Group Health Insurance

A group health care plan is a policy that allows multiple people to enroll in benefits. A uniform set of benefits will be provided to all participants.

Group health plans are most commonly offered by employers as part of their benefits packages. This allows qualifying employees (and often their dependents) to enroll in the plan, which they can use individually. The employer supports the plan, but the employee’s health care needs remain private.

Group health plan options are numerous, and most plans must meet standards set by both federal and state law. Plan structures include:

• HMOs
• PPOs
• Point-of-Service (POS) Plans
• Fee-for-Service Plans
• Health Savings Accounts (HSAs)

Other, more specialized plans include:

• Dental Coverage
• Vision Coverage
• Long-Term Care Insurance
• Supplemental Insurance
• Disability Insurance
• Prescription Drug Insurance

Sometimes, a single plan will include both medical coverage and other benefits like dental or vision coverage. In other cases, employers will offer several different group plan options that you can pick and choose from to put together the most comprehensive coverage for you.

Most group health plans are available to all eligible employees, and the enrollment process is usually simple. Employers might set different rules on when employees can enroll in or change plans. Most group plans have a single open enrollment period each year for returning participants. New employees often become eligible for benefits shortly after they join the company.

Group health plans are usually much more affordable than a stand-alone policy that you buy for yourself. In group plans, both risks and cost burdens are spread across plan participants so that you don’t have to bear your cost-risk burden yourself.

Most employers will cover a portion of the plan’s premium and divide the rest among employees. You can usually sign up to have these payments deducted from your paycheck so that you never have to pay them separately.