Which would be a valid example of a group health benefits policyholder in a typical group plan?

Which would be a valid example of a group health benefits policyholder in a typical group plan?

• A. Employee
• B. Dependent
• C. Employer
• D. Insurance company

Answer: (C)

In a typical group health plan, the policyholder is the employer (the sponsor of the group). The employer signs the contract with the insurer, receives the master policy, and is responsible for paying premiums and administering the plan (often through a plan administrator). Employees and their dependents are the individuals covered under that master policy; they receive certificates of coverage, but they are not the policyholders. The insurance company is the issuer of the policy, not the policyholder.

In a typical group health plan, the policyholder is the employer (the sponsor of the group). The employer signs the contract with the insurer, receives the master policy, and is responsible for paying premiums and administering the plan (often through a plan administrator). Employees and their dependents are the individuals covered under that master policy; they receive certificates of coverage, but they are not the policyholders. The insurance company is the issuer of the policy, not the policyholder.