What is considered 'group health insurance'?

Group health insurance is defined as a type of health plan that is offered to a group, with the most common scenario being that it is provided by an employer to its employees. This form of insurance typically covers a large number of individuals under a single policy, which can lead to lower costs and better coverage options compared to individual plans. Employers often subsidize part of the premium, making it a more affordable option for employees.

In the context of health insurance, group plans are advantageous because they encourage individuals to access healthcare by lowering financial barriers. These plans often have a variety of coverage options, allowing employees to choose the best fit for their healthcare needs. Additionally, group health insurance avoids issues related to individual medical underwriting, where an individual's health status might impact their ability to secure insurance or the rates they would pay. Rather, the risk is pooled across all members of the group, creating a more equitable system.

The other choices describe scenarios that do not align with the concept of group health insurance. Individual plans are purchased without employer sponsorship, coverage for families may fall under group plans when provided by an employer, and specialized policies for self-employed individuals also exist outside the traditional group structure.