The pros and cons of group health insurance

On the market of health insurance is of course difficult, but count Your lucky stars that at least you can have the elections. To this end, this article will explore the pros and cons of health insurance group.

Group health insurance specialists

Group health premiums are subsidised by the employer. In General, the employer must contribute at least 50% of the premium "only employee". As such, if an employee is likely to be you get richer health plan premium for less than would be paid on the market of individual health. However, the cost to add the user according to the plan of the employer, may be cost prohibitive measures. In this case, and assuming that Your dependent can qualify then you may want to place them on the health plan.
Group health premiums for large families are the same as for small families; Therefore, in the individual market, you pay a separate for each Member of the family. So if you have a large family, you can get a better deal by adding them to your employer's plan. As in the case of any changes to the insurance but did not make any changes without consulting Advisor insurance experienced in your state.
Group health insurance in most States is guaranteed issue -which means that it cannot be in the bottom of the disabled due to existing health conditions. This is a true blessing if you or a family member has a medical condition that prevents you from qualifying for the individual plan. However, this is a double-edged Sword. While is guaranteed issue is of great benefit for those with existing medical conditions, come at a price. This feature alone is one most of the differences between group and individual insurance premiums. Yes, that is right-in most countries, the contributions of individual health is almost always less expensive than group health premiums.
Most group plans include maternity benefits. So if you plan on having more children, strongly consider hopping into the plan of the group. During "maternity" rider ", you can add to individual plans, these Men seem to be expensive, restrictive, and otherwise provide less value than range can be obtained in the group health plan. That in view of the above, if you are considering having more children, we recommend that you contact an adviser in Your State health insurance tips about what is best for the family. The answer is different for each unique family.
Economies of scale, you can take advantage of employees of large employers. It is true that a larger group, the greater the risk pool in which the risk-sharing is likely to result in lower premiums are not available on the market of individual health. However, guaranteed issue "problem" can wreak havoc on this type of plan. For example, large employer with good benefits usually retain workers for long periods of time. Finally, the average age of the group begins to creep up, and so do premiums. In addition, people with large medical needs (expensive medical conditions) tend to be attracted to large plans because they are guaranteed to be a problem with good cover. And so, at the time, not only increases the average age of the group, but the group is also attracting workers from large health expected costs. This is the dilemma that we see with large health as U.S. auto makers and even Government plans. Finally, these medical must start from a lot with little or not outnumber the needs and contributions are driven higher and higher.

Group insurance health Cons

Group health insurance may be more expensive than individual health insurance. ln fact, if you are not a factor in the employer's contribution towards the premiums, then the individual plans are almost always more affordable than plans for the group. However, as we discussed earlier, not each one can be eligible for the plan.
What happens if your employment is terminated (by the user or his employer)? Yes, you will probably have some rights, continuation of benefits (through COBRA or State continuation programs), but these benefits can be very costly and limited period of time. So eventually, or you have to secure another job with benefits, health plan (assuming that you're insurance arising), or possibly join the Government health insurance program for uninsured (if you're not insured arising). Let me stress that should never be without some form of major medical health insurance. Without this insurance puts you and your family be seriously threatened. In fact, a recent Harvard University found that 50 percent of all bankruptcy filings were partly the result of medical expenses to the same point every 30 seconds in the United States, someone files bankruptcy in the wake of a serious health problem. Don't let this happen to you.
Group health insurance premiums are rising faster than individual health insurance premiums. Why Is That? Because most of the plans of the group are guaranteed issue and because they accept "the Knights", they attract those with high medical costs. On the other hand, the majority of individual health insurance plans are medical insurance. This means that the insurance company, you can say "no thanks" to any application which it considers not in its interest. Put yourself in their shoes-signed to a contract for the provision of 30 000 USD in annual benefits to a person, not only to pay $ 3,000 in contributions (with a net loss of $ 27,000) If you don't have to? Hmm ...Let me me think about that one. The answer is a resounding "no!". Because of this insurance process for individual health insurance insurance companies to control their risks and more efficient management of their profitability, resulting in more stable prices.

As you can see, there is no response when the type of insurance is the best. The answer depends on many factors and is different for each unique situation. The best advice I give you and consider options for health insurance--Get good advice from an experienced health insurance.

Tim Hebert is managing partner of the Sage benefits advisers ( http://sageba.com ), the health insurance agencies specializing in each Colorado health insurance, group health insurance and employee benefits, and HSA plans paired with health savings accounts. Tim serving health insurance needs of businesses, families and persons in Colorado for more than 10 years.