What is one key difference between individual and group health insurance?

The key distinction between individual and group health insurance lies in the composition of the policyholders. Individual insurance is designed for a single person and is purchased specifically to cater to the healthcare needs of that individual. This type of policy requires the individual to go through underwriting, where their personal health history, age, and other factors are evaluated to determine eligibility and premium rates.

On the other hand, group insurance is structured to cover a collective group of individuals, such as employees of a company or members of an organization. The policy is typically negotiated by the employer or group leader and offers coverage to all eligible members, often without individual underwriting. This can result in lower premium costs per person compared to individual insurance, as the risk is spread across a larger pool of insured individuals.

Understanding this difference helps clarify how health insurance can be accessed and purchased, and it highlights the nature of the coverage offered within each type.