What distinguishes individual health insurance from group health insurance?

Individual health insurance and group health insurance serve different primary purposes and target different markets. The distinction lies in the structure and how they are acquired.

Group health insurance is typically offered through an employer or organization, covering multiple individuals under a single policy. This type of insurance is often more cost-effective for employees because the employer usually contributes to the premium costs, which can lead to lower rates compared to individual plans. Additionally, group policies often provide more extensive coverage and fewer health-related barriers to entry since they generally do not require medical underwriting.

In contrast, individual health insurance is designed for one person and must be purchased directly from an insurance provider. This means individuals must apply for coverage on their own, and premiums can vary greatly based on the individual's health status, age, and other factors. Individual plans often provide more personalized options but can be more expensive and might have limitations when it comes to coverage compared to group plans.

The other options do not precisely capture the core difference effectively. For instance, individual insurance is not purchased by multiple people, and it's not inherently true that individual plans provide less coverage; rather, the coverage largely depends on the specific policies compared. While group insurance can sometimes have higher premiums, it is more common for it to have lower premiums due