The health insurance marketplace is certainly challenging but counts the lucky stars that a minimum of you’ve got choices. To that end, this text goes to explore the pros and cons of group health insurance.
The employer subsidizes group health premiums
Generally, an employer must contribute a minimum of 50% of the “employee only” premium. As such, if you are the employee, you can likely get a more luxurious health plan for less incentive than you would pay in the individual health marketplace. However, the cost to add your dependents to the employer’s plan may be cost-prohibitive. In this case, and assuming that your dependents can qualify, then you’ll want to place them on a private health plan.
Group health premiums for giant families are equivalent to for little families.
Whereas, within the individual market, you pay a separate premium for each loved one. So, if you have a large family, you may be able to get a better deal by adding them to your employer’s plan. As with any insurance change, though, don’t make any changes without consulting with an experienced insurance advisor in your state.
Group insurance in most states is a guaranteed issue.
It means that you cannot be turned down due to pre-existing health conditions. This is a real blessing if you or a family member has a medical condition that prevents you from qualifying for an individual plan. But, this is a double-edged sword. While being guaranteed issue is a massive benefit for those with pre-existing medical conditions, it does come at a price. This one feature alone accounts for many of the disparity between group and individual insurance premiums. Yes, that is right – in most states, different health premiums are almost always less expensive than group health premiums.
Group Health Insurance Cons
Group insurance is often costlier than individual insurance
If you don’t factor in the employer’s contribution towards premiums, then different plans are almost always more affordable than group plans. However, as we discussed earlier, not everyone can qualify for an individual project.
What happens if your employment is terminated (by you or your employer)?
Yes, you will likely have some benefit continuation rights (through COBRA or state continuation programs), but these benefits can be costly and the term-limited. So, eventually, you either need to secure another job with benefits, a private health plan (assuming you’re insurable), or possibly join a government insurance program for the uninsured (if you are not insurable). Let me emphasize that you should NEVER be without some form of primary medical health insurance. Being without this insurance puts you and your family in severe financial jeopardy. A recent Harvard University study found that fifty percent of all bankruptcy filings were partly the results of medical expenses. To an equivalent point, every 30 seconds within Canada, someone files for bankruptcy in the aftermath of a severe health problem. Don’t let this happen to you.
Chambers of commerce in Canada offering you the best group health insurance plan and will make you feel secure about it.