Group Health Insurance: The Two Types

 The ideal situation for those of us looking for medical insurance is to acquire a group medical insurance plan.

Unfortunately, employers are not compelled to provide their employees with any form of group medical insurance program. You will likely need to look for an individual medical insurance plan if your employer does not provide any type of group medical insurance plan, or if you are self-employed, unemployed, or only employed part-time.

And let's face it: finding an affordable individual medical insurance plan can feel like quite the scavenger hunt.

Your employer and a group with which you are involved are the two most common ways to obtain group medical insurance. Many organizations provide their members with a variety of insurance options, including life and health insurance as well as auto and homeowner's insurance. If you are a member of one of these groups, familiarise yourself with their group health insurance plan policies.

There are, in essence, two types of group medical insurance policies. You may be eligible for a fully covered group medical insurance plan, in which case your employer or business agrees to pay for all of your medical expenses. Alternately, you might enroll in a minimum premium plan, or MMP, in which case your employer or organization would be responsible for covering a portion of the cost of your medical expenses. Consider it a cap. Once that sum of money has been spent, the insurer takes over payment.

You might be given the option of a group medical insurance plan with a minimum premium that offers both basic coverage and major medical coverage, a group medical insurance plan with major medical coverage, or a mix of the two.