If Coverage Or Plans Change

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If you do not qualify for coverage under COBRA, consider short-term health insurance coverage. These plans are usually less expensive than an individual health plan and provide coverage for up to 6 months. You may also be able to convert your group health coverage to individual coverage.

For more information on COBRA, visit the U.S. Department of Labor Web site at www.dol.gov.

The Health Insurance Portability and Accountability Act of 1996 (HIPAA) protects you from losing health insurance coverage when you move from one plan to another. Before you leave a job, get a “certificate of creditable coverage” from your employer. This provides proof of your health coverage to your new employer and ensures your rights under HIPAA:

• If you have had health coverage for 12 continuous months and switch to a new group health plan, the new plan cannot limit coverage of pre-existing conditions.



• If you have not been covered for 12 months, a group health plan can deny coverage for pre-existing conditions, but only up to 12 months. The plan has to deduct any previous health coverage you had from the exclusion period.



• Group health plans cannot deny coverage based solely on your health status.

HIPAA does provide some protection from pre-existing exclusions for individuals buying individual health coverage, but the rules are stricter than for group health plans. To qualify, you:

• Must have had 18 months of continuous coverage under a group health plan.



• Must not be eligible for coverage under a group health plan, Medicare or Medicaid.



• Cannot have other health insurance.



• Must have used up all options for continued coverage, such as COBRA.



• Must not have had coverage canceled for nonpayment of premiums or fraud.