Which method of obtaining health insurance involves a group of employees and their dependents being insured under one policy?

Group insurance is a method of obtaining health insurance in which a collective group of employees and their dependents is covered under a single policy. This approach typically allows for lower premiums compared to individual policies because the risk is spread across a larger group. The employer often pays part of the premium, which further reduces costs for employees. This type of insurance usually provides a range of benefits, including preventive care, emergency services, and prescription drugs, often with network restrictions for healthcare providers.

In contrast to personal insurance, which is purchased individually and based on the specific needs and health status of each person, group insurance is designed to cater to a collective demographic, thus allowing for simplified administration and increased bargaining power with insurers. Pre-paid health plans operate under different structures, often involving fixed costs for a range of services, while indemnity insurance typically focuses on reimbursement after medical services are utilized, without the collective bargaining benefits of group policies.