Small group health insurance for individuals and businesses

Small group health insurance is a comprehensive term that can be applied to family health insurance, small business employer-based health insurance, or even independent group insurance. As expected, small group health insurance tends to be cheaper than individual insurance, but is more expensive than large group insurance. Many of these factors are beyond your control, but by shopping wisely, looking for opportunities to join a group health insurance plan, and preparing for future changes in the health insurance market, you can find affordable health insurance that meets your needs and budgetary limitations.

It's no secret that people who buy health insurance in the individual market tend to pay higher premiums than those with group coverage, but fewer people realize that individual plans also have higher average costs than out-of-pocket. According to the Commonwealth Fund, the average adult with business-backed group health plans spent $ 2,250 annually on out-of-pocket costs, while the average adult with a single plan spent $ 6,750 on out-of-pocket costs. However, other industry insiders say this can't really be solved without comparing quotes from actual policies. Ruth Stallman, a spokeswoman for the "Independent Blue Cross," says individual plans are becoming increasingly competitive. "It really depends on the plan itself and the cost-sharing amount of the business owner in many cases," she says. "In fact, individual health plans may be more affordable than you think."

On the other hand, according to the 2009 Commonwealth Fund study, 73 percent of American adults who tried or failed to buy health insurance were unable to do so because it was too expensive. It's also worth noting that with individual health insurance, your personal information will play a bigger role in determining costs. High costs can be based on much more than just pre-existing conditions. According to this Denver Post article, women can pay up to 50% more health insurance than men, even without maternity benefits.

Family health insurance is by far the most common form of health insurance for a small group, but it is not the only type. If you work for a small business that doesn't provide health insurance, it can be a lifesaver (literally) to find other shopping employees to buy health insurance together. Ideally, you can put pressure on the business owner to provide access to affordable health insurance, even if the business owner is unwilling to contribute the same cost. In theory, you can find any group to request quotes from health insurance companies, but these arrangements are often difficult to make and maintain.

Health care reform will certainly affect the future of small group health insurance, but each and every guess exactly how and to what extent this change will be. In principle, the health insurance exchange (which will go live in 2014) should allow people to buy individual health insurance plans at low rates similar to group health insurance, although the amount of costs will still have to be reduced. not precisely determined. In fact, most Americans are likely to pay less for their health insurance, but most of these savings will be achieved with government support rather than economic efficiency.

Of course, providing health insurance to thousands of employees in large companies is a very competitive market among health insurance companies. World-class health insurance brokers take the lead in rolling out the red carpet for these great companies. Unfortunately, anyone else can feel that they have been allowed to defend themselves. Individuals and small groups must take care of the larger overhead costs associated with selling these plans, even from the most responsible health insurance companies. To reduce this disadvantage, it is necessary to buy online. You don't have to wait for the 2014 health insurance market to be created. NetQuote offers many of the same benefits with the online referral service. By completing a simple online form, you will compare yourself to many of the companies that offer health insurance in your area. In addition to increasing competition, you can review the different premium policies and rates for your home.