What is the typical feature of group health insurance plans?

Group health insurance plans typically feature lower premiums due to pooled risk among members. This is because when individuals come together as a group for insurance coverage, the risk of having to pay out for medical expenses is spread across many people, rather than being concentrated on just one individual. This collective sharing of risk allows insurance companies to offer lower premiums compared to individual policies, where the risk is carried solely by the individual.

In addition, group plans often include benefits that are not available in individual plans, offer a more comprehensive range of services, and can create economies of scale that contribute to reducing costs for members. This widespread sharing of financial risk can lead to more affordable health care options for employees and their families under employer-sponsored plans.