What's Better - Individual Or Group Health Plans?

By Author: Marcus Stalder
Total Articles: 491
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Looking for a good insurance plan for insuring one's health can be tedious and involves a lot of options to consider. Especially, when you aren't quite good at insurance and didn't get any plans on your own in the past. Insurance agents and brokers can use this confusion to their advantage and you can end up paying way more for insurance than you really should. And one of the most frequently asked questions concerning insurance plans is about choosing between group and individual health insurance.

Fact is that there's no definite answer to this question and it depends on the actual needs of a person asking it. We will try to outline the main advantages and disadvantages of each insurance plan type and deciding what to choose will rest on you. Remember that the situation is different in each case and what's beneficial for your neighbor or colleague can be quite uncomfortable for you personally.

Individual plans

Individual plans are quite common and represent a traditional form of health insurance. Individual or independent plans usually have a single policyholder and are tailored to his or her exact requirements. ...
... In most cases the customer can adjust coverage amounts and edit the list of services that should be covered by the policy. Due to this, individual plans have a very high degree of flexibility. The main downside here is the price. Individual plans usually cost more than group plans and are useful only if you have any specific health insurance needs. It's much easier to find an individual plan that will cover pre-existing conditions or specific healthcare services but you will have to pay for that.

Group plans

Group plans have become very popular among many workers and students who are often offered with such an option by their employers or education facilities. Under a group plan, the group of workers shares the same set of services that are covered and the employer usually pays a part of the premium, which makes group plans a very advantageous option in terms of price. On the other hand, group plans have a limited set of services that get covered. Most pre-existing conditions are denied with coverage and if you need any specific healthcare services you are very likely to pay out of own pocket for them.

Conclusion

Both individual and group plans have their strengths and weaknesses. In terms of price you will certainly gain more by choosing a group health insurance plan as compared to individual offers. However, if you have specific health conditions and need adequate coverage, group health insurance may be not enough to cover you properly, and it would be better to go with individual insurance. Analyze your needs, think how often you visit a doctor and make your decision basing on these facts. If you are healthy and don't go to a doctor quite often, an employer-sponsored group plan might work very well for you. But if you visit a doctor on a regular basis and need special medications and services that should be covered, you might want to choose an individual plan that will let you tailor the coverage according to your personal needs.