Group plans — sometimes called "Family Plans" — might provide excellent, affordable benefits for families. Employers routinely offer group plans to their employees. The employees can then add their families to the policy.
If you have the opportunity to buy one of these plans, consider who you need to add to the policy. It's also wise to consider how the policy will affect your health insurance prices.
Adding Participants to a Group Plan
When enrolling in a group plan, most policyholders add their spouses and children. A family plan can often extend coverage to uninsured dependents.
However, even if you can add everyone in your family to a group plan, you should consider the pros and cons of this move. Analysis of your family's health needs can tell you if every family member is likely to benefit from your group coverage.
- Most group plans limit those who can qualify to be on a family insurance plan. Participants are usually limited to the spouse, children or dependents of the policyholder. Parents, grandchildren or extended family of a policyholder generally cannot join the plan. The only exception might be if the policy has legal custody of those parties.
- Your family might have health needs that your individual plan doesn't address. For example, you might find that your plan doesn't offer the strongest coverage for surgeries. If someone in your family requires frequent operations, it might be better to enroll that person in another health plan that better addresses their needs.
- Adding your spouse to your plan takes consideration. For example, you might find that your spouse's employer offers a plan that better meets their needs. In this instance, it might be better to let the spouse keep their own plan.
- Children will almost certainly need to buy their own health insurance upon reaching their 26th birthday. As they approach this milestone, begin searching for ways to insure them separately.
How Dependents Affect Insurance Pricing
When you enroll dependents in a family plan, you can usually expect to pay slightly more for coverage. Companies may charge higher premiums based on the number of participants.
However, some companies place maximum prices on some elements of family plans. This means that after a certain point, it won't cost you more to add extra dependents to your policy. In fact, adding someone to your own policy might even save your family more money than buying separate policies for each member.
This built-in affordability might help you better insure your family, at a better rate. That is why group plans are often popular options for families.
We can help you get coverage. Call Simpson Financial Group, Inc. at (978) 222-3939 for a free health insurance quote.