Many companies today are cutting back on employee benefits, and many individuals are affected by that decision—they often end up paying for their own health care or looking to another organization or group coverage. They often must compare group health insurance and individual insurance, and the choice can be dizzying. Here is a brief comparison so you understand the differences before you evaluate your options.
Individual Health Insurance
Although individual coverage can mean more expensive premiums, it can also mean better health care choices. Because companies are cutting back on benefits you may have to have individual insurance. If not, and you can afford the individual insurance, there may be reasons to sign up for it.
Advantages: With individual coverage, you would have continuous coverage no matter where work or live. Also, you get to make choices in mental health coverage, as well as vision and dental. If you are a healthy patient, long term health care and life policies may be cheaper than with group health insurance provided by en employer. You can also choose a plan that allows you to keep your current doctor, and have other choices in your coverage that you would not have with a group health insurance plan.
Disadvantages: Sometimes with private insurance coverage your plan selections are very limited. You will also have to fill out detailed health questionnaire and get a thorough health examination; if you don't pass this exam to the company's preferences, they will turn you down or offer you a limited plan. They can also deny you coverage for pre-existing conditions. Individual plans can also be more expensive because you have to pay the premium.
Group Health Insurance
Often this insurance is provided by your employer and is usually the best way to get group health insurance. You don't have to compare the dizzying number of plans and research companies. Often it's just a matter of picking out your coverage from a menu of choices after you have decided how much you can contribute to the plan. These plans sometimes include disability insurance in various forms, life insurance, and basic health with (sometimes without) major medical.
Advantages: The premiums, often picked up in part or in whole by employers, are usually less expensive. Most employees are not required to get a physical exam or answer a ton of questions. Also, group health insurance plans usually cover pre-existing conditions after a certain waiting time.
Disadvantages: Some employer plans have low payouts and low cap limits. You may also not have a choice of the type of plan, like HOM, PPO, fee-for-service, etc. This means you may have to change doctors if you change employers or your company changes insurance.
