Principles of Risk Management and Insurance, 13th Edition

Group Medical Expense Insurance

Group medical expense insurance is an employee benefit that pays the cost of hospital care, physicians’ and surgeons’ fees, prescription drugs, and related medical expenses. These plans are extremely important in providing economic security to employees and their families. Most insured workers today obtain their coverage through employer-sponsored medical expense plans.

Group medical expense coverage is available from several providers, including the following:

• Commercial insurers

• Blue Cross and Blue Shield plans

• Managed care organizations (some of which are offered by commercial insurers and Blue Cross Blue Shield plans)

• Self-insured employer plans (some of which are administered by commercial insurers and Blue ...