Employer Group Health Plan (EGHP)

Employer Group Health Plan (EGHP)

This group of plans can refer to two different types of coverage. For those that are still employed, it refers to the health insurance that a person has with their employer. For those that are retired, it refers to the continuation or conversion health insurance policy offered as a retirement benefit.

EGHPs vary from company to company. They may offer additional benefits beyond Medicare covered services, such as prescription drugs. They have no health underwriting or waiting periods. Your employer might pay some of your premium and family members might be eligible.

On the other hand, you should look at the premium costs; they may be expensive. If you are responsible for the entire cost, it may be more cost-effective to use a different type of supplement.

Some Employer Group Health Plans limit how long you are allowed to continue coverage. You should also look to see how well your EGHP fills in Medicare gaps.

If you have an EGHP but lose your job or have your hours reduced, you may qualify for COBRA coverage.