Group health insurance is health insurance that is offered to a group of people as opposed to just to one person. Group health insurance is commonly offered by companies or by other organizations as a part of a benefit package. Benefits packages are used as incentive for employees to work at the company or organization.
Group health insurance plans often cost less then the collective individual policies would. The reason is because companies often get lower premiums since they are buying in bulk. Also, the risk is spread out through the whole group as opposed to being on just one person. Group health insurance policies typically offer uniform coverage and benefits to all of the members of the group. Whether or not a company offers group health insurance can be an important variable for prospective employees.
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