What is "group health insurance"?

Group health insurance refers to a policy that provides health coverage to a collective group of individuals, typically organized through an employer, trade association, or other group. The key aspect of this type of insurance is that it covers multiple members under a single policy, which can lead to lower premiums due to the risk being spread over a larger number of insured individuals.

This collective approach allows for more extensive coverage options and often includes benefits that might be more difficult to obtain through individual plans, such as preventive care services, mental health benefits, and wellness programs. Additionally, group health insurance can benefit from lower administrative costs and increased bargaining power with healthcare providers, which further enhances the coverage's affordability and accessibility for individuals within the group.

Understanding group health insurance is crucial within the context of how health coverage works in the broader insurance landscape and how it compares to individual policies and other specialized health plans.