Difference between Group Insurance and Blanket Health Policies

Given the wide range of health insurance alternatives, it will be better for you to comprehend the distinctions between various insurance policies, including group insurance and blanket health policies. Each brings its pros and cons. Rest assured, though, that we can assist! At Insureguardian Insurance Agency, we know that selecting your company’s best health insurance strategy can be challenging and complicated.

Explaining Group Insurance and Blanket Health Policies

A group insurance policy: What is it? 

An employee-specific group, group insurance policy is available. It provides health benefits to your employees and any qualified spouses or dependant children. Additionally, it offers medical benefits to workers when they go to a hospital, doctor’s office, or other healthcare facility. A group health insurance policy may include prescription drug coverage and other health and wellness benefits, such as savings on vision and dental care or buying life insurance.

A blanket health policy: What is it? 

Despite its name, blanket health policy coverage isn’t as broad as a group health insurance policy. In reality, it is typically an accident-only coverage offered to protect a group of people participating in a particular activity. For instance, to provide health benefits for athletes and cheerleaders, school districts, colleges and institutions, and sports teams might acquire Blanket Health coverage.

Participants in (or staff of) ongoing or one-time events or camps, civic, non-profit, or religious organizations may also be given access to these policies. A Blanket Health coverage may pay for medical care for volunteer firefighters who sustain an accidental injury while performing their duties as firefighters.

Read more about how Group Insurance and Blanket Health Policies Vary. 

A Group Health insurance policy, particularly one that includes the Essential Health Benefits (EHBs) required by the Affordable Care Act (ACA), does not own a dollar cap on how much it will pay for the care received by you and your employees. At the same time, you are covered, unlike a Blanket Health insurance policy.

It is technically against the law for health insurers to cap your annual or lifetime coverage costs for EHBs under a Group Health plan, according to the ACA. A group health insurance policy usually covers the whole plan year or 12 months. A Group Health policy might be a better option for long-term coverage because a Blanket Health policy might have a shorter term.

Qualifications for Blanket Health Policies 

Compared to group health insurance plans, the eligibility requirements for blanket health policies are frequently more lenient. Typical prerequisites include: The policyholder must be a body or institution in charge of the occasion or activity, such as a university, volunteer group, or governing body. Participants in the blanket health insurance plan must be specifically identified; in some circumstances, this can include eventgoers, volunteers, or even immediate family members.

Instead of generic health coverage, as seen in group health insurance plans, the range is often offered for specific hazards or incidents described in the insurance policy.

Although eligibility rules for blanket health insurance plans may be laxer, it’s still vital to speak with the insurance provider or an insurance broker to ensure the project will fit the organization’s and its members’ unique needs.

Comparison of the Differences between Group Insurance and Blanket Health Policy Coverage

Group insurance and blanket health policy offer quite different levels of coverage. Plans for group health insurance are made to give employees and their qualified dependents complete health coverage. These policies frequently cover preventative care, hospitalization, medicines, and other medical services. For example, a volunteer fire brigade or a school jurisdictional unit, or a big group of participants or attendees are examples of organizations for whom blanket health insurance policies are intended to offer coverage for specific risks or incidents.

While blanket health insurance policies are better suited for circumstances where many people need coverage for particular risks or events, group health insurance plans provide more comprehensive coverage and protection for employees and their families. Group health insurance is typically seen as the preferable choice for businesses wishing to offer complete health care to their personnel.


In conclusion, choosing the best insurance plan for your company requires careful consideration of the distinctions between group health insurance and blanket health insurance. According to Taylor Advantages Insurance Agency, group health insurance plans generally provide employees and their families with more extensive coverage, customization possibilities, and advantages for most organizations.

Although a person can purchase blanket insurance, businesses should not. You may select the best health insurance plan to safeguard your employees and promote a healthy, happy workforce by carefully considering your organization’s unique demands, employee demographics, and financial limits.

Questions and Answers: 

One can have inquiries about health insurance. Following reading the material mentioned above, you could have particular questions that this section answers:

What distinguishes employee group health insurance from individual health insurance? 

The primary distinction between group and individual health insurance is sharing coverage among individuals connected by a predetermined condition. A personal health insurance plan, however, only covers the policyholder.

For a policyholder, is group health insurance less expensive than individual health insurance?

If purchased by the employer, a Corporate or Employee Group health insurance plan may be less expensive. When opposed to individual health insurance, alternative group plans, such as family health insurance, might be more costly because additional people are covered in addition to the policyholder.

What benefits do group health insurance plans offer?

A group health insurance plan is very beneficial to acquire the employee and their family an essential financial safety net against medical emergencies. The insured can still benefit from insurance coverage without paying a premium. Some businesses allow customers to purchase top-ups that raise the covered amount. These are group health insurance’s key benefits.

What benefits come with a personal health insurance policy?

An individual health insurance plan can give the insured person complete coverage for various medical issues. The choice of which policy to purchase and from which insurance provider is entirely up to the policyholder. Additionally, if no claims are filed for a specific policy period, the policyholder might benefit from discounts like the No Claim Bonus. The benefits of individual health insurance plans are as follows.

What does a calculator for health insurance premiums do?

Using a premium calculator, you can determine how much money you must spend on health insurance. Numerous premium calculators are available online. These days, insurance companies include such technologies in the buying process. Enter a few informational pieces about you and the plan you’re interested in, and the premium calculator will provide you with a price for the best possible coverage.

What generally are excluded under both group and individual health insurance policies? 

Corrective dental and aesthetic procedures are typically not covered (unless required due to an accident). Treatment costs for self-harm, criminal activity-related injuries, war-related injuries, drunkenness-related injuries, etc., are not reimbursed.