Group Health Insurance-What are the Benefits?

March 9, 2009 by  
Filed under Business & Employment Insurance

The risks in obtaining a group health insurance may not be the same as getting an individual medical coverage. Chances are it would actually be easier to apply and belong to one because the purpose itself is not merely based on a single person’s application for insurance but a group health insurance where the main purpose is providing coverage for a group of working people other than the reason of obtaining personal insurance.

This is regardless of age and other factors which hinder one to obtain coverage. The disadvantage though in belonging to a group health insurance coverage is that it cannot be converted to an individual insurance so therefore, if you don’t belong anymore to the employer who provided you with this insurance, then automatically you already lose the medical coverage.

If you are in the US and you leave your corporate job for a certain reason, then under the Consolidated Omnibus Budget Reconciliation Act, (COBRA) you are still covered under the group health insurance for as long as your employer has a total number of 20 or more employees and provided that you have not left the company for gross negligence and incompetency. This can still entitle you to up to 18 months of coverage that may be helpful in such a time that you would be able to find a new job or get a new insurance policy.

Another thing that is better with a group health insurance is that for as long as you are still working in your employer’s company then generally you are entitled for renewal of your coverage, unlike for individual insurance it will become the prerogative of the insurance company to decide if they will still renew your insurance since they will consider your records with them as well as your medical history while still covered under their policies.

There are indeed a lot of benefits when you are insured under a group health insurance because you don’t need to apply for it yourself and it is also one way of saving a lot of money especially that medical emergencies can arise at anytime. What is also good is that not only you can avail of these benefits but also your direct dependents without having to spend too much for their medical needs. You can also save a lot of effort in weighing options since this is already handled by the employer. What you need to know though is the coverage that the group health insurance has so you would know how this would affect you and your dependents should there be issues concerning this in the future.

Although you are not hands-on in availing the group health insurance, it would still be better for you to know what insurance you have and how it will work by the time you would need to use it already. To have an in depth information, it is also advisable for you to consult your company’s department who is responsible in handling your queries or you may also get in touch with the insurance company itself.