The Differences Between Group and Individual Health Insurance
Health insurance is so important, especially with rising health care costs. An extended hospital stay or procedure can set someone back financially a great amount.
In the past, most people were content with getting their health insurance from their workplace. It was easy, as the employer was responsible for doing research, choosing the provider, and the health plan options. There was then a series of changes that occurred within the field of health care. Companies had to cut the number of health benefits they offered because of the waning economy. Employees were being left with more of the financial burden due to rising health care costs. And technological advances were resulting in higher costs of services.
These changes began to prompt people to start purchasing individual health insurance. Unlike the group health plans, an individual health plan would allow you to make certain decisions that would best fit the needs of your family.
Even though group insurance may be an option, it always up to the individual. Understanding the difference between the two options may be necessary for making the correct choice.
Group Health Insurance
Group health insurance, as noted above, is handled entirely by the employer. Decisions about carriers and plans are made by the workplace. There are a few benefits to employer-sponsored insurance. The first being that the employer takes care of a portion of the monthly premiums. It also removes the stress of trying to find a plan when you are not knowledgeable about health insurance. And, finally, the premium payments are deducted from pre-tax pay, which means your taxable income is lowered.
Individual Health Insurance
Individual health insurance, on the other hand, gives you complete control over your family’s health insurance needs. There are two ways that you may purchase your health insurance plan. The first is through the Marketplace that is operated by the government. This option provides an opportunity to receive a cut of the cost. However, that is only dependent on your household size and income. The other way is to purchase a private plan directly from the provider, or through agents, brokers, and online. There is no fear of coverage loss when you change or lose your job because the health insurance is not tied to a job. You may also choose a plan that accepts the doctors and hospitals you trust, and you can possibly qualify for more affordable coverage.
In terms of cost, 2020 saw that the average cost of a group health insurance plan for a single person was $7,470 a year, while an individual health insurance plan was $5,472 a year. It is important to note that individual health plan costs are seeing a downward trend in costs and group plans are rising.
There are benefits to both group and individual health insurance, and having coverage is the ultimate goal. So, whether you continue with an employer-sponsored health plan or shop for your own, make sure that is the perfect choice for your circumstances.
Got Medicare Questions?
We hope this information on the difference between group and individual health insurance is helpful to you.
If you have questions about your Medicare coverage, call Empower Brokerage today. Let us help with your Medicare questions so you can get back to the activities you enjoy the most. (888) 446-9157 or click here to get an INSTANT QUOTE
See our other websites: