All about the right kind of health insurance
Falling sick never feels great and we know how treatments can erase all your savings in no time if something serious happens. However, though getting quality health insurance quotes too has become an expensive proposition given the rising cost of healthcare, group health plans can still be your alternative.
Apart from the cost factor, group health plans may score over individual plans on several other aspects as well.
• Cheaper than individual plans: Group health plans are cheaper than individual health plans as the cost of coverage gets distributed evenly amongst the group. Group health plans are ideal for people who have health conditions or habits which would make individual health policies expensive for them. He can join a group health plan at reasonable rate.
• Guaranteed issuance: Another benefit of group health insurance is, that in contrast to individual health policies one can’t be denied of group health coverage based on his health condition. The individual insurance carrier can deny you coverage or charge very high premium if you have existing health condition.
• Qualifying with pre-existing condition: When pre-existing conditions are often excluded in individual plans, you would qualify for group health coverage even if you have pre-existing conditions. The additional cost of including one with health issues would be distributed amongst the group.
• COBRA: The COBRA benefit would allow you to continue with your group health coverage for 18 months till you find another health carrier when you have been laid off or switching career. COBRA continuation would not only help you in qualifying for new coverage easily but would also keep you covered during the transit period.
• Employer’s contribution: Employers may bear a potion or the entire premium of group health policy. If you’re enjoying such employer’s participation, you are likely to save a great deal on your group health insurance premium.
• Adding dependants and spouse: You may also add your spouse and dependent children to your group policy. You would still enjoy cheaper rate on a group plan if they don’t have any pre-existing condition. Individual plans would require you to add other members of your family through expensive riders.
If you are healthy, group health plan, however, may cost you more than individual health insurance as you have to bear the cost of insuring not-so-healthy group members as well. Other disadvantages of group plans are; limited benefits and limited options to shop around.