Who is the contract between in a group health insurance policy?

In a group health insurance policy, the contract is established between the employer and the insurance company. This is because the employer typically negotiates the terms of the health insurance plan on behalf of its employees and pays the premiums. The insurance company, in turn, provides coverage to eligible employees and their dependents as stipulated in the group policy. The employees are often considered insured individuals under this contract but do not have a direct contractual relationship with the insurance company. Instead, their coverage is a benefit provided through the employer's agreements with the insurer.

This arrangement benefits both the employer and the employees, as it allows for group purchasing power which can often result in lower premiums and better coverage options compared to individual health insurance plans.