Insurance Information

Switching from group to individual health insurance is a change many people are currently facing. There are differences between the two types of insurance and their cost. Becoming familiar with some of those basic differences will help you to know what to expect.

Group health insurance
Group health insurance is purchased by your employer from a health insurance company. Everyone who is eligible can receive coverage under the plan. Group health insurance is less costly than individual health insurance because of the buying power of the group. The insurance company bases the premium upon a calculation of how much insurance the group as a whole will use. However, if you are buying individual health insurance, the calculation of your premium is not based on a group, it's based on you alone. That is why individual health insurance can be so expensive.

Individual health insurance
Individual health insurance is health insurance that you purchase from an insurance company on your own, and not through an employer. You can choose coverage for either yourself or your self and your family, individual policies often provide less coverage than group policies do. Under an individual plan, some services such as substance abuse treatment may not be covered.