Group Health Insurance
Group health insurance is a type of insurance for employees and members of some company or organization. It provides coverage to its members at a lower cost. Only groups can buy this type of coverage, so you cannot purchase it as an individual.
What is group health insurance?
If you are employed you may get group health insurance. Businesses and organizations buy health insurance plans for their employees or members. It is usually a type of insurance for small businesses (from 2 to 50 people). This insurance provides a lower cost than individual insurance because the risks are divided among the group itself. Just like individual plans, group plans are also divided by plan type or by metal level. The good thing about group health insurance is that if your employer chooses it then it’s available for everyone. This means that you will be insured regardless of any health issues you might be having.
Types of Group Health Insurance
- HMOs: with this plan, every insurer must choose their primary care doctor and they must visit doctors within the HMOs network. Visiting out-of-network doctors may result in no coverage at all. Also, your PCP must get you a referral for specialists.
- PPOs: with this plan, there is no need for primary care doctor, so you can choose any doctor you want. However, it is recommended to see a doctor within the PPOs network because if you go to an out-of-network doctor you’ll have higher costs
- EPOs: you don’t need PCP with this plan, but you’ll maybe don’t get coverage if you visit an out-of-network doctor
- POS: this type is usually a combination of HMO and PPO plans and in this category are also plans that may be used with Health Savings Accounts
- Bronze: those are paying the least amount of health expenses, just 60%. But they have more affordable premiums
- Silver: those are covering 70% of the average costs of the policyholders and have less expensive premiums
- Gold: their coverage is 80% with higher copays and premiums
- Platinum: those have the highest level of coverage, 90%. They have higher monthly premiums but lower out-of-pocket costs