and individual health insurance.
Differences Between Group Health Insurance and Individual Health Insurance
There is little difference in the actual coverage offered by both of these types of health insurance policies. They can both cover emergency medical services, doctor visits, surgery, prescription medication and more.
The main differences are the policyholder and those covered. With an individual health insurance policy, you hold the policy directly with the insurance provider. In a group health insurance policy, the policy is generally held by an employer. A group health insurance policy spreads the risk between multiple employees. This can often lower premiums, but it can also have the opposite effect.
Which Health Insurance Policy is Best?
There is no definitive answer as to which one is better. Every individual and family is different, as are their income and health insurance needs. It’s important to consider the cost of both insurances and your health coverage needs before agreeing to sign a policy. Signing a health insurance policy with your employer’s group health insurance can be easier, but you may want an individual policy if you want coverage when switching between jobs or higher limits for certain expenses.
Is Group Health Insurance Lower than Individual?
On average, group health insurance is cheaper than individual health insurance. This depends on several factors, however, including your location, health, coverage limits and the number of employees sharing the group insurance policy.
The average cost for an individual under group health insurance is about $98.83 a month while the average cost for an individual under an individual health insurance policy is closer to $440 a month.
Additional Information to Know
If you’re considering group health insurance with your employer, be sure to review and ask about the coverage available. Many employer health insurance policies do not cover dental work and other common exclusions.
It’s also important to note that, under a certain amount of coverage, you may not be required to have a health exam. If you wish to have coverage above this set limit, you will likely need a health exam, which may affect your health insurance premiums. Consider the pros and cons of both types of policy before choosing.