Health insurance provided to employees by an employer or an association to its members is referred to as group coverage.
Health insurance you buy on your own, not through an employer or an association is called individual coverage.
Those are the basics of the difference between group and individual health coverage. But what does it mean for you if you're changing from group health insurance to individual? What will be different for you?
Group vs. individual coverage
If for some reason you can't get coverage through your employer anymore, you will still need a health plan. For most people, that means buying individual health insurance.
Unlike traditional employer-sponsored insurance, now you'll:
- Shop for and choose a plan that covers the needs of you and your family
- Purchase your plan
- Make all of the monthly premium payments
- Get to know and manage all of your health coverage and benefits
If you've had employer-sponsored coverage, you're probably used to certain things. Your employer may:
- Give you a choice of health insurance plans
- Pay for all or some of your monthly premium
- Deduct your share of your premium from your paycheck each pay period
- Provide your plan documents
- Answer questions about your health plan
You will probably notice differences in what benefits are covered by group versus individual plans, also. That changes on January 1, 2014. After that, all health plans for individuals and businesses with fewer than 50 full-time employees will cover the same 10 essential health benefits. But if your employer has 50 or more full-time employees, they have more say in what your plan will and will not cover.
For more information feel to contact a PMG Agent over at https://pmgagency.com/contact-us!