group health insurance

Group Health Insurance

Group health insurance policies are "medically underwritten" to take into account your personal health history. Any "pre-existing" condition such as heart disease, diabetes, and even pregnancy, can nix your chances of acceptance or boost your premiums. Some states require individual health insurers to offer everyone a plan, a mandate known as "guaranteed issue." If you need to purchase group health insurance, it can be expensive. Unlike group plans, in which the costs and risks associated with health care are spread among many people.

Types of group health insurance

Usually when people refer to group health insurance, they mean the comprehensive health policies offered by their employer. There are two main kinds of group medical insurance:

• Fee-for-service
  


• Managed care plans

Both kinds of plans cover medical expenses, but you probably prefer one type over the other. There are many affordable health insurance plans that are fee-for-service. These plans are characterized by choice. You see the doctor you choose, and your health insurance provider reimburses you for a percentage of your medical expenses for covered benefits. Be aware that you will be reimbursed only for services covered in your group medical insurance plan, so choose your group health insurance benefits carefully.

Managed care is increasingly popular as low cost health insurance as it is regarded as a way to cut rising medical costs. HMOs (Health Maintenance Organizations) require members to seek medical treatment from health providers connected to the particular HMO. You choose a primary care doctor who then coordinates your treatment, including specialties. HMOs are meant to offer excellent, but less costly, health care. Both fee-for-service plans and HMOs offer coverage of medical, surgical, and hospital expenses, but their philosophies differ.

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