Group Policy: This is a policy provided by the employer. In most cases the employer will pay part (sometimes all) of the premium for the individual employee, and the individual is responsible for dependent premiums. This policy will ask medical questions of each employee, but there won’t be any coverage exclusions for pre-existing conditions if the individual has prior insurance coverage. The carrier has to write coverage for the whole group or no one at all.
There are three different types of Group Policies:
- Full-Coverage Policy through a Health Maintenance Organization (HMO) or Preferred Provider Organization (PPO)
- Catastrophic Plan
- Health Savings Account (HSA)
Individual Health Policy: This policy can be written for full-coverage or catastrophic coverage only. Both policies are medically written by the insurance carrier, and the carrier has the option to exclude coverage for any pre-existing condition you may have.
Full-Coverage Policy: This policy covers full medical benefits such as hospitalization, doctors visits, prescription benefits, and other medical expenses once the deductible has been met.