Health · Chapter 14 · Group Health
Group Health Insurance Basics
Definition
One master contract issued to a sponsor (the master policy owner); members get certificates of insurance. Requires a natural group (existing for a purpose other than insurance) with a state-set minimum (often 2 for small medical plans). No individual underwriting; benefits broader and cheaper than individual policies thanks to consolidated administration, predetermined benefits, and persistency.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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