Group health insurance is insurance that employers or large organizations offer. This kind of insurance is offered to a large number of people. People looking for individual insurance are not able to participate in these plans.
Most states require that employers have to pay part of the premium on this insurance. Because of the employers paying part of the premium, the overall cost of the insurance is lower for all people involved.
There are 2 forms of group health insurance, managed care and fee for service. Managed care is broken down even further into 3 categories. The first category and the strictest is known as Health Maintenance Organization or HMO. This plan has a list of certain doctors and providers that can only be used. These providers can refer you out for other services but without your doctors referral, the full cost of your extra services will fall to you.
Preferred Provider Organization or PPO is the more generous plan out of all of the plans. With this insurance, there are benefits such as lower fees are reduced co pays if you use a service provider from their list.
The final option under Managed Care is POS or Point of Service. This option lets you choose what your plan will be at the time you need service. Each time you go to the doctor, you choose if you want an HMO or a PPO and you are allowed to change this every time you head to the doctor.
The second type of group health insurance is called Fee for Service. This type of insurance is also called indemnity or traditional plan. With this plan, you have the option to choose any doctor or provider of your choosing. The fees with this plan are usually higher but there are no co pays. There will be a yearly fee and coinsurance that will need to be paid for.
Group health insurance is a type of insurance that is offered by an employer or an organization. These are offered to large groups of people and the cost is spread around the entire group. The plans have a few options so do a little digging to know which one will be best for you.
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