Question
1. What makes an employer-sponsored plan so convenient? 2. What are the common financial benefits of using your work's group plan for insurance? 3. Describe reasons why someone might choose to buy an individual health insurance plan instead of going through an employers ponsored plan.
Answer
3.8
(300 Votes)
Jesse
Master · Tutor for 5 years
Answer
1. An employer-sponsored plan is so convenient because the employer handles the bulk of the administrative work, and the plan covers all participating employees.2. Common financial benefits of using your work's group plan for insurance include cost-effectiveness, potential lower out of pocket expenses, tax benefits, and easier access to coverage for family members.3. Someone might choose to buy an individual health insurance plan instead of going through an employer-sponsored plan for reasons like customization, addressing pre-existing conditions, accessing specific medical services not available with the employer's plane, or obtaining tax benefits.
Explanation
1. An employer-sponsored plan is primarily convenient due its oneness. Essentially, employers create a single insurance plan that covers all interested employees, thereby simplifying the process of obtaining insurance. Rather than requiring each individual employee to source and setup their own insurance policy, an employer will do the bulk of this administration centrally.2. The common financial benefits of using your work's group plan for insurance could be cost-effectiveness because the risk is spread across a number of individuals (employees). These plans sometimes come with tax benefits. Companies often pay part of the premiums, resulting in lower out-of-pocket costs for individuals. Also, group coverage often extend to family members e.g., spouses and children underscoring added advantage.3. The reasons as to way someone might choose to buy an individual health insurance plan instead of relying on an employer’s sponsored plan might fundamentally be down to the broader level of choice and flexibility. It could be that the coverage offered by their employer does not meet their individual or family's health need. Or possibly they might have a pre-existing condition that isn't satisfactorily covered by the employer's plan. In addition, they could potentially gain tax benefits that they wouldn't have gained through their employer's plan.