Family VS Individual Health Care Plans | What Are the Differences?

by Ryan Yates on May 22, 2014

Of course the main difference between family and individual health care plans is that the family type covers more people than just one, the individual. Hello, Captain Obvious! Now, since family care plans cover more people, they also cost more. However, they don’t cost as much as buying every family member an individual health care plan. OK, that being settled, let’s examine each type of policy closer and see what the benefits are.

Types of managed-care family (group) health insurance plans:

For most people under 65 years, health insurance is provided through their employers’ group insurance plans. This being true, insurance companies consider these group plans very safe long-term bets, you can learn more here. They know that, in the long run, they will end up paying out very little for most employees in a given group. Every pay period, the employees’ premiums are automatically deducted; easy money in.

Because the insurance companies already know that they are practically guaranteed a large profit percentage on group-base plans, the premium rates are generally lower than with other avenues of obtaining insurance. You see, basically, if your employer does not provide your health insurance, and you are not disabled nor over 65, then you are responsible for providing your own health insurance – and that can be quite costly for most working-class people.

For example, in the US now, because of Obamacare, the average price for an individual health insurance policy (Silver level) is $328 per month. This, to me, is completely insane. I say that because many people I know have a very difficult time trying to feed their families and keep the electricity on, while the government continues wasting trillions of dollars of things like war and massive-scale embezzlement. Anyway…

Group/Family health insurance as an employment enticement:

Because there is such a serious need and demand for all people to obtain and maintain adequate health insurance coverage, it is also something that workers are demanding more and more from their employers. Now, there are no laws mandating employers to provide any group health insurance plans at all, but if they fail to, then they will not attract as quality of employees as they might otherwise. Obviously, the best employees want to have their health care provided for.

One positive outcome from this mandatory health insurance model is that, because employers are demanded to provide health insurance to their employees, they are also equally motivated to provide wellness programs for them. If they keep their employees healthier, there will be fewer claims, keeping the employer, and employee, premium rates to minimums.

In general, the health insurance industry continues to evolve into a giant that requires that each policyholder follows certain protocols of healthy behaviors. If you are self-employed, not employed or otherwise disallowed from participation in a family or group health plan, then you should be prepared to pay increasingly higher premium payments for any individual health coverage plans you may shop for. This, to me, is just one more way that world governments control their people: by enslaving them into hugely bureaucratic systems of profit generation.

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