People in California can opt for group, individual or Medicare health insurance plans depending upon their eligibility and requirement. People may purchase Individual health insurance plans to cover them in case of any major medical expense. Some employers purchase Group health insurance plans for business employees to provide coverage for many people, as well as medical expenses for their families. Individual health insurance is more expensive than group health insurance. Employers pay group health insurance premiums, however, certain insurance schemes may require part contribution by employees.
Another type of health insurance plan is COBRA plan or Consolidated Omnibus Budget Reconciliation Act passed by congress in 1986. Cal-COBRA plan has similar provisions to those in federal COBRA. Some people may prefer this plan as it is cheaper than individual health insurance but has a higher premium than group health insurance plan. The COBRA plan includes certain former employees, retirees, spouses, former spouses, and dependent children as also temporary continuation of health coverage at group rates. Group policy obtained under Cal-COBRA may cover two to nineteen employees, covered at at least fifty percent of working days. Employers do not contribute towards premium of this plan and COBRA participants generally pay the entire premium by themselves.
Generally health insurance plans do not cover the entire cost of treatment. It shares towards a share of the cost dependent upon agreement. It is advisable to purchase a group health insurance plan that covers the whole family, as it proves to be cost effective in the long run.