Many American workers decide to join a group healthcare association in order to limit the costs of their insurance policies while obtaining as much coverage as possible. Group healthcare is nothing new, but it's a powerful tool for getting reasonably-priced coverage. These health insurance plans often provide the same types of coverage as private or employer-sponsored plans at reduced rates. Understanding the benefits of group plans is important when purchasing a policy, especially for workers who may be eligible for a group plan through a trade group or other organization.

Group healthcare associations are mainly beneficial in that they are able to negotiate lower-than-average rates for their members. Just as buying in bulk allows for lower costs on household goods, buying bulk health insurance policies allows for lower cost health insurance plans. Groups may also work to represent their workers, which mean better overall treatment, faster claims processing and other notable benefits. Group healthcare associations exist for almost every conceivable profession, including many independent contractor occupations in which a group policy (which would usually be purchased through an employer) would be otherwise impossible to obtain. However, group policies aren't limited to contractors–workers with full-time jobs can still look for group healthcare policies, and in many cases, group policies can offer better benefits from what a smaller employer could provide.

It may also be easy to keep group coverage. Thanks to COBRA legislation, health insurance plans offered through a group may be kept for up to 36 months after a group member has left a job. Depending on the group, health insurance might be available for even longer after the worker has left his or her former profession. However, there are a few drawbacks to group policies; they may not offer patients as many options as private health insurance plans, for instance. Many group policies work through HMOs or other limited-choice alternatives and offer little in the way of physician or hospital choice. In addition, gaining admission to some group health insurance policies can be difficult, particularly in some skilled independent contractor professions. Union membership may be required in some instances, so workers should be careful to read about the requirements of different group plans.

Workers should consider private, group and employer-provided options when looking for health insurance. Looking at all possible health insurance plans is the best way to learn about the different options, how they provide care, and how they set their insurance rates. Group healthcare can be a great option for many workers, as there are many benefits to this type of policy, but careful comparison is essential to finding good protection at a reasonable cost.