Where Coverage Comes From
There are two ways you can be covered for health insurance. The most common is group coverage. This means that an organization or commonality you share with a number of other people places you under the same health insurance plan; 60% of Americans are insured with group coverage. Most of the time it is as a result of being employed somewhere, but it can also be from a professionals association or other formal organization. Group coverage usually extends to your entire family and is comprehensive. Depending on where you work, your employer might offer either one plan to all employees or give you the option of choosing from a number of plans. Coverage from your workplace ends if you are fired, laid off or quit. However, it is possible to retain your health insurance through COBRA (for the Consolidated Omnibus Budget Reconciliation Act of 1985). This allows you to keep the same plan for up to 18 months, though you will probably pay higher monthly premiums and might see a reduction of benefits and coverage.
Individual coverage is for those individuals whose employer doesn’t offer health insurance coverage or who are self-employed. If you are dissatisfied with the benefits of your workplace’s health insurance, you can buy your own individual policy. There are many options when selecting an individual plan, and if you have to buy your own health insurance it is even more important to select the right plan for you and your family.
The Council for Affordable Health Insurance is a proponent for making health insurance less costly and accessible to everyone.