Since group plans are guaranteed issued policies and not subject to medical underwriting there is more liability insuring them so the premium is based on a census table of the group and subject to a 15% discount if all overall healthy or 15% rate increase if pre-existing conditions found through the limited underwriting/review that is performed. It also assumes maternity coverage whereas for individual medically underwritten plans one must add maternity coverage as an optional benefit. So with that said, group is usually more costly than an individual plan since medically underwritten plans can decline an applicant, issue exclusionary riders and/or impose a rate increase to an individual’s monthly premium. Whenever possible, it is more cost-effective to go with an individual plan since you can usually find a comparable plan in benefits at a much lower premium.
From: http://echealthinsurance.com/health-insurance-advisor/group-vs-individual-health-insurance/
East Coast Health Insurance
Florida Health Insurance
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Group health insurance is a much more profitable option as compared to individual plans. Group plans are not only cost effective but also reduces a lot of paper work. From the above article I came to know more points of difference between these two plans. Thanks a lot for sharing.
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