 Group
Health Insurance
Benefits of Group Insurance
Group health insurance is an insurance policy that covers
a group of people -the benefit of which is typically lower
premiums per individual. Even though group policies are
most commonly used in a business, it can also be used
for other types of groups. Some examples of these groups
are:
- Trade associations
- Religious Groups or Church
- Special Interest Groups
To find out if your group qualifies for group coverage,
check with your state insurance commission office or local
insurance provider.
One of the benefits that come with a group health insurance
policy is the reduced cost to group members. Because there
are multiple group members paying a premium on the same
policy, the insurance company can afford to charge each
individual less.
If a company has a group policy, chances are they will
pay for some or all of the premiums for their employees.
If you are a part of a company that offers group health
insurance coverage, contact the human resource department
for more information.
The other benefit of a group health insurance policy
is the regulation that most group insurance policies are
subject to. Because the insurance company agrees to cover
all members of the group, there are no health requirements.
Other regulations also prohibit an insurance company from
charging one individual in the group more than another.
If you are a small business and are currently paying
for your individual health insurance, you should consider
a group policy because it can save you money in the long
run.
HMO VS PPO
There are several differences between HMO and PPO insurance
programs. The way the programs are structured is one of
these differences. HMO insurance programs are run by private
insurance companies that have a group of doctors in their
network.
PPO insurance programs on the other hand are usually
a group of doctors and hospitals under an umbrella that
work together to offer its members discounted medical
treatment. Another major difference between these two
programs is the cost of protection.
Generally speaking, HMO insurance programs are less expensive
than PPO programs. The primary reason is because HMO insurance
programs have fixed costs for most procedures, in comparison
to the percentage structure of most PPO programs.
There are however certain instances, where if not used
correctly, an HMO plan can become very costly. It very
important that you become familiar with the rules of your
HMO. Another difference that factors into your choice
of protection is the method in which payments are made
for your medical care.
HMO insurance programs usually require a co-payment for
general preventative care and doctor visits. These services
usually cost anywhere from $0-$25 in most cases. Many
PPO insurance programs offer this to its participants
but many require full payment of services up front.
If payments are made up front the PPO member is reimbursed
the pre-determined percentage of the charges incurred.
So in general a PPO member needs to fanancially capable
of paying for their services up front.
Health
Insurance type requirements
HMO
Requirements
PPO
Requirements
Read our review on Lowering your
Group Health Insurance
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