Need a group for medical insurance?

Question

Employer offers very skimpy medical insurance. Individual (i.e., non-group) insurance is very expensive. I have heard that groups have been formed so that members will qualify for group rates. Please tell which groups these are, and what you know about them. Many thanks.

Answer 1

Group insurance, on average, is twice the cost of individual plans, not the other way around. It may seem as though group insurance cost less, but often the enrollee does not take into account the employers contribution to the total premium. Group insurance is guaranteed issue in most cases, meaning they can't exclude an applicant, no matter their condition. Someone has to pay for this. There are many others reasons why group is more expensive, such as maternity, COBRA, Portability, etc., and all the other state and federal mandates.

Individual plans may exclude certain conditions, or refuse coverage. The upside is that if you are generally healthy, they are your best bet, especially with the higher deductibles. You can pick the plan best for you, and not what the group is offered.

Answer 2

You might be able to get a good deal via your UNION .. (in fact, it might even be worth joining just to get the deal :-) )

Answer 3

Usually a Health Insurance company will not insure a group that is formed solely for the purpose of obtaining health insurance.

To be considered eligible for Group Insurance, usually the group has to be "an employer group" (or business).

Health Carriers will also offer group insurance to Associations and Chambers. However, usually to qualify for membership in an Association or Chamber, you'd have to be a business.