The Pros and Cons of Group Health Insurance Pt2
And so, as time goes on, not only the average age of the group is growing, but the group is also appealing to officials with huge expected health costs. This is the situation we experience with major health plans, such as the US automakers and even government policies. In the end, the persons with many medical needs begin to outperform those who have little or no need and, therefore, the prizes are getting higher and higher.
The cons of Health Insurance Group
Group health insurance can be more expensive than individual health insurance. In fact, if you do not consider the employer’s contribution to the awards, then individual plans are almost always more accessible than group plans. Meanwhile, as we discussed earlier, it is not everyone who is eligible for an individual policy. What happens if your job ends (for you or your employer)? Yes, you probably will have some continuing benefit rights (via state continuation programs or COBRA), however, these rewards can be quite expensive and the term limited. Then, eventually, you have to secure another employment with benefits, an individual health plan (assuming you are insured), or possibly participate in a government health insurance program for the uninsured (if you are not sure). Let me emphasize that you should never run out of some important health insurance. Not having this insurance can put you and your family at serious financial risk. In fact, a recent study by Harvard University found that 50% of all bankruptcy applications were partly the result of medical expenses. At the same point, every 30 seconds in the United States, someone requests a bankruptcy after a serious health problem. Do not let this happen with you.
The group’s health insurance premiums are going up faster than individual health insurance premiums. Why? As most group plans have a guaranteed problem and once they accept “everyone who arrives”, they tend to attract people with high medical costs. On the other hand, most individual health insurance plans are medically subscribed. This means that the insurance company can say “no, thanks” to any applicant that it deems to be of no interest to you. Will he stand in his place – sign a contract to provide $ 30,000 in annual benefits for someone who would pay only $ 3,000 in prizes (for a net loss of $ 27,000) if he did not need it? Hmm … let me think about that. The answer is a loud no! “Due to this process of underwriting individual health insurance, insurers can control their risks and manage their profitability more efficiently, resulting in more stable prices. As you can see, there is no clear answer about what type of insurance is best. The answer depends on several factors and is different for each unique situation. The best advice I can give you when considering your health insurance 2020 options – get good advice from www.healthinsurance2020.org an experienced health insurance company.