Group Health Insurance
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Group Health Insurance refers to a coverage structure made available to a group of people through employers, purchasing pools or associations. According to the record of United States Census Board, more than 60% of the American population is covered through such plans by employers. Let us look at some key features of group plans available in America. |
Company sponsored: Most big organizations in USA offer health insurance coverage to their employees. Typically the employers pay a substantial portion of the premiums (ranging from 75% to 85%) and the rest is paid by the employee. The main advantage of such group plans is that the premiums are more economical when compared to individual plans and the employees are also saved from the daunting process of selecting and buying health insurance coverage by themselves. Another advantage of these plans is that the employee usually gets tax rebate on the amount he pays out. The main disadvantage is limited to disruption in the group health insurance plans due to change of jobs and employers. It has also been argued that the individuals with higher income have an unfair advantage as they benefit more in form of tax rebates than the people with lower income. Most small companies in USA (3 – 199 workers) also offer similar group insurance to their employees. However, they have the disadvantage for not being able to provide the self funded health care (in which the company pays for disability or health benefits from its own funds rather than insurance providers) like big firms. These companies usually take assistance of brokers for selection of coverage, enrollment of employees in the coverage plans and resolution of settlements. Many schools, colleges and universities also offer group health insurance to their students. From 2010 onwards, most states in America allow children to remain under coverage of plans held by their parents. However, cases of under-coverage are covered through school sponsored plans.
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Group Health Insurance
