Which type of health insurance typically has lower premiums?

Group health insurance generally has lower premiums because it spreads the risk among a larger pool of individuals. In a group plan, the costs are shared among all members, which reduces the overall financial burden on each member. This approach often leads to lower administrative costs and more bargaining power with insurance providers, resulting in lower premiums compared to individual health insurance plans.

Additionally, group health plans often benefit from employer contributions, which can further reduce the employees' share of the premium. These plans also tend to cover a wider range of services and provide more comprehensive benefits, contributing to the overall cost-effectiveness.

Individual health insurance policies typically have higher premiums because they are underwritten based on the individual’s health status and other personal factors, leading to less risk pooling. Short-term health insurance, while lower in premium costs, often provides limited coverage and is not designed for long-term use. Lastly, catastrophic health insurance has a lower premium, but it is mainly intended to protect against very high costs, requiring individuals to pay more out-of-pocket expenses for routine care.