Group Health Insurance Flashcards, test questions and answers
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What is Group Health Insurance?
Group health insurance is a type of health insurance policy where a single policy covers a group of people in an organization or association. It provides coverage for medical costs for employees and their dependents, including spouses, children, and other family members. Group health plans are typically offered by employers, associations, or trade groups to their members.Group health insurance plans can be tailored to meet the specific needs of each group member. They typically offer lower premiums than individual policies because insurers spread the risk among all of the insured members in a group. These plans also provide flexibility when it comes to choosing doctors and hospitals as well as covering different types of services such as preventive care and prescription drugs.Group health plans can provide peace-of-mind knowing that medical bills will be covered if something unexpected happens. They also help reduce out-of-pocket expenses since they offer discounts on certain services like vision exams or prescriptions drugs that may not otherwise be covered by individual policies. In addition, they make it easier to stay healthy with access to preventive care services like annual physicals or immunizations at no additional cost. For employers who choose to offer group health insurance plans, there are several advantages including tax incentives and increased employee recruitment opportunities due to attractive benefits packages for job seekers. Offering group coverage can also serve as a tool for retention since employees tend to stay longer when they have access to good quality healthcare benefits from their employer at an affordable price. Furthermore, it helps them manage costs better since expenses associated with running the plan are fixed rather than increasing over time based on usage rate changes like in individual policies which sometimes result in higher premiums over time due to unexpected increases in utilization rates by policyholders within the plan’s pool of insured individuals.