Individual Health Insurance vs. Group Health Insurance

Individual vs Group Health Insurance

By Thomas Cazneau
There are two options available when looking for Kaiser Permanente medical coverage. These options are individual health insurance and small group health insurance. Sometimes it is difficult to know which type of policy would be right for you. Below are some helpful tips to help you decide.

Individual or Group Health Insurance: What’s the difference?

First let’s talk about the differences between Kaiser Permanente Individual and Group Insurance:

Individual Health Insurance

Individual health plans are geared for people wanting a medical policy at the private level. It is a popular choice for those desiring a relatively inexpensive plan, as well as for those looking for personal insurance while awaiting eligibility for employment health benefits. Whatever the scenario, Kaiser Permanente has several cheap individual health insurance options. For more information, view Individual Health Insurance or go straight to the application.

 Group Health Insurance

Kaiser Permanente Small Group Health Insurance is available to businesses consisting of 2 to 50 employees. The benefit of choosing a group policy is that all eligible employees can be enrolled onto the group plan, regardless of health history or pre-existing conditions. For details, view Group Health Insurance

Which type is right for you?

In some situations, people qualify for both individual health insurance and small business plans. Here is a list of details to compare between the two types of Kaiser Permanente health insurance policies before making a decision:

Eligibility:

One can be declined for Individual Plans for health related issues. This is true until 2014, when the Health Reform Law is implemented. Depending on how serious the pre-existing condition is, small business health insurance might be recommended over individual health insurance because the applicant can’t be denied for health reasons. If one owns a small business, it is advisable to get both a quote for Individual and Small Business plans.

Duration:

Coverage under a small group health insurance plan is available only as long as you are an eligible employee of the company. Otherwise, both group and individual plans are month-to-month.

Cost:

In general, the cost of a Kaiser Permanente individual health insurance plan is less expensive than a small group plan. In some scenarios, however, small group health insurance might be less expensive. Here are some examples when this might be true:

  • Larger families on a group plan can save money because the cost for kids is the same whether there’s one child or more.
  • Groups allow families to enroll together, which translates into a lower family deductible and out of pocket maximum.
  • Small group rates are dependent on the age of the employee or owner.

So, couples who are both linked to the business may save money on the premium if one of the spouses is in a lower age group. Then, the cost for the older spouse will not be used for the rate ns. The employee who works for the company may save money on their premium because the company contributes toward the cost of the employee’s price and on some occasions may also help cover dependent premiums. Employees and owners will often find that small group health insurance premiums are much lower than Cobra and HIPAA. Sometimes the group rates are lower because the company is located in a lower priced service area than the private rates.

Attempting to understand either individual or small group health insurance policies can be difficult. If you would like help answering any health insurance questions, feel free post them below, and we would be happy to provide you with personalized service.

 

 

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