Individuals who have health insurance are most likely included on their employer's group health insurance plan. When an individual is terminated or seeks another job their insurance coverage can continue in certain situations. This is because of various state and federal laws that regulate the continuation of health insurance for individuals who have lost their jobs. These laws generally only apply to group health insurance that is provided by an employer and not self-insured employers.
COBRA
The Consolidated Omnibus Budget Reconciliation Act of 1986 or COBRA is a federal law that provides for the continuation of group health insurance. This applies to an individual who has lost his job as well as certain dependents of a covered worker. A person who loses his job can choose to continue on his former employer's group health care plan for up to 18 months. A dependent can receive coverage for up to 36 months if a worker experiences a life event such as divorce or death.
HIPAA
The Health Insurance Portability and Accountability Act of 1996 is another federal law that regulates the continuation of health insurance in certain situations. The law allows people who change jobs or health plans not to be subject to any type of waiting period if they had previous continuous health coverage with another employer. If a lapse of insurance coverage exists for more than 63 days a new waiting period can be imposed.
New Jersey Continuation Laws
The state of New Jersey has a law that is known as the "18 to 30 Bill" that extends the age of which a young adult can stay covered on her parent's health insurance policy. The law was passed to provide coverage until young adults could obtain health insurance coverage on their own. The law requires insurers to continue coverage on a parent's health insurance plan for a dependent who is unmarried up to age thirty.
Illinois Continuation Laws
Illinois has three health insurance continuation laws that are similar to COBRA but provide more benefits to employees, dependents and spouses. There is the Illinois Continuation Law, the Illinois Spousal Continuation Law and the Illinois Dependent Continuation Law. Each law stipulates that coverage for health insurance will be provided when a qualifying event has occurred. This can include termination of employment, divorce or the death of a covered worker.
Wisconsin Continuation Laws
The continuation law in the state of Wisconsin applies to all group polices from employers of any size but does not apply to employer self-funded plans. This law gives an individual the right to continue on an employer's group health insurance plan if he has had continuous coverage for at least three months. This law also applies to a divorced spouse and a dependent of a covered worker who has died. In the state of Wisconsin if federal law and state law differ for health insurance the most favorable law to the insured normally applies.
Tags: health insurance, group health, health insurance, group health insurance, covered worker
