Group Health Insurance Plan

AAA

DEFINITION of 'Group Health Insurance Plan'

An insurance plan that provides healthcare coverage to a select group of people. Group health insurance plans are one of the major benefits offered by many employers. These plans are generally uniform in nature, offering the same benefits to all employees or members of the group.

INVESTOPEDIA EXPLAINS 'Group Health Insurance Plan'

Group health insurance plans usually cost less for participants than individual plans that offer the same benefits. This is because the risk is spread over the entire group, rather than one person. If the cost of premiums is borne by the insurer, then they are fully deductible, while any benefit received by group members is tax free.

RELATED TERMS
  1. Universal Health Care Coverage

    An organized healthcare system that provides healthcare benefits ...
  2. Group Universal Life Policy - GULP

    Universal life insurance that is offered to on a group basis, ...
  3. Capitation Payments

    Payments agreed upon in a capitation contract by a health insurance ...
  4. Preferred Provider Organization ...

    A type of health insurance arrangement that allows plan participants ...
  5. Group Term Life Insurance

    A type of insurance coverage offered to a group of people. This ...
  6. Accident And Health Benefits

    Fringe benefits provided to employees for sickness, accidental ...
Related Articles
  1. Considerations For Long-Term Care Coverage ...
    Options & Futures

    Considerations For Long-Term Care Coverage ...

  2. What's The Difference Between Medicare ...
    Options & Futures

    What's The Difference Between Medicare ...

  3. Health Insurance Tips For College Students
    Insurance

    Health Insurance Tips For College Students

  4. What You Need To Know About Student ...
    Insurance

    What You Need To Know About Student ...

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center