Group Insurance
Most Americans get health insurance through
their jobs or are covered because a family member has insurance at work.
This is called group insurance. Group insurance is generally the least
expensive kind. In many cases, the employer pays part or all of the
cost.
Some employers offer only one health insurance
plan. Some offer a choice of plans: a fee-for-service plan, a health
maintenance organization (HMO), or a preferred provider organization
(PPO), for example. Employers with 25 or more workers are required by
Federal law to offer employees the chance to enroll in an HMO.
What happens if you or your family member
leaves the job? You will lose your employer- supported group coverage.
It may be possible to keep the same policy, but you will have to pay
for it yourself. This will certainly cost you more than group coverage
for the same, or less, protection.
A Federal law makes it possible for most
people to continue their group health coverage for a period of time.
Called COBRA (for the Consolidated Omnibus Budget Reconciliation Act
of 1985), the law requires that if you work for a business of 20 or
more employees and leave your job or are laid off, you can continue
to get health coverage for at least 18 months. You will be charged a
higher premium than when you were working.
You also will be able to get insurance
under COBRA if your spouse was covered but now you are widowed or divorced.
If you were covered under your parents' group plan while you were in
school, you also can continue in the plan for up to 18 months under
COBRA until you find a job that offers you your own health insurance.
Not all employers offer health insurance.
You might find this to be the case with your job, especially if you
work for a small business or work part-time. If your employer does not
offer health insurance, you might be able to get group insurance through
membership in a labor union, professional association, club, or other
organization. Many organizations offer health insurance plans to members.
