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

Difference between Health Insurance and Individual Health Insurance are as follows :

1. Individual Health Insurance is a type of health policy which an individual procures for himself while group insurance is a type of health policy which an employer procures for his employees and dependance of employees.

2.Group health insurance is tax deductible while individual health insurance are tax deductible only when if a health reimburstment plan is set up by the employer.

3.Job protection is limited in group insurance while job is highly secured in individual health insurance.

4.Protection in changing jobs is limited in group health insurance while there is high protection of changing jobs in individual health insurance.

5.There is more control over co-pays,deductibles,and benefits limits in Individual Health Insurance while there is less control over co-pays,deductibles,and benefits limits in Group Health Insurance.

6.Individual Helath insurance by purchased by employee while Group health insurance is purchased by employer.

There are also similarity among the two types of plan as they both coverage of pre existing conditions and employees.They both includes with options of availing services of medical providers.

Most people have the insurance in form of group insurance and most of the elderly american are secured through group insurance.