Is Individual Health Insurance Cheaper Than Group Coverage?
After 15 years in the Health insurance field, I can’t tell you how many times I get asked the question, “Why are individual health policies, so much cheaper than a similar group plan?” Well, the answer is kind of simple. In the state of Florida, a true Small Group insurance policy is a guaranteed issue policy. In short, even if you have multiple chronic conditions such a Heart disease or cancer, the insurance company can not deny you coverage. However, you must meet all the term of a small business, and in order to avoid a Pre-existing clause in the policy, you would have needed to have 12-24 months of prior coverage. It that is the case, then the company not only has to issue to policy, but they also are on the hook for their portion of any claims. In contrast, in the state of Florida, an individual plan can be underwritten based off of your medical history, height, weight, zip code that you live in, and whether or not you are a smoker. This underwriting ability affords the insurance
