Group health
In a group health plan, the employer typically pays a large
share of the premium, so most employees sign up as
soon as they are eligible, regardless of their health status.
The health plan covers a mix of sick and healthy workers.
By contrast, individuals and independent contractors are
more likely to defer coverage until they need it, so the pool
of people insured is, over all, less healthy. Sick people
consume more health care. As a result, the cost to insure
them is higher.
Janet S. Trautwein, executive vice president of the National Association
of Health Underwriters, which represents insurance agents and brokers.