Group health insurance is insurance that employers or large organizations offer. This kind of insurance is offered to a large number of people. People looking for individual insurance are not able to participate in these plans.

Most states have laws requiring employers to pay some of the premiums with these plans. These types of plans are often less expensive because of the amount of people involved in the plan. The cost is spread among the entire group.

Group health insurance comes in 2 different forms. One is Managed Care; the other is Fee for Service. Managed care is further broken down into more categories. The first is HMO. Health Maintenance Organization plan is the strictest and has a list of providers and primary care doctors. You are to only see the doctors on this list and if you need to be referred out for service, the doctor needs to make the referral. If no referral is made, the cost for the additional services is paid for completely out of pocket.

A second option in the Managed Care form is PPO or Preferred Provider Organization. This plan has more leeway than the HMO. If you use a doctor or service on their list, you will be able to take advantage of incentives and offers such as lower deductibles and co pays.

A POS is the Point of Service plan. This plan allows you to decide which option you would like to use, either the HMO or PPO, when the time comes that you need your plan. You can change which option you would like your plan to be each time you use it.

The second type of group health insurance is called Fee for Service. This type of insurance is also called indemnity or traditional plan. With this plan, you have the option to choose any doctor or provider of your choosing. The fees with this plan are usually higher but there are no co pays. There will be a yearly fee and coinsurance that will need to be paid for.

Group health insurance is a type of insurance offered that covers a large group of people. The premiums for these plans are lower than individual plans and have many options to choose from.

Learn more about Health Insurance. Stop by Samantha Malone’s site where you can find out all about group health insurance and what it can do for you and your group.

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