A large percentage of Americans get medical insurance coverage as a part of their benefits package through an employer. While this small group health insurance coverage protects many of us, the numbers are decreasing and it is becoming more likely that an individual will purchase medical insurance coverage on their own. There are some distinct differences between a typical group health insurance policy you get from an employer and the individual medical plan you purchase on your own.

Smart Business published an article last month that discusses this switch and talks about some of the differences between the two types of health care coverage. If you are currently in the market for a personal medical insurance plan, than you should know what some of these differences are.

Group health plans that employers offer typically have more standard benefits than you will find in medical insurance plans for individuals. This means that benefits such as maternity coverage may not be offered standard under the personal medical insurance plan you are considering, but can be purchased for an additional premium.

Also, with an individual health insurance policy, you will have to fill out a health questionnaire for everyone who wishes to be covered under the plan. This questionnaire will dive deep into the applicant’s medical history, which is used to determine the insurability of the individual, as well as what rates will be charged for coverage.

An individual medical plan is allowed to exclude high-risk individuals, or to exclude pre-existing conditions for ever, or for a certain period of time. Contrast this to a group medical plan offered by employers where everyone that is eligible for the plan can be covered. However, if you lose your job, you will also lose your medical coverage, which makes an individual plan better in that you can carry it from job to job, though it will generally cost you more.

To offset some of the costs, and to come up with what is perceived as an affordable individual health insurance plan, you will find high deductible options and co-pays available which increases your out-of-pocket expense. Simply put, this means you will foot more of the total bill and will have to satisfy your annual deductible before your medical plan begins to help pay the bills.

There are advantages to both group medical coverage and individual healthcare plans. However, if you are self-employed or unemployed, then an individual plan may be the only option available to you. Whatever avenue you choose, having access to affordable medical care often times means you need a good health insurance plan.

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4. Group Medical Insurance
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