Group health plan

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What is a group health plan?

A group health plan is a health insurance plan offered to employees as a job benefit. The group health plan is established or maintained by an employer or by an employee organization (such as a union). It is also known as employer provided health insurance.

The group health plan may be completely or partially subsidized by the employer.

Since employers are able to negotiate better rates from health insurance companies than individuals, group health plans typically have lower monthly premiums than those of individual health plans.