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The Difference Between Individual and Group Health Insurance

One of the most expensive parts of adulthood and being an American is trying to get affordable health coverage. You know, the kind that actually covers what you need, when you need it. If that sounds like a myth, you’re in the same boat as thousands who struggle to find the best health insurance.

Stop trying to worry about it on your own. It can be easily handled, especially if you have some options to consider. The biggest part of deciding which path of coverage to pursue is decide if you want to enroll in a group coverage plan, such as through an employer, or seek out individual coverage for yourself and your family.

Looking at the Basics

Health insurance in Denver is very important, but not all companies offer it to their employees. In fact, most places to work won’t come with a full health insurance plan at all, which means that many Denver locals have to pursue individual insurance. That is the biggest difference between group and individual health insurance.

Both aren’t always available to everyone. For a business to offer health coverage to its employees, they need to meet some pretty steep requirements. One of these being the need for over 50 employees, which almost immediately counts out any small business.

Before you decide not to apply for a smaller company, consider the benefits of individual health insurance. It can be more expensive at times, but it’s often much more customizable and fitting for the specific needs you have. Group insurance is chosen on what is best for the company, but not the individual. You trade cheaper costs for less quality of treatment at times.

Digging Deeper Into The Differences

When it comes to noticeable differences between group and individual health insurance, aside from availability, you’re looking at 3 major points to consider. If you’re one of the lucky ones with accessibility to both, this is an important thing to review as you navigate the health coverage world.

1. Eligibility

With a company provided health plan, everyone who meets the requirements set by the business (such as years with the company or hourly minimum) will be accepted onto the provided health coverage if they choose to do so, despite pre-existing conditions. Some individual health insurance companies will reject applicants if they have expensive or potentially problematic health conditions already.

2. Cost

Obviously, one of the big turning points between either type of health coverage is the cost of each. Some plans on group health insurance can be as little as a few dollars per paycheck, while individual full coverage plans can be up in the hundreds a month, especially if offered for you and your family. Individual health insurance tends to be more expensive than a group plan.

3. Benefits

With group health insurance, you may get basic benefits like copays and the like, but it’s the individual plans that really provide what you need. With deductibles, copay on medicine, free doctor checks annually, maternity coverage, and more, you can really customize your plan and choose exactly what you want and pay for that only. Individual insurance coverage is the best for highly selective people with lots of needs.

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