Advantages and Disadvantages on Group Health Insurance VS Individual Health Insurance

Benefits and disadvantages of individual and group health insurance
The change from group to individual health insurance is a change many people who are currently faced. There may be some big differences between the two types of insurance and their costs. Be familiar with some of these basic differences will help you to know what to expect.

Group health insurance
Group health insurance purchased by your employer from a health insurance company. Anyone who is eligible can receive coverage under the plan. Group health insurance is less expensive than individual health insurance because you have the purchasing power of the group. The insurance company bases the premium on a calculation of how much insurance the group as a whole is used. If you buy individual health insurance however, the calculation of the premium is not based on a group, it is based on you alone. That is why insurance the health of the individual can be so expensive.

Individual health insurance

Individual health insurance is the health insurance that you buy from an insurance company on your own, and not by an employer. You can choose coverage either for yourself or yourself and your family, often individual policies provide less coverage than group policies. Under an individual plan, some services such as drug abuse treatment may not be covered.

Another important difference between group and individual health insurance is that with the collective insurance, the law on the insurance company requires everyone to cover that works for this employer. With individual health insurance companies, companies are not required to issue you a directive. This can be very alarming for people who have preexisting conditions. If you have recently lost your job, it may be surprising to find out that although you have been covered under a group plan, there is no guarantee that you will receive individual health insurance coverage.

In some states, the health insurance companies are allowed to issue policies for people with pre-existing conditions, but they are issued with a disability driver. This means that all services, for the already existing condition are not covered. Each state has its own laws to monitor how the individual health insurance funds is managed. Therefore, plans can be very much from state to state. The plans can also vary from one insurance company to another. Make sure to compare and compare deals and plans from different companies before making a decision.

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