There are many different types of health insurance available, but there is one major difference between individual and group coverage. With individual health insurance, you typically pay the entire cost of your medical care out-of-pocket until you reach your deductible. With group coverage, employers provide some or all of your premiums for the year in addition to providing benefits that cover a portion of your medical expenses after you meet specific deductibles. 

The choice between these two options can be challenging to make, so it’s essential to consider what might work best for you and your family when deciding which type of plan is right for you!

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What Is Individual Health Insurance?

Individual plans can be purchased through a healthcare exchange or off-exchange from an insurer directly. They must meet certain minimum levels of benefits in order not to deny coverage due to pre-existing conditions. People without employer-sponsored health insurance often purchase individual coverage on their own, although the repeal of the ACA’s individual mandate has removed the financial penalty.

What Is Group Health Insurance?

Group Insurance Health Plans provide coverage to a group of members, usually composed of company employees or members in an organization. Group health insurance plans typically cover members’ families and/or other dependents in addition to themselves at an extra cost. The plans have the potential for reduced prices because the insurers’ risk is spread across many policyholders. Individual premiums can be kept low as well due to representing such a large share when it comes down to them paying out benefits from any one claim. 

Currently, 49.6% of the U.S. population is covered by group health insurance.

Comparing Individual Vs. Group Health Insurance

When it comes to health insurance, individuals and groups are both important. Although comparing group vs. individual health insurance can be difficult, doing so is necessary to determine which plan is truly the best for you.

The Choices Available

Group plans: Obviously, the first significant difference is that the employer chooses the health insurance plan you will have. Some employers will offer you 2-3 options to choose from. 

Individual plans: Employees can purchase from a government-run or private exchange to find coverage that best fits them. There are many options available for each employee, sometimes in the hundreds! 

The Coverage

Group plans: If you lose or change your job, you will lose access to your group plan. You may also be paying for coverage you do not need. 

Individual plans: As these plans are separate from your employment, you can keep your coverage for as long as you want! 

The Plan Customization

Group plans: Group plans are chosen by companies to accommodate the needs of everyone being covered at that workplace, so they typically offer as many providers and locations.

Individual plans: Each employee is given the opportunity to shop for a plan that best suits their needs. With the options in the individual market, families determine the specific coverage that fits their situation best.

The Cost

Group plans: The cost of group plans is typically affordable, but some employees often find themselves fronting the bill for extra coverage they don’t need. On the other hand, while most employers do their best to find affordable, comprehensive coverage, they cannot accommodate every employee’s unique needs. 

Individual plans: The individual market is an excellent place for employees to shop for affordable health insurance. They can find lower prices and more options than comparable group plans. It allows individuals to choose how much coverage they want, which in turn determines what they pay.  

Which Should You Choose?

Group health insurance plans can be an attractive aspect of a job as the insurer takes on less risk because more people are on a plan, so premiums stay low as they’re spread across everyone covered by it! But, at the end of the day, it comes down to you and your loved one’s specific needs. It’s important for you to speak with a licensed insurance professional who can walk you through what coverage gaps you may have in your group plan before registering. 

Speak to a
Licensed Agent
1 (844) 612-0518
OR
Get Your FREE
Health Insurance Quote