Comparing Family Health Insurance Options

When it comes to getting family health insurance, there are going to be a lot of different options for you to consider. There will be many different insurance providers, and each of them is going to have multiple plans to choose from. Here are the basics of family health insurance and a few of the options that you have.

Group Medical

One of the most common methods of insuring your family is through a group medical plan. This is commonly offered through your employer. The employer will contract with a particular insurance company and provide benefits to their employees. Most of the time, the employee will have his or her premiums paid by the employer. The employer may also pay a portion or all of the premiums for the rest of that employee's family. In many cases, you will be able to save money by utilizing a group health insurance plan. The rate that you will pay is going to be cheaper because the employer is purchasing insurance in bulk. In addition to this, part of your premiums are going to be paid by your employer.

Private Health Insurance

Another option is private health insurance. If your employer does not offer a group plan or you are self-employed, this will provide you with a way to access insurance coverage. In most cases, private health insurance is going to be more expensive than a group medical plan. If you get an equivalent policy, you are going to be paying a little bit more for premiums.

Catastrophic Health Insurance

A type of private health insurance that many people choose to purchase is catastrophic health insurance. This is also known as a high deductible health insurance plan. With this type of coverage, you are not trying to cover the costs of small medical needs. Instead, you are purchasing an insurance policy to cover you against large medical bills. For example, you want something that is going to pay for major surgery if you have to have it. You do not necessarily need a small co-payment when you visit the doctor. This type of health insurance is going to come with lower premiums, and it will allow you to invest in a health savings account. With a health savings account, you will be able to make tax-free contributions to a savings account that can pay for medical expenses. 

Individual vs Group

You will also need to assess whether it would make more sense to purchase individual health insurance plans for everyone in your family or to go with a family plan. In some cases, it might make more sense to purchase individual plans for each person in your group. However, as a general rule, it is going to be cheaper if you purchase insurance in the form of a group plan. The insurance company will basically be providing you a discount for giving them more business.

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