April 30, 2021
Agency
How Much is Group Health Insurance?
The majority of individuals find health insurance through their employer for a variety of reasons. It is often easier and you don’t have to worry about operating an individual policy. The main reason, however, is that group health insurance is often
significantly less expensive than individual health insurance.
How Does Group Health Insurance Work?
In a workplace setting, an employer agrees to buy a health insurance plan that it extends to employees within the business. Those who choose to enroll can receive health insurance not only for themselves, but also for their families.
By providing health insurance as part of its benefits package, the employer can ensure that employees have access to medical care when they need it. That can ensure that employees are better able to maintain their own health, and continue to work for the business. It often works as a great way to attract employees to the business.
Additionally, employees can usually add more participants than just themselves to the plan. This means that their entire family can get covered, and reap the cost benefits of a group health insurance plan.
How to Pay for Group Health Insurance
Group health plans are not free health insurance. Usually, employees must pay a portion of their premium through a deduction from their paycheck. However, there are other costs that you might have to pay when you go to receive your care. These might include:
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Co-payments: These are nominal fees that you might have to pay your doctor at the time you go for your appointment.
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Deductibles: Most health plans have deductibles, which are a cost you agree to pay first, before your plan pays. For example, the plan might have a $1,000 deductible. You therefore will pay $1,000 out-of-pocket before your plan pays for the costs of your care.
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Coinsurance: When your plan pays for certain care, you might have to pay for a percentage of the care. For example, the plan might pay 80% of the cost of an MRI, while you will pay the remaining 20%.
The thing to remember is that different types of care have different cost obligations. For example, you often can receive routine wellness care, like immunizations, that aren’t subject to your deductibles.
Whether you own a business or are a covered employee, be sure to ask about the coverage available under your group health insurance.
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