Individuals having group health premiums are very lucky and stand to gain a lot through group Health Insurance as Group health Insurance is subsidized by the employer. In Colorado an employer must contribute at least 50% of the employee only premium. If you happen to be the employee you will benefit with a richer health plan for less premium. It may be cost prohibitive to add dependants to the employer’s plan. In this case where dependents cannot qualify on the employer’s plan, they may be able to go for individual health insurance plan.
The Working of Group Health Premium
Whether it is a large family or a small family the group health premium is the same if it is paid on the employer’s plan. When you pay in the individual market you pay separate premium for each individual. If you had paid through the employer’s plan you would have been lucky and got a better deal. It is advisable not to make any changes to health insurance without consulting an experienced health insurance advisor in your state.
In Colorado and in most states group health insurance is a guaranteed issue. You cannot be turned away because of pre-existing health issues. This is a blessing if you happen to have a family member who has a medical problem that prevents you from qualifying for individual health insurance. This is not as easy as it appears. Tough though it is, it is guaranteed for people having pre-existing medical problems, it definitely comes with a price. This feature is the cause of the disparity between group and individual health insurance. In the state of Colarado individual health premiums are less expensive than group health premiums.
The Cons of Group Health Insurance
Group health insurance can be more expensive than individual health insurance. There are a few problems in the event of the employment being terminated by the employer, the benefits are expensive and the term is limited. In such a situation you will have to look for another job with benefits. The other option is to have an individual health insurance plan or join government health insurance program for the uninsured. As far as possible is advisable to have health insurance or you and your family may be in jeopardy.
Group health Insurance premiums are rising faster than individual health insurance premiums because they are guaranteed and attract all comers especially those with high medical costs.