Which Should You Choose, Private Or Group Health Coverage? - Choosing between group insurance and private decision can be a tough decision. In this article you'll learn the basics of both, so you can make a more informed decision.
Which Should You Choose, Private Or Group Health Coverage?
By George Hutton
Dec 30, 2010 - 9:16:51 PM
Most people are aware that there have been, and will be some changes in the health care system in the United States. Many people will have to make choices, and these choices will affect the kind of health care they can receive in the future. If you are faced with choosing between group health insurance and private insurance, then this article is for you. I'll go over the benefits and drawbacks of both, so you'll be able to make an easier decision.
Group insurance is the cheapest of the two. This kind of insurance you usually get through your workplace, and you usually don't need to pass a tough physical to qualify. Because the insurance company enrolls a whole group of people, they won't raise individual rates. If the rates go up, they'll go up for everybody, which means they will go up gradually over time.
One of the big downsides to group insurance is that it can be pretty limiting with regards to both the doctors you can see, and which procedures and treatments you can receive. If you do need some kind of specialized treatment or need to see some specialist, this will have to be approved beforehand, which can be pretty frustrating if you are suffering from a medical condition.
Private insurance is just the opposite. There are generally no restrictions on which doctor you can see, or which procedure you can benefit from. There is general a set payment plan, where the insurance company pays the bulk of the procedure, and you pay the rest. This is useful for self employed people, and those who travel quite a bit.
Naturally, a plan with such flexibility doesn't come cheap. The biggest drawback to private insurance plans is that they are very expensive, sometimes several hundred dollars per month. Another downside is that they can be hard to qualify for if you have existing conditions. One more downside is that they can raise the rates frequently, or even drop coverage altogether if they think you have become too big a risk.
In general, group insurance is perfect if you don't go to the doctor too often, and don't expect any specific issue to come up. It's cheap, and easy to get into. On the other hand, if you are self employed or travel quite a bit, then private insurance may be the best bet for you.
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