Why Is Individual Health Insurance Better Than Group Insurance?

SOURCE: Individual vs Group Health Plans

Because the ACA requires minimum levels of coverage and prohibits insurance companies from denying people coverage because of pre-existing conditions, individual plans are better and easier to get. Plus, they’re often more affordable than comparable group plans.

Unlike the group coverage individuals purchases the policy on their own. These policies can be purchased through the healthcare exchange, or off-exchange from the insurance carrier directly.

Differences Between Group and Individual Health Insurance Plans

Choice

  • Group plans typically give employees 1 – 3 plan options to choose from. These are plans picked by the employer.
  • With individual plans, employees go to the individual market and shop through the government-run public exchanges or in the private market where they purchase directly from the health insurance company.
  • The individual market gives employees significantly more options – sometimes hundreds. From there, they choose the plan that best fits their needs.

Cost

  • Because every employee’s unique needs can’t be accommodated by the employer’s choice of plans, some employees in a group plan find it affordable but lacking in coverage, while others are forced into paying for extra coverage they don’t need.
  • Plans in the individual market are typically less expensive than comparable group plans.
  • Plus, with hundreds of plans available for sale, employees get to choose how much coverage they want and need, and thus, how much they pay.
  • Some employees may even be eligible for government tax credits that reduce the monthly cost of their health insurance.
  • Look up your cost for an individual health plan here – Blue Cross and Blue Shield Easy Rate Calculator. There are other companies active in this space including United Healthcare, Scott & White, Aetna, Molina, Ambetter and more.

Plan Design

  • Group plans are chosen by the employer to accommodate the needs of everyone being covered at the company, so they typically offer as many providers, locations, and services as possible.
  • Individual plans are chosen by the employee for the employee, not based on the needs of coworkers.
  • Health needs can vary greatly across households and ages. With choice of plan design in the individual market, families choose the exact coverage that fits their situation best.

Independence

  • Employees lose their group plans if they lose their job or change to a job that doesn’t offer group coverage. Some even stay in jobs they don’t like because they don’t want to be without insurance.
  • Individual plans are separate from their employment, so employees can keep their coverage as long as they choose.
  • They can also choose to switch coverage and health insurance companies during the annual open enrollment period.

Former Self-Funded Employer Touts The ICHRA

We received the following unsolicited email this morning from a client we have worked with for more than 20 years who moved his plan to ICHRA’s last year. He’s happy he did. Continue reading 

Attention Brokers! Tired of shopping group health insurance and all the frustration that comes with it? Tired of the time, effort and expense it consumes? Tired of lasers, plan sponsors pitting brokers against each other? Tired of quoting on ten prospects and landing one? Tired of fighting annual renewals? Are you just plain tired?

Individual health insurance avoids all of that.

HERE’S A SHOT TO WAKE YOU UP!

  • No Underwriting
  • No participation requirements
  • No ineligible industries
  • Must meet federal mandated network adequacy requirements
  • Fully-insured
Dr. Bricker Explains ICHRA

Group Health Plan vs ICHRA

Let’s compare what your employer is paying for your group health insurance plan vs a Blue Cross Blue Shield individual plan. Continue reading