You've been working for your employer for a while and you find out they offer group benefit plans for health coverage, but you already have a private health insurance policy that you don't mind. If you are like most employees in this situation, you will stick with what you are already familiar with without giving enough thought to how a group plan could help you out. The truth of the matter is, a group health insurance plan definitely has its advantages over a private insurance policy. Here is a closer look at some of the pros and cons of a group health plan before you pass and stick with what health insurance you already have.
Pro: Group health plans can be less expensive than private insurance
One of the greatest advantages of a group health plan is you can usually get cheaper premiums. The reason behind this is the fact that people as a group are assessed as less risky than individuals. In any given group, there are bound to be about as many healthy people as there are who have major health issues, so policy premiums tend to be cheaper. If you have a certain health issue that drives up your private policy, group insurance can definitely be a cost-effective change.
Con: Group health plans may not give you the same coverage options.
Group health plans are designed more with a one-size-fits-all idea, or in other words, the policy is created to have options that work for most people. This means you may not have the ability to pick and choose between different coverage options like you do with your private plan. For example, if you pay extra for orthodontic coverage, you may not have the option to do so with a group plan.
Pro: Group health plans may have lower deductibles than your private plan.
Because your employer likely covers part of the premiums, and because a group is less risky to cover than a single person, a lot of group health plans can have lower deductible amounts to pick from. It is not uncommon for private insurance companies to have to ask for higher deductibles with individual policies just to ensure they don't end up paying out more for your care than what your deductible is from year to year. In a group where a lot of people will barely use their coverage, this will not matter as much.
To learn more, contact a company like NFP, P & C, Inc.