For a majority of people, health care is one of those sensitive subjects. No matter what solution to health care is presented, there is undoubtedly going to be someone that disagrees. And given the current political climate, the debate over health care is at the forefront of everyone’s minds. Until this debate comes to some form of resolution, for most of us there will continue to be only two types of coverage: group insurance and private health insurance.
Of these two options, the more appealing is typically the group insurance option. Most people would rather not have to front the entire cost of the insurance, as well as worry about the myriad of other factors involved with private insurance. If your employer is going to offer health insurance as a benefit package, in most cases you will be best off taking the offer.
Group insurance offered by your employer will often cover at least a portion of your premium costs. Certain packages may even be designed to provide coverage for the employee’s family. For the company, providing this benefit can be a strong recruiting incentive and allow for retention of important employees.
Aside from the benefit of premium assistance, the major advantage to group insurance is that the employee is guaranteed coverage by the company’s plan. There is no sort of discrimination by the company based on the insurability of the participant. You cannot be turned down for preexisting conditions.
On the other hand, private health insurance does not share these same characteristics. You are responsible for the premiums of yourself and your family, and you are not guaranteed acceptance into the policy. If you have medical conditions that the insurance company deems risky, you will have a difficult time getting the coverage that you need.
Preexisting conditions are also a notorious problem for private health care insurance. If you are accepted into a policy with a preexisting condition, you will often have to wait a lengthy period of time before coverage will begin. You have to first prove to the company that you will not be a major cost liability to them.
Private health insurance is not all negative however. First of all, it is health insurance coverage, and some coverage is often better than no coverage. For millions of people, private health insurance is literally a life saver.
And while private health insurance is generally considered more expensive than group insurance policies, there are circumstances when the private option is cheaper. Small businesses can frequently get themselves into trouble with group policies. If they have a string of bad luck with a couple of expensive claims, their average claim per person increases. This later translates into much higher premiums for the entire group.
The bottom line is that health insurance is still a big concern for a majority of people. What works for one person, doesn’t work for another. Either way, it is a necessary evil, whether we like it or not.
