By far, the cheapest way to get health insurance is through a group insurance plan. With group insurance plans, a group of people have one contract with the insurance company. This almost always costs less than if each member of the group had an individual plan. You might think of it as buying wholesale as opposed to retail. The group has more purchasing power.

With group health insurance plans, there is just one contract, and the company issues certificates to particular members of the group. In this way, individual members of the group save money on the benefits they would get with an individual plan.

Group plans often have special coverages that would be expensive with an individual policy. This is because the cost of covering one individual's risks is made cheaper by the low risk of the others in the group.

Types Of Group Plans

Most often, group plans are available through your employer. Most companies offer a group health insurance package to all their employees.

There are several major kinds of group plans.

- Fully Insured Employer Group - In this case, your company has a contract directly with an insurance company or HMO. If you work for a large company, this might be the case. They pay for the group plan and allow employees to choose if they would like to join.

- Small Employer Group - Smaller companies may take out this type of policy. In this case, many small employers band together into a larger group plan. These group plans are designed for certain industries, and the premiums are set according to the particular risks of the industry. This system allows small employers who would otherwise not be able to pay for a large group plan to get one.

- Health Maintenance Organization - This is also called an HMO. An HMO is a large network of companies and medical professionals. You can join through your employer. In an HMO, employees must choose a general practitioner from a list provided. If you have to see a specialist, the general practitioner can give you a referral. In this case, you are limited by which doctor you can see, and the limitations vary from one plan to another.

How Do You Get Group Health Insurance?

Most people get group health insurance through their employers. Companies are not required to provide health insurance, but most companies do because it's standard practice. A company with no health insurance benefits doesn't look very promising to potential employees.

Employers usually offer different plans for different types of employees. Some employers require you to be a full-time employee in order to be eligible. Others have limited health insurance benefits for part-time and on-call employees.

Even some employees who are eligible for group insurance plans through their work, opt to take out an individual plan because it suits their needs better. This is especially the case where an employee has a family and needs fuller coverage.

Group health insurance plans are a great way to save on health insurance. Check out the options that are available to you.