Whether you’re about to get a new job and are being offered a group health insurance policy, or you’re just looking for a Mediclaim policy, it is important to know the benefits and costs of both. Every year, the health insurance landscape is changing and evolving. So, before you sign anything, take a look at these Pros and Cons to see whether Group Health Insurance is right for you or if you should be looking for a different kind of insurance online.
Pros of Group Health Insurance
Group Health Insurance Through an Employer
Group health insurance provided through an employer gets subsidized by that employer. Normally, you can expect an employer to cover roughly up to half of what your insurance premium(s) would be, leaving the rest to then be paid for from your paycheck. But in the long run, this can result in better health plans at less cost for you.
Looking for a Family Plan?
Whether you have a small family or a large family, you can often find a Group plan that keeps the costs relatively the same regardless of family size. This can either be through your employer’s plan or through a family plan that you find yourself online.
Group Plans that are made for families can often include maternity coverage, which is essential if you’re in the process of raising a family instead of already having a family in place.
Lower premiums if You Manage or Work for a Large Business
The larger the business, the lower your possible premiums could be when you join a Group Health plan.
Most Group Health Insurance Plans are Guaranteed Issue
This means that even if you have pre-existing conditions, you’ll still be issued coverage. This can be highly valuable, especially if you have a family and one of them has a condition that might otherwise render individual health plans unqualifiable.
Cons of Group Health Insurance
It Gets Higher with Age
Whether it’s a family plan that you’ve purchased, or an employer plan, you might notice your premiums going up as you and others in the plan get older. That’s because the older you get, the higher the chance there will be an ailment or injury, and at a higher rate.
Group Health Insurance Is Continually Rising in Cost
It is rising faster than Individual Plans due to the fact that Group plans often accept all, regardless of medical conditions. Because of this, a lot of Group Health Insurance Providers see people buying into these plans who have high-cost medical conditions. For the insurance company, this can put a strain on their finances, and so they’ve bumped up the prices more and more to compensate.
If It’s Employer Provided… What Happens When You Leave?
For plans that are provided by the employer, you might have some options to prolong your coverage, such as COBRA. However, these are incredibly costly, and it may put you at a great financial disadvantage. It is highly recommended that you try seeking another health plan as soon as possible.
There’s Little Choice in Group Health Plans
If you’re getting Group Health from an employer, you’ll notice how little control you’ll have over your actual plan. You might find yourself with a very high deductible, maybe your copay is higher than when you have individual health insurance, or your out-of-pocket-expenses have skyrocketed.
It ultimately comes down to what your situation is. Do you have a large family that requires health insurance? Is it just you and a spouse? Does anyone have high-costing medical conditions that would benefit from a Group Plan? These are all factors that will really help in deciding whether Group Health Insurance is right for you and your loved ones.