Private Insurance (CONT.)

Information on Small Group Plans, Large Group Plans, and COBRA  

Small group policies
Small group policies are available to small businesses with 2 to 49 employees who meet certain requirements. They tend to be less expensive than individual plans, although prices are quickly rising. If you work for a small business that doesn't provide health benefits, you may want to talk to your employer about buying small group coverage for the business. A 1999 survey of Maine small businesses found that about 68% of small businesses offer a health insurance plan to at least some of their employees. However, the ability of workers to buy the coverage offered by their employer is declining because many employers cannot afford to pay the full amount for coverage. Employees, especially those in smaller firms that pay lower wages, cannot afford to contribute to the costs of their coverage. You can get more information about Small Group Coverage from the Maine Bureau of Insurance at 1-800-300-5000.

Large group coverage
Large group coverage is available to employers that have 50 or more workers. It is generally the most affordable coverage for workers, although costs are quickly rising. Many companies with large group plans are "self-insured" which means they assume the risk and pay claims themselves. You can get more information from the Bureau of Insurance (1-800-300-5000)

COBRA
If you had health insurance through an employer with more than 20 employees, you may be eligible for a federal program known as COBRA that guarantees continued insurance coverage, including any medical condition previously covered. COBRA lasts at least 18 months, and in some instances for three years. Your employer is required to notify you if you are eligible, and you have two months to decide whether to participate. If you use this program, though, you are limited to the plan your employer offered, which may not be affordable if you are out of work or find a job without its own insurance plan. In COBRA, you are responsible for the full cost of the insurance, which could cost anywhere from a few hundred dollars to over $1,000 a month, depending on the type of coverage and number of family members covered.

Download a brochure from the US Department of Labor on COBRA coverage (Adobe Acrobat Required) Also, there is a fairly well-written article on COBRA at insure.com )

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