There are key differences between individual and group insurance plans. Individual health insurance plans were designed to provide insurance to unemployed or self-employed persons not covered under their employer's plan. In some cases, individual insurance can be difficult to obtain at any price.
People with pre-existing, previously diagnosed, or treated health problems seeking new health insurance policies are considered high-risk by insurance companies, and may be unable to find affordable health insurance or any health insurance at all.
On the other hand, group insurance plans, which provide coverage for two or more individuals, cannot single out high-risk individuals; nor can they deny them health coverage. All individuals are covered regardless of their existing health problems, and high-risk individuals are factored into the total cost of the group plan.
The plan descriptions that follow outline the types of individual and group insurance plans widely available today.
Individual insurance. Since group insurance is so prevalent and lucrative, fewer and fewer carriers offer individual insurance. Individuals can purchase health insurance on their own, but it's usually very costly. It's estimated that 46 million Americans don't have health insurance.
