Group insurance involves a master-plan policy that covers an entire group of people. A case in point could be an employer, a labor union, credit union or trade union that is the policy-holder, while the employees or the members of the group are the ones covered by the group policy. Any group of people can take it whether big or small, provided that the union is for a common course other than benefiting from the insurance scheme. A Group Medical Insurance is not discriminatory in its coverage, but extends to anyone irrespective of the social background, age, gender or profession.
The premium that you pay to the insurance through a group health plan is significantly less than what you would pay if you hand an individual health plan. Some employers pay a certain percentage of the premium. There is, however, a provision for extra insurance coverage if you can afford to pay the additional cost. You can also change your benefits coverage if you notify the benefits administrator within the specified time of the qualifying event, usually 31 days. A change in the benefits coverage could be as a result of certain changes in your life. Before you enroll for group health plan with Olsommer-Clarke Insurance Group Inc, review the benefits plan since the coverage might change from year to year.
There are three main types of group health insurance plans. In a fully-insured plan, the employer buys the group insurance plan for employees through an insurance company. The cost of this plan is paid through premium contributions from the employees. In a self-insured plan with a third party administrator, the employers pay for their claims, but the processing of the same claims and administration of the benefits is tasked with the insurance company. Premium contributions from employees are kept in the health care fund purposefully for insurance claims later on. The final type of group health insurance plan is the self-assured. It is usually preferred by employers who pay and process their claims and determine the benefits coverage. Employee premiums are also held in a health care fund.
In summary, a Group Medical Insurance is beneficial, cost-effective and hassle-free. Members get the minimum cover as a benefit belonging to that specific group. It is important to note that these benefits end the moment you leave the group. It is then advisable to consider purchasing a separate individual plan.
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