Group Health Insurance

What Does Group Health Insurance Mean?

Group health insurance is a type of health coverage provided to a group of people, rather than to an individual. It is commonly offered by companies or other organizations as part of a benefits package. These benefits packages are designed to serve as incentives for employees to work for the company or organization.

Insuranceopedia Explains Group Health Insurance

Group health insurance plans are often less expensive than individual policies because companies can negotiate lower premiums by purchasing coverage in bulk. Most employers also pay a portion of those premiums, which is part of why an employee’s share is so much smaller than what someone pays buying coverage on their own, or what former employees pay for the same plan under COBRA after they leave the job. Additionally, the risk is distributed across the entire group rather than being concentrated on a single individual. These policies typically provide uniform coverage and benefits to all members of the group. Whether or not a company offers group health insurance can be a significant factor for prospective employees when considering employment opportunities.