What role does the insurer play in a group health insurance plan?

In a group health insurance plan, the insurer primarily provides coverage to the group as a whole rather than to individual members. This approach allows for a more streamlined application process and often results in lower premiums for group members, since the risk is spread across all individuals in the group.

In these plans, the employer or organization usually acts as the policyholder and manages the relationship with the insurer, while employees or members receive coverage under this master policy. The insurer assesses the risk based on the entire group rather than on individual applications, which can lead to increased access to healthcare benefits for members of that group.

This structure is significantly different from individual health insurance policies, where the insurer collects premiums and underwrites coverage based on personal health information of each insured. By covering the group as a whole, insurers can also provide more comprehensive features and benefits that may not be as financially feasible in an individual context.