There are 1 answers for difference between Group and Individual Insurance?.

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  by Connor Killian On Jan 20, 2011

  Group health insurance coverage and individual coverage are quite different -- and the difference is very important to understand, as misunderstanding your benefit options can get you hurt.
  
  In group coverage, you get your policy through an organization (usually though not always your employer), and the employer manages the contract with the health plan. When you have group insurance, the insurance company may not exclude you due to any pre-existing conditions you may have. The health plan may not try to limit your coverage due to such conditions, either; everyone in the group gets the same package. So if you develop, say, diabetes, they can't suddenly say "we won't pay for that."
  
  In the individual policy arena, however, you're on your own. Insurance companies almost always do what's called "medical underwriting," in which they ask you incredibly detailed questions about your health. If they find the slightest thing to seize on, they'll deny you, or offer a price nobody can afford -- I once heard of the head of a family getting charged $2K a month! Not only that, since you don't have a tough benefits manager inside a company to fight for you, there's nothing stopping them from raising rates 30% a year or more. In fact, that's not uncommon.
  
  And on top of all that, if you get very sick, the horribly unethical people who run health plans may try to cancel your policy (usually by claiming that you didn't tell them about pre-existing conditions).
  
  In sum, I'd NEVER buy individual insurance these days, as it costs a fortune, offers little protection from MASSIVE increases and gives the health plan all of the power. If you are looking at ways to get covered, go for a group plan; if your job doesn't offer one, or if you're unemployed, see if a trade association in your field offers a group plan. Believe me, it's worth the trouble.

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