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Chapter FourGroup health insurance results in lower premiums for subscribers for several reasons. Small businesses can get group health insurance for their employees which lowers the costs for these employees. One reason why premium costs are lower is that a larger number of people means lower risk for the insurance company—group health insurance cover between one and 50 people, and the more people, the better for them. The premiums are also lower because both employers and employees contribute to the insurance plan, meaning shared costs between the two and reduced premiums for employees. One of the most critical variables in choosing a family insurance plan is the costs. An example of such costs is the minimum cost which one has to pay even when they do not visit the hospital. Another cost is the guaranteed cost, which is the out-of-pocket payments that one makes after a visit to the hospital.

Medicaid and Medicare are both federal programs that provide healthcare to vulnerable populations in the country, but there are some differences in how they work and the people they serve. Medicare covers all citizens over the age of 65, as well as those who might be younger but have some disabilities. Medicare differs from Medicaid in that it covers all who fall in this category regardless of income. On the other hand, Medicaid covers low-income individuals. When a person is eligible for both of these programs, they can use both of them for health coverage, although there are some differences in the types of services offered under each and the cost-sharing methods.