What does "group health insurance" refer to?

Group health insurance refers to a type of insurance plan that is typically offered by employers or organizations to cover a group of individuals, usually employees and their eligible dependents. This type of insurance allows for the sharing of risk among a larger pool of insured individuals, which generally results in lower premium costs compared to individual policies.

The employer usually pays a portion of the premium, and the employees may have the option to contribute to the cost through payroll deductions. Group health insurance provides important benefits, including access to preventive care, hospitalization, and prescription drugs, among others, and is designed to ensure that employees have access to healthcare coverage at a more economical rate.

Other options do not accurately define group health insurance. For instance, insurance provided by individuals to their families constitutes individual health insurance rather than group insurance. Similarly, coverage specifically for independent contractors does not relate to group coverage, as it is intended for self-employed individuals rather than a group under a single policy. Lastly, insurance that covers only a single member of a family represents individual coverage, emphasizing the distinction between individual and group health plans. Thus, the correct choice reflects the essence of group health insurance as a collaborative insurance product that supports multiple individuals through a single policy.