Health insurance can be complicated, especially when you're trying to understand different plans. As health care costs rise, it's important to find suitable coverage for your needs. The experts at NorthEast Insurance Services in Freehold, NJ, share that one of their most frequent questions deals with understanding what sets group and individual plans apart. Here, they explain the similarities and differences between the two policies.
When you work for a company that offers insurance, you become a group policyholder. Group health care is usually less expensive to the insured because the employer is required to pay a portion of the premium. Companies also provide access to, but do not pay for, dependent coverage. Group health insurance policies are usually managed by an administrator or an insurance agent, so the employee is not responsible for handling enrollments or policy changes. Additionally, insurance premium payments are automatically drafted out of your paycheck.
"Individual" is a bit of a misnomer, as families are also eligible under these plans. These programs are available to people whose jobs do not provide group health care coverage. When you choose an individual policy, you are solely responsible for the entire premium payment, choosing your insurance products, and making changes to your plan. Additionally, if your income falls below a defined threshold, you could receive assistance to pay for your policy.
Regardless of your policy, your plan is required to cover basic health care laws as outlined by the Affordable Care Act. These rules include language regarding pre-existing conditions, maternity care, and prescription drugs. For detailed information, it's best to consult a professional insurance agent.
Both plans provide policyholders with essential health insurance coverage, even though there are several differences between them. The team at NorthEast Insurance Services is committed to helping you understand how to get the most coverage for your budget. With over 30 years of experience, they’ve earned the trust and respect of Freehold residents when it comes to their insurance needs. To find out more about health care plans, call (732) 972-1771 or visit online.