History About Health&Group Insurance

Health insurance:

It Started in 1930 in America provided by employer first.This was was originated by Blue Cross Hospital.Then H.J. Kaiser offered prepaid group health insurance plan to employees of his construction company.


Group insurance:

Term used as the combination of the pool of people who are healthy and adds few who require costly medical aid. Thus pool of large number accounts for balancing the expenditure of few people, who actually need them. This phenomenon makes group insurance viable and beneficial for both employer as well as employees. Health insurance through employer also provides significant tax benefits to both.In health insurance plans provided by employer where total premium is borne by him is generally cheaper, compared to plans if purchased by employee himself.
This plan has many disadvantages workers are unable to pay their portion of premium for policies provided by their employers. In case of lay-off or relinquishing service means loosing health coverage for self and family. Circumstances like change in type of job retirement or divorce can lead to cut in the group health insurance sponsored by employer.