Which statement about group health insurance is true?

Group health insurance is typically less expensive than individual health insurance because the risk is spread among a larger pool of insured individuals. When many people are part of a group plan, the insurance company can predict costs more accurately and often negotiates lower premium rates due to the volume of policies. This distribution of risk tends to lower the overall cost for enrollees compared to individual plans, where the insurer bears the risk of one person or family. Moreover, group policies typically involve shared contributions from both the employer and employees, further lowering individual costs.

In contrast, because the risks in group plans are pooled, individual premiums are usually higher, reflecting a less predictable risk for single policyholders. Additionally, while group plans generally provide a standard set of benefits, they can vary in comprehensiveness but are commonly designed to cover essential health needs effectively without being tailored to individual preferences like many individual plans.