If your job offers you health insurance, the odds are good that you have a group health plan. These are very popular with employers because their uniform nature makes payment, processing claims, and helping their employees understand much simpler.
A group health plan is a health insurance policy or plan that’s available to members of a select group. The majority of the time, this select group is people who work for a certain company and their dependents. Everyone who is eligible for this plan receives the same coverage; it’s a one size fits all approach to health care. This insurance policy could be affected by the employer or the worker’s union (where applicable) and is generally considered one of the most important employee benefits. As such it is considered to be part of the compensation offered to workers in return for their work and labor. It’s not free; unions especially can choose to negotiate for more favorable group health plans rather than focus on getting a higher salary or starting hourly wage, etc.
These group plans typically work because the employer is given a price by the insurance company that suits them, and then each employee is left to navigate their health plan on their own. They can be as varied in composition as any other health insurance policy, but typically rely on a network set-up that rewards people for visiting in network doctors and could even go so far as to deny coverage for claims that are made in an out of network setting. What their benefits are, etc., is not mandated.
Though the most common group health plans are employer/employee based, that’s not the only model that works for this kind of insurance plan. So long as it’s a standard plan that’s only available to people within a certain group it’s a group health plan.