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Employers are in a unique position to offer group health plans. This used to be more relevant before Obamacare and is becoming relevant again. There is no equiv

• phkahler 9y ago
  Another problem with "group plans" is that large companies are actually self-insured. The insurance provider is just handling the paperwork, but you are part of a group of people separate from other plans and the employer is on the hook to cover all costs (it's not always what the actuary predicts). The advantage is that working people are generally healthier than the average, so this results in lower costs vs plans that cover the general public. The purpose of insurance is to amortize the cost of unpredictable things across time and population. Group plans are just another way to select higher quality (lower cost) people for the plan. Of course this means higher than average cost for programs like medicare.