Question

Compare and contrast group health insurance and individual health insurance. Provide examples to illustrate how these coverage plans are similar and how they are different.

Answer 1

Group health insurance are those type of insurance in which employer buys the insurance for all of its employees or cover many employees under a insurance plan.

Individual insurance health insurance plan is a type of insurance in which person buys insurance for himself or other members of his/her family.

differences which we can see in Insurance health plans is that Group health insurance plans can be customized like Employer can design what benefits should be provided or purchase a pre-planned health insurance from a insurance company while in individual, person has to purchase the plan offered by the insurance company.

The cost of Group health insurance plan is less as compared to Individual because under Group employer purchase insurance in Bulk so they get discounts while in Individual they has to pay the fix cost which could be higher.

In Group health insurance plan premium is deducted from salary while in individual person has to pay separately.

In Group health insurance, employee can get insurance easily. for example- Company has good reputation and good history so insurance company provide insurance to all employees but In individual health insurance person having bad financial or health history get difficulty to have insurance.

for example- a person has history that he suffering from big sickness already and has poor financial status so when insurance company do background check they do not give insurance to such which can not pay or cause loss to company.

the similarities in both is that under these plans, person is insured and able to pay future health expenses and get proper treatment. Both type of insurance provide security that their life and their familiy member's life are protected if any future health problem arises then employer or insurance company will come and pay for that.