Group Health Insurance vs. Individual Health Insurance
One of the first things you need to understand when buying health insurance is the difference between group health insurance and the individual kind. This is something that I didn’t have a firm grasp of going in and I think it helps to understand how these differ so that you know what to expect.
Individual health insurance is what you purchase if you can’t participate in a group plan. You buy this on the open market at a place like eHealthInsurance.com or Healthcare.gov.
Just to clarify, you can purchase individual insurance for your entire family. “Individual” doesn’t mean one family member.
Group health insurance is cheaper (with the exact same coverage) than individual insurance. Why? Because with group insurance, the risk is spread across a large number of people. Also, typically with group plans, your employer is picking up some of the costs.