Group Health Insurance Pros And Cons
Posted on 04. Nov, 2009 by Dan Panera in Medical Insurance
The most common way to qualify for group health insurance is though an employer. While group health insurance offers several benefits, it may not be the best choice for you.
Anyone who is a member of the group must be allowed to have the same health coverage as all other members of the group. If your plan has an open enrollment period, you can join or add family members. Even if you or a family member has had cancer or is a diabetic, you can join the group health policy, although there may be limits to coverage for pre-existing conditions for the first year.
Once you reach age forty to forty-five, you will find that cost for group insurance is less that you would pay for an individual plan. In this age bracket, you will find that insurance costs about the same for individual policies as for group health insurance. As you age, individual policies get more expensive.
You will also find that individual policies have some disadvantages also.
With many plans, you do not have the chance to customize your coverage. It the plan administrator chooses to go with a new plan, you are stuck with the new plan, whether it is beneficial to you are not. In this time of budget cuts, many individuals are finding that their employers are going with cheaper insurance and the employee is paying more from his own pocket.
A second disadvantage for group health insurance is that if you are young, you are probably paying more for group health insurance than you would pay for an individual plan. With a group plan, everyone pays the same price regardless of age, so group health coverage could cost you as much as two hundred dollars over the cost of an individual plan each month.
If you employer offers you group health insurance it is possible the company is paying part or all of your insurance. This is often a considerable benefit for working fro a company.
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