Most people believe that health insurance individual and group health insurance are basically the same and the only difference being that it is sold to individuals and the other is sold to organizations employers and other groups (such as clubs) to cover employees or members. In fact, it is not as simple as that individual and collective work and health plans differ in a number of important points.

One of the main differences is that the group has a less restricted and usually do not require a rule that under the plan, proof of insurance will be covered. In other words, the mere fact that it means a member of the group that the plan is that you are entitled to coverage.

Another important difference is that the contract to a group plan from insurers and employers unions, trust, association or other sponsor and is not not directly with you, as this would be the case, the individual, with a plan. This means that you have no authority to negotiate changes to the plan to accommodate your specific needs and that if, for example, changes between your employer and the insurer, you have no real power to intervene .

The big benefit for most people want health coverage through a group plan is that there are fewer restrictions and is generally cheaper than an individual level. However, a significant disadvantage that your membership is bound by the plan, your group membership and, in the case of a job, a change in your employment status will affect your coverage. For example, if you are retired, discharged, quit or simply reducing your hours you could suddenly find that you and your family to lose your health insurance.

Now, of course there is some protection for people who lose their jobs through no fault of their own and the Omnibus Budget Reconciliation Act (COBRA) allows you to control your coverage group to retain a certain time (usually 18 months), while you make other arrangements. The disadvantage of course is that you still have to cover the charges which can be very expensive because you have to pay not only the employee contributions that you pay everything was working, but also contributions from the employer, since you do not have more information on the payroll. The benefits you are entitled to coverage under COBRA also be reduced in many cases.

Another important difference between the group and individual health insurance, what is remarkable here is clearly age discrimination in employment law. This means that if a group plan is the existence of a group of twenty or more employees, the employer must provide insurance for all workers, including their spouses and dependents. Therefore, there is no age limit imposed for the cover and this is especially useful for older workers.

This, of course, are some major differences between the group and individual health insurance represented, but a good starting point to help you decide between the two. Whether you choose must be of course a personal decision, but an important thing to remember is that health insurance for more and more difficult and more expensive older you get, and even if you do not take “refuge”, decision under an employer plan to be, will surely come a day when you are looking to own and forced to meet outside of your employer’s plan.

Your employer, the plan may very well now, but be sure to see not only suit your current needs but also to your long term needs.