QandAs: Finance

What is a group health insurance policy?

Answer:
Group health insurance policies are policies that cover a group of people within an organization under a single master policy

which is issued to the employer or organization. This type of health insurance usually costs dramatically less than what individuals can get on their own. In addition, the costs are often covered by the employer as a benefit. If not covered 100%, employers often pay a portion of the premiums.

Your employer or organization may offer several different health insurance plans with varying premiums. For example, many offer both PPO and HMO health plans. Before signing up, review all of the choices carefully to select the best choice for you and your family. In addition, if your spouse’s organization offers group health insurance, carefully review his or her plan to see which plan is better for you. If your spouse’s employer pays the entire premium while yours only covers 50%, it might make sense to enroll under your spouse’s group insurance policy.

Group health insurance is typically offered to employees and their families once the employee becomes eligible. Each year, an “open enrollment” time period rolls around where employees can make changes and switch plans as needed.


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