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What are the benefits of employer-sponsored group health plans?

In the US, the vast majority of people under the age of 65 who have health insurance obtain coverage through employer-sponsored group health plans -- either from their own job or through that of a family member. There are several reasons why group health plan coverage is so prevalent and popular:
  • Covered benefits under employer-sponsored group health plans tend to be comprehensive, including prescription drug benefits and relatively low cost sharing;
  • Coverage is subsidized because employers tend to pay most of the premium and because employer-sponsored health benefits enjoy federal income tax subsidies;
  • Employer-sponsored group health plan coverage is subject to far greater consumer protections under federal and state law.

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Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.