Which statement is true regarding group health insurance plans?

Group health insurance plans typically provide coverage to a collective group, such as employees of a company, and are designed to be more affordable than individual health insurance policies. This cost-effectiveness arises from the risk being spread across a larger number of individuals, which often leads to lower premiums per person compared to what individuals would pay for standalone coverage. Additionally, group plans can negotiate rates based on the larger pool of covered members, making them generally less expensive on a per capita basis.

The other options may have their merits but do not reflect the defining characteristic of group health insurance. Individual risk coverage, portability upon termination, and requirements for a minimum number of employees can vary widely depending on specific policy terms, state regulations, and employer offerings. However, the overarching principle of cost savings for group plans remains a central feature that stands out clearly.