What is Group Health Insurance Plan?

1. What is Group Health Insurance Plan? Group health insurance is a type of medical insurance package that covers group of people, or employees working in an organisation, or of a society or of a registered residential apartment. The plan covers medical benefits for the employees (insured), their spouse, their children and the dependent parents (if mentioned). The consolidated premium is calculated on the basis of the headcount working in organisation, their nature of job and their area of operation. Although, the premium paid by the employer is tax deductible for the employer, nowadays, companies deduct a certain percentage of this premium from the employees’ salary. If we have to compare the group health insurance against the individual plans, then the group health insurance plans are usually cheaper than the individual plans because the risk to the issuer is spread out to the entire group, making it affordable for both the parties i.e. the employer and the employees. Source: securenow.in w w w . c a p b l u e c r o s s . c o m