Group health insurance is purchased by a single entity representing a large group of insureds. By purchasing the insurance in bulk, the entity can lower the cost of insurance for each individual insured on the plan. For example, an employer with 200 employees could likely secure a quality group health plan for only $200 a month per employee compared to $300 a month if each were to buy individually. The employees or named insureds within the group can then pay the group health provider for their shares. Some group health plans fund part of this monthly contribution, while others require each member to pay his or her full amount.

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