There are key differences between individual and group insurance plans. Individual health insurance plans were designed to provide insurance to unemployed or self-employed persons not covered under their employer's plan. In some cases, individual insurance can be difficult to obtain at any price. People with pre-existing, previously diagnosed, or treated health problems seeking new health insurance policies are considered high-risk by insurance companies, and may be unable to find affordable health insurance or any health insurance at all. On the other hand, group insurance plans, which provide coverage for two or more individuals, cannot single out high-risk individuals; nor can they deny them health coverage. All individuals are covered regardless of their existing health problems, and high-risk individuals are factored into the total cost of the group plan. The plan descriptions that follow outline the types of individual and group insurance plans widely available today.
A first step is to decide if you will take out an individual or a group health policy. Group insurance is only an option for you, if you are a member of a group that offers a group health policy. Common groups that offer insurance are employers, unions, and trade associations. The most common form of group insurance in the US is insurance offered by an employer. Employers frequently offer insurance because the employer gains tax benefits from offering subsidized care and increases the overall health of the employees. Even if you have the possibility to get group insurance, you want to consider whether it is a better choice for you than a health insurance policy you can purchase as an individual. If you are not a member of an eligible group, your only choice is to seek individual insurance. Individual or family insurance is insurance that you purchase independently and are personally responsible