| There are many questions that people have | | | | purchased privately on an individual basis, or |
| regarding health insurance. This is because the | | | | through mass purchasing groups such as credit |
| insurance purchasing process involves many | | | | unions and professional or trade associations. |
| people, from the customer and the agent to the | | | | 3. What are the advantages of group insurance |
| underwriter and insurance company. For the | | | | over individual insurance? |
| average consumer, it is easy to become baffled | | | | For an employer that intends to provide insurance |
| by the process; but, learning about the process, | | | | protection to its employees, the group approach |
| educating yourself, gives you much more | | | | ensures that all employees, regardless of health, |
| purchasing power. | | | | can be covered. Those with known health |
| Below are some samples of questions, and | | | | problems, who might otherwise be unable to |
| answers, which are believed to be among the | | | | obtain individual insurance, can be covered |
| most common that individuals and self employed | | | | automatically upon employment without evidence |
| consumers of health insurance have. To learn | | | | of insurability. Although some limits may be |
| about the health insurance process, simply scroll | | | | imposed on new hires for certain conditions that |
| the list; or, to seek specific information, you can | | | | predate their enrollment in the plan, most |
| jump to that category. | | | | employees can receive coverage as soon as they |
| Overview of insurance | | | | are eligible. |
| There are a lot of questions normally require | | | | Group insurance offers a lower cost per unit of |
| clarification before deciding any purchasing of | | | | protection than individual insurance, because the |
| insurance. | | | | economies of scale resulting from selling, installing |
| The first will be what is the major difference | | | | and servicing one plan covering many individuals. In |
| between group and individual insurance? | | | | addition, group plans are typically more flexible and |
| The major difference between group and | | | | tend to provide more liberal benefits than individual |
| individual insurance involves evidence of insurability. | | | | coverage |
| To purchase individual insurance, a person must | | | | 4. What types of group protection do most |
| generally answer a health questionnaire and | | | | employers provide? |
| undergo a medical examination to provide | | | | Although there are many variations of each, the |
| evidence of insurability to the insurance company. | | | | four major types of insurance coverage provided |
| An insurer may decline coverage on the basis of | | | | by employers to their employees are life, |
| the applicants personal habits, health, medical | | | | accidental death and dismemberment A D & D, |
| history, age, income or any other factors that | | | | disability and health or medical. Some employers |
| bear on risk acceptance. Or the insurer may issue | | | | also provide additional coverage, including group |
| a policy with limitations on coverage. | | | | legal, travel accident and vision and dental care. |
| Most group insurance, however, is issued without | | | | 5. How can a labor union provide group insurance? |
| medical examination or other evidence of individual | | | | A labor union can provide group insurance for its |
| insurability because the insurer knows that it can | | | | members under a policy issued to the union. The |
| cover enough individuals to balance those in poor | | | | union is the policyholder, just as the trust is the |
| health against those in good health. The risk of an | | | | policyholder under a MET. A union may purchase a |
| insurer failing to achieve this balance is diminished | | | | group policy for a large number of members who |
| as the size of the group increases, or as the | | | | are employed by the same company, or for union |
| insurer underwrites additional group policies and | | | | members working for different companies. Group |
| increases the total number of individuals covered. | | | | insurance purchased through a union is particularly |
| This is known as the law of large numbers. | | | | advantageous in industries such as construction, |
| 2. What are the various ways that individuals | | | | where union members may work for many |
| receive health insurance protection? | | | | employers during a year. |
| Besides participating in group insurance plans, | | | | Despite the opportunity for labor unions to |
| individuals may also be covered under federal and | | | | purchase group insurance, few group contracts |
| state government sponsored programs such as | | | | are issued to unions today. Organized labor more |
| Medicare and Medicaid, service type plans such as | | | | often obtains insurance benefits for its members |
| Blue Cross/Blue Shield or so called alternative | | | | through collective bargaining with employers. As a |
| health care systems such as health maintenance | | | | result, union members are usually covered under |
| organizations HMOs and preferred provider | | | | group insurance plans sponsored by one or more |
| organizations PPO. Insurance may also be | | | | employers. |