Group and Individual Health Insurance
With the drastic increase in health care costs, not having health insurance seems to be a non-option. In the past, there was a large dependence on receiving health insurance through your employer. The employer would take care of most of the process. They would do the research, choose the insurance companies, and all the health plan options. A lot of changes began to occur within the health care sphere. Some of those changes were companies cutting health benefits due to the economy. There were also employees being required to take more of the financial burden with the rising health care costs, and technological advances meant higher costs for services.
Those changes began the push for more people opting to purchase individual health plans, also known as personal health insurance. Unlike employer-sponsored plans, you can choose the health insurance that will best serve your needs.
Some people choose to stick with their group health insurance, and some choose to shop for their own plan. Regardless of the choice, everyone should have a basic understanding of the differences between each. We will look at both of the options.
Group Health Insurance
Group health insurance, as mentioned earlier, is handled entirely by the employer. They are responsible for choosing which plans are made available and which insurance provider will be used. The largest benefit that accompanies a group health insurance plan is that your employer takes care of a portion of the premium. This type of health insurance also removes the stress that accompanies trying to search for the perfect plan when you do not know much about health insurance. Also, the premium payments are deducted from pre-tax pay, which lowers your taxable income.
Individual Health Insurance
On the other hand, individual health insurance allows you to have complete control over your family’s health insurance needs. Purchasing a plan can happen in one of two ways. The first way is through the Marketplace, which is handled by the government. Dependent on your household size and income, you may be eligible to receive a cut on the cost. You may also purchase a private plan that goes directly through the provider, or agents, brokers, and online. An individual plan is not connected to a job, so there is no concern for the loss of coverage when you change or lose jobs. Its other benefits include getting to choose a plan that includes doctors and hospitals you trust, and you may be able to qualify for more affordable coverage.
As far as pricing goes, in 2020, the average cost of a group health insurance plan was $7,470 a year and an individual health insurance plan was approximately $5,472 a year. Bear in mind that individual health plans are seen to be trending down in terms of cost, and group plans are seeing a rise.
Having health insurance is the ultimate goal, therefore it does not make much of a difference if you receive it from your workplace or you find your own plan. You would just need to consider your particular circumstances and choose what best fits your needs.
Life Insurance Questions?
We hope this information on group and individual health insurance is helpful.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage to speak to one of our Life and Annuity experts (888) 539-1633
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