Who does group health insurance typically cover?

Group health insurance is designed to provide coverage to individuals who are part of a specific group, typically connected through a common employer or organization. This type of insurance aggregates risk across a larger number of participants, allowing for potentially lower premiums compared to individual policies. Coverage usually extends to employees and, in many cases, their dependents as well.

The focus on individuals working for the same employer emphasizes the principle of risk pooling, which is central to group insurance. By grouping members who share a common employment relationship, insurers can spread the financial risk associated with healthcare costs more evenly, leading to more stable premium rates for the entire group.

While group health insurance may include a minimum number of participants, such as 75 or 100 people, the fundamental characteristic of group health insurance is its basis on employment status and the affiliation with a particular employer or organization. Individuals without dependents do not define the coverage scope, as dependents can often be included in group plans. Hence, the primary aspect of group health insurance is that it covers people connected through the same employer.