Group health insurance is a type of health insurance plan in which a single policy is purchased by an employer or an organization to provide healthcare coverage to a group of individuals. It is typically offered as a benefit to employees or members of the group.
Under this arrangement, the cost of the insurance premium is shared between the employer or organization and the individuals covered. Premiums are often lower compared to individual health insurance plans because the risk is spread across a larger group, resulting in a more cost-effective option for all involved parties.
Group health insurance plans typically offer a variety of coverage options, including doctor visits, hospital stays, prescription medications, preventive care, and other medical services, depending on the specific plan. The coverage can extend to the family members of employees or members as well, providing healthcare support for dependents.
These plans usually have certain eligibility requirements, such as minimum participation thresholds or predetermined waiting periods before coverage starts. They are often subject to annual renewals, with the option for individuals to add or remove coverage during designated enrollment periods.
Group health insurance provides several advantages compared to individual health insurance, including potentially lower costs, broader coverage options, and the ability to pool risk among the group members. It offers financial and healthcare security for employees or members and their families, promoting overall well-being and productivity within the organization.
