The pros and cons of group medical plans

Medical insurance come in all shapes, sizes and clauses. Initially they all may seem the same, but a careful look and you will notice that each policy is as different from the other as it could be. However health plans can be broadly classified into the following categories

-    Individual
-    Family
-    Group
-    Travel
-    International

Individual health plans are those that cater to one person and are paid for by the individual himself. Though these individual policies are costlier than other plans, they can be customised to personal needs and are hence most helpful.

A family medical plan, as the name suggests, is for the entire family. These plans are more like group insurance but the difference is individual needs of every family member is taken care of.

A group insurance is a bunch of individual health plans. They are usually opted by companies who provide insurance to their employees. They are the cheapest way to get insurance. The sheer number reduces the cost of individual premiums. Not just the price that it comes for, there are other advantages of opting for a group plan as well.

A group plan usually provides more coverage at the same price. It is because the operational costs are reduced. If a employee is opting for a plan through his company, then his application will be considered in all probability. There are more chances of a single medical plan being rejected than one that is a part of group coverage.

However, with the recession setting in, many companies are cutting down on the benefits offered on the group medical plans. There has been a rise in the price of premiums that employees are expected to pay. In many cases, it has even become 100% for the premium of the dependant. Companies are also cutting down on the medical services that are covered in the health plan. Additional benefits that are often the highlight of a group plan are been withdrawn so as to cut costs.

There is another big drawback of a group plan. Often, they cover a very limited number of diseases and can be best used only as a supplementary plan. Hence, in many cases, if an individual has a comprehensive plan already, then he would only be wasting his resources in a group medical plan.

Group health plans are attractive because of their costs. But they have their shortcomings as well. Thus it would be a good idea not to get carried away by the price tag alone and instead opt for a medical plan that matches your requirements.