Business & Groups

Group health insurance is employer-sponsored health coverage for business owners, employees and often for dependents.  A majority of Americans have group health coverage through their own or a family member’s employer-sponsored group plan. Employers and employees can share costs and there are special tax incentives available to businesses that provide group health insurance.

Voluntary benefits are additional insurance benefits that an employer may be offer to employees as a supplement to enhance the core employer-sponsored health plan.  When an employee chooses one of these benefits, they pay the cost often through a payroll-deduction plan.

What is COBRA continuation coverage?

The Consolidated Omnibus Budget Reconciliation Act (COBRA)
requires most group health plans to provide a temporary continuation of
group health coverage that otherwise might be terminated.

COBRA requires continuation coverage to be offered to covered
employees, their spouses, their former spouses, and their dependent
children when group health coverage would otherwise be lost due
to certain specific events. Those events include the death of a
covered employee, termination or reduction in the hours of a covered
employee’s employment for reasons other than gross misconduct,
divorce or legal separation from a covered employee, a covered
employee’s becoming entitled to Medicare, and a child’s loss of
dependent status (and therefore coverage) under the plan.

Employers may require individuals who elect continuation coverage
to pay the full cost of the coverage, plus a 2 percent administrative
charge.