Group Health Insurance

A type of health insurance plan provided by an employer of a member organization is called group health insurance. A group health insurance plan's participants often pay less for coverage since the insurer's risk is spread out among several people.

Businesses with 50 or more full-time employees are required by the Affordable Care Act (ACA) to offer health insurance to full-time employees and dependents under the age of 26 or face a penalty.  Additionally, insurers must offer group coverage to businesses with as low as two employees. Self-employed people may be eligible for group insurance policies in several states as well.


Companies or other organizations choose and purchase group health insurance plans, which are subsequently made available to employees. The majority of states require a group insurance plan to have a 70% participation rate, however some states have higher or lower requirements.