You have three main choices when attaining health insurance; governmental (Medicaid or Medicare), group or Florida Individual Health Insurance Plans. I am not an expert on governmental health insurance , however, from what I understand it can be a very lengthy process to see if you even qualify. This article will address a contrast between group and individual or private coverage and we will identify how you can potentially save money incorporating both plan types in your household.
First, let’s define the two. The definitions are as follows:
Group Health Insurance: Health coverage based on a collection of people, whether assembled by an organization or a business. The cost is spread out among the members of the group. Under federal guidelines, a “large employer” is one with 51 or more employees and a “small employer” averages 2 to 50 employees in a calendar year.
Individual Health Insurance: Health coverage on an individual basis, not part of a group. The premium is usually lower for individual health insurance than for a group policy.
You may find information online that states individual coverage is usually more costly than a group plan. That statement not necessarily true. While running a group quote, and comparing similar private plans (comparing individual vs. group) the cost is far more expensive on group.
The reason premiums “seem” lower is because most, if not all, of the premium is being paid by your employer. However, the real premiums are higher on group. Why? This is because group plans cover on a guaranteed issue basis. Guaranteed issue is insurance coverage that must be issued regardless of health status. This is a wonderful concept if you have medical conditions that might exclude you from a private plan. You must qualify medically for an individual health insurance plan. In saying this, you may be stuck on a group plan and not be able to move into a private plan in the State of Florida. This fact may change if reform passes. A private health plan application may contain as many as 40 health questions. An independent agent will make the application process a breeze for you, so do not be discouraged or feel overwhelmed.
If you are single, you may want to stay on a group plan due to the actual monthly premium cost (out of your pocket premium) being lower compared to a private plan if your employer contributes most or all of your premium outlay. However, if you have a family, you may have wondered…Why is it so inexpensive for me, but to add even one family member, the premium goes through the roof? This is because the employer is most likely not paying a dime for your family members.
If this is the case, RTC Insurance Advisors encourages you to call us at 352-200-2066 to see if a “carve-out” is in your best financial interest. A carve-out would be keeping the employed on the group plan and moving his or her family members on a private plan. This can take place if all your family members can pass underwriting and be insured. We will help you with this. It’s simple. If your family members can pass underwriting, then you should and mostly always will find significant premium savings, especially if the employer is not contributing to your families part of the premium. You get to pick from the best Florida individual health insurance plans for your family and save premium dollars in the process. Through running a fast 5 minute quote with us, if we find that you can’t save money, there is no reason to apply for a private plan at that time.
Let’s discover today if a private plan is for you.
Call 352-200-2066 or visit our website at www.rtcinsuranceadvisors.com and send us and email or run a quote for yourself if you would like. I hope to hear from you soon. Have a great day.