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Types Of Group Health Insurance Plans You Should Know
Published by: Agastya Kaviraj (16) on Wed, Mar 17, 2021  |  Word Count: 769  |  Comments ( 0)  l  Rating
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There are different types of health insurance plans out there. Each of them is broad enough, making sure there is a plan for each of them. The plans' choice depends on numerous factors such as the premium amount, maximum sum assured offered, coverage types, and sometimes the critical illness covered. There are two kinds of plans offered depending on the number of people covered – individual and group.

But this article focuses on group health insurance. Let us start with what is it. It is a policy where the covered provided is for a group of people. The coverage is for the people in the group and their dependents, such as spouses, children, etc. Such plans are offered by organisations you work with. However, the coverages under group plans are not extensive. Hence, you do need an individual plan too.

Now, there are different types of group health insurance plans to choose from. They are –

HMO plans

Health Maintenance Organisation plan's primary characteristic is that services under this are limited to a specific geographical location with exceptions for out-of-network coverage areas. The coverage given gets mutually decided between the group members. The members should use the coverages within the geographical location. These members should also decide on the group doctor who later will take all concerned health decisions.

PPO plans

Point of Service plans is a trade-off between HMO and PPO plans. Although there are geographical restrictions here, there is not complete independence in that context. One should select between the in-network or out-of-network for claiming the benefits.

Minimum premium plans

These are beneficial for companies as they need only a portion of the monthly premiums, and the rest gets paid only when the insurance company pays the claim. The benefits that organisations receive here are least effects of bigger claims, better cash flow, and immediate benefits from minimum premiums.

Self-funded plans

Such a group health insurance policy gets funded from within the organisation without the involvement of the insurer. It is an outcome of the company's constant rise by finding ways to minimise the cost of offering group plans to the employees.

Benefits to the employees

Reimbursement support from the company

Since coverage gets offered to all the members involved in the plan, it helps those who seek to buy health insurance but cannot buy one due to expensive premiums.

Automatic insurance coverage

For getting insured under group health insurance, you should be part of the group. It means, when you join the company, you get some excellent coverages, which is part of your package.

Maternity coverage

There are waiting periods under the health insurance policies, which is not the case under these plans. One of them is receiving maternity coverages from the start, i.e., when you join the company.

Zero waiting period

The above point brings us to this. Like there is no waiting coverage for maternity, it works for other pre-existing conditions. You get coverage for all health conditions from when you join the organisation.

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