How does group health insurance differ from individual health insurance?

Group health insurance is characterized by being offered through employers or other organizations, which allows groups of people to secure health coverage collectively. This setup provides several advantages, such as typically lower premiums due to the spread of risk among a larger pool of insured individuals. In contrast, individual health insurance is purchased directly by a single person who may not benefit from the same risk-sharing advantages. This distinction is crucial in understanding how these two types of insurance function within the health insurance marketplace.

The other statements are misleading. For instance, group insurance is often less expensive, not more costly, due to economies of scale. Medical exams may not be required for group insurance, while they often are for individual policies, particularly for those seeking coverage with pre-existing conditions. Finally, there are usually differences in coverage options and benefits between group and individual plans, further distinguishing the two.