How do deductibles under group major medical plans usually compare to those under individual health plans?

In the context of health insurance, deductibles refer to the amount of money that insured individuals must pay out-of-pocket before their insurance begins to cover costs. Generally, group major medical plans tend to offer lower deductibles compared to individual health plans. This is primarily because group plans are typically designed for a larger pool of participants, which spreads the risk among many individuals, leading to lower overall costs for each member.

On the other hand, individual health plans often have higher deductibles as a way to manage the risk for insurance companies. Insurers may set higher deductibles for individual plans to balance the costs of providing coverage for a smaller number of insured individuals, who may have varying health needs and risks. This higher deductible model can help keep premium costs lower for individual plans but comes at the expense of increased out-of-pocket expenses before benefits are paid.

In summary, the observation that individual health plans usually feature higher deductibles compared to those under group plans is accurate. This distinction is an important consideration when evaluating health insurance options, as it impacts both the affordability of the plan initially and the potential costs that individuals may face when seeking care.