ipl-logo

Disadvantages Of Group Coverage

621 Words3 Pages

The advantages and disadvantages of group risk coverage

Group risk coverage is a form of insurance offered to groups of individuals who share similar characteristics. These groups usually consist of members of a particular profession or employees under a single employer or group of employers. Group risk cover differs from individual cover in that it considers the entire group as a single entity in evaluating, insuring and pricing for risk. The benefits usually covered by group risk plans include medical care, life insurance and disability care. All members of the group share in the financial risk of the covered events. Owing to the group being considered as a whole, cross-subsidising occurs whereby healthier lives pay the same premium as less healthy lives. (Clark, 2012)
The main advantage of group risk coverage is that the insurance administration, underwriting and marketing costs for a larger group are much less than those required for an individual …show more content…

Furthermore, group risk coverage is less comprehensive than individual cover. This may result in employees taking out additional insurance to protect themselves, in the event of these uninsured outcomes occurring (Clark, 2012). Some employees, not wishing to pay two premiums for coverage, may opt to pay for full coverage from an external insurer rather than for group risk coverage.
Group risk coverage is a popular insurance vehicle as it provides cover for employees and their dependents at a lower premium than under an individual insurance plan. However, the advantages of group risk cover are best displayed in large companies, while small companies often cannot afford this cover. Due to the limited protection offered by group risk cover, employees may prefer individual insurance or may be disinclined to seek employment elsewhere for fear of losing their current

Show More
Related
746 Words | 3 Pages

In typical bundled payment models, providers and payers share in savings and/or losses. When actual health care costs fall below the lump-sum payment, both parties keep a portion of the difference as additional profit. Conversely, the provider must provide extra services at a loss when health care costs exceed the lump-sum payment, though payers mitigate some of this loss. The potential for savings for payers lies in upfront discounted payments for episodes of care, as well

Read More
1130 Words | 5 Pages

Although this is under Obamacare exchanges, it shows that state-run exchanges can effectively control the cost of premiums. A state that has efficiently and effectively controlled the health insurance markets is California. Through their state-run exchanges, California has managed to control the type and price of care provided by setting up a system that required all health insurers to provide the same deductibles and benefits within each of their coverage levels (Scheffler, Para. 7). Their plan is set up so that “insurers in all marketplaces must offer a defined set of “essential health benefits” in all plans and may offer plans at four coverage levels: platinum…followed in descending order of cost and coverage benefits by gold, silver, and bronze. ”(Scheffler, Para. 7)

Read More
519 Words | 3 Pages

People that are at the poverty line can’t afford to pay such high monthly premiums and as a result decline coverage as a choice. We also see the economic concept of self-interest within the article. Often times an imbalance in the health market is created when the younger generation who is usually health doesn’t feel the need to have health coverage. For young folks it is in their self-interest to pay out of pocket only a few times if needed rather than pay monthly premiums. In the end they’ll pay less than they would for having health insurance.

Read More
991 Words | 4 Pages

While the individual mandate combats adverse selection and attempts to play on the core of human decision making, the exchanges employ old fashioned competition and market forces to penetrate an insurance market not exactly teeming with deals. Both provisions attempt to effect market conditions and in a greater attempt move toward a solution to our nations under insured and over-priced healthcare

Read More
873 Words | 4 Pages

In each of the suits the main issue focused on whether the individual insurance

Read More
832 Words | 4 Pages

Accessibilities to these kinds of services increase the overall health of the general population. With healthier people means longer life expectancies and an overall boost of the economy. It is well proven in medical studies that in a universal health care system, the standard of living of each individual is increased. Studies show that people living healthier lives allows for them to maximize their contribution to society. It is also known that Canadian citizens have the longest life expectancies in the world, higher than the United States of America by three percent.

Read More
858 Words | 4 Pages

The effects can be made through claiming through managed care by the organization. The managed care for the delivery and principles of finances, the patients and physicians must follow the policies and procedure of the health plans. The drug benefits in a pharmacy can be reduced in costs from 40 % to 10% comparing to people who are members and the non-members. The reimbursement if any the mechanism should be used by the MCOs that are effective. The MCOs should make sure that as much as the cost is low the services should be of a quality to make the patient keep coming.

Read More
1318 Words | 6 Pages

Some people are at a ton of risk, such as being old or having a history of poor health. These people in poor health are more expensive to cover simply because they hold more risk for the insurance company as they require more

Read More
451 Words | 2 Pages

Market forces want to provide health care, but to me the main purpose is more profit based If market forces are running insurances they are likely to put their money first and then provide health care. Affordable health care for those may not really be affordable and if the insurance is affordable its coverage may not be

Read More
149 Words | 1 Pages

1) The universal screening helps identify those at risk for reading disabilities and it involves the whole school. It is typically done three times throughout the whole school year. It assesses skills such as fluency in oral reading, phoneme segmentation and letter reading. The results are organized for discussion by school professionals, the scores are calculated for the students risk level determined by predetermined norms.

Read More
1767 Words | 8 Pages

The Concerted Cultivation of Superiority Whether they chose to spoil their children with love, objects, or opportunities, parents want to give their children the best childhood to prepare them for adulthood. Typically, the middle class and upper class use a parenting method Annette Lareau calls “concerted cultivation,” meaning that parents foster children’s talents and interests. Most parents that use this style of rearing follow similar routines such as maneuvering their schedules to alote multiple extracurricular activities, emphasizing the use of vocabulary and reasoning skills, and socializing their children to be comfortable around adults. While these practices seem to be successful in creating and maintaining class reproduction, they

Read More
593 Words | 3 Pages

At first, the debates were focused on the use of genetic testing for life insurance (Subramanian, 1999; Zick et al., 2000; Hoy and Polborn, 2000). However, in parallel to the rapid progress in scientific efforts to sequence the totality of the human genome, concerns about the consequences of genetic testing have been extended to other fields of insurance including health (Kaufert, 2000; Mossialos and Dixon, 2001; Geetter, 2002; Nowlan, 2002). On the one hand, because health insurance choice is a natural way to meet differing individual preferences and is important to promote efficiency through the benefits of competition, information on individual genetic risks may be considered as a way to promote more efficient price discrimination in the establishment of insurance risk premiums. Availability of genetic testing may provide new tools for a better knowledge by insurers of the individual-specific prices of health insurance. On the other hand, because a key issue in health insurance is that, unlike other services, the identity of the buyer can dramatically affect costs, it could be expected that genetic testing will exacerbate adverse

Read More
1019 Words | 5 Pages

Theses widely distributed costs and benefits applies to everyone because the benefits and costs all affect them. Narrowly concentrated costs and benefits

Read More
1185 Words | 5 Pages

And even if an area sees a fall in the crime rates, you are likely continue paying higher premiums because insurers are slow to update their records. Smart car insurance groups Normally, the higher the insurance group, the higher the premium. The ratings are decided based on information on the likely cost of any claim, including the time and cost of repairs, the value of the car when it is new, the performance of the car and the standard safety features on the vehicle. Besides, any modifications to the car can add extra cost to your premium.

Read More
1546 Words | 7 Pages

I agree to a certain extent that group counseling has more to offer than individual counseling. Not everyone is suitable for group counseling or individual counseling (Corey,2008 and Yalom, 2005). Group counseling however has many different benefits that I consider has more to offer. It could provide group support for the members who are affecting as they are not totally alone in the situation that they are facing. It is also effective as they provide a greater help and feedback.

Read More

More about Disadvantages Of Group Coverage

Related Topics

Open Document