Group Health Insurance Information

If you work for a company, there's a good chance you obtain your health insurance coverage through your employer. If so, you are probably enrolled in some type of group health insurance plan. Group health insurance coverage is available for groups of all sizes. The types of plans available can vary greatly, as can their costs to you and your employer.

Identification

• Group health insurance is health coverage made available to members of an organization, most often an employer. A group can consist of as few as two people, although some states allow a self-employed individual to be considered as a group for insurance purposes. Employers offer group health insurance as an employee benefit to attract and retain employees, with larger companies usually offering more plan choices than smaller companies. Larger companies may also be able to afford to contribute more to the costs of the insurance coverage.

Plan Types

• A number of different group plans may be offered by an employer. Companies with 50 employees or fewer can often find an insurer who is willing to pool the employees of several similar-sized companies to provide affordable, comprehensive coverage. Larger companies may offer a choice between several plans, including health maintenance organizations and preferred provider organizations that require the employee to receive care from providers who are part of a network. A traditional fee-for-services plan may also be available.

Benefits

• Group health insurance is usually less expensive than policies purchased on the individual market. Insurers base their group rates on the characteristics of the group as a whole instead of each individual. In general, the larger the group, the more ability the insurer has to spread the risk over the entire group, which usually means lower premiums. Members of a group cannot be denied coverage due to their health history, although some limitations may apply for pre-existing conditions.

Continuing Coverage

• If you leave your employer, either voluntarily or involuntarily, you have the right to continue your group coverage for a specific amount of time. Under the federal COBRA law, you can continue your coverage for up to 18 months, or up to 36 months in some situations, after your employment ends. However, you will need to begin paying any portion of your premium that had been previously paid by your employer. This can help you bridge the gap until you can find a new job or new coverage.