HIPAA Act

by Ben Bontekoe

Overview

One of the important considerations faced when deciding whether to change jobs is if you will be able to maintain your health insurance. The Health Insurance Portability and Accountability Act (HIPAA) is designed to allow you to continue coverage if you get a new job.
Function

HIPAA ensures that a new group health insurance plan cannot deny you coverage based on a pre-existing condition. You cannot be denied coverage if your condition was covered under your old plan.

Features

HIPAA guarantees that your health coverage will continue uninterrupted. For example, if you require dialysis, your new insurance must pay for your treatment, even though it is a pre-existing condition.
Benefits

As long as you have "creditable" health coverage--including Medicare, Medicaid or another group plan--you are guaranteed enrollment in your new company's health plan under HIPAA.
Considerations

HIPAA rules apply to insurance plans covering at least two employees, meaning that self-employed individuals may not be covered. However, many states have decided to apply HIPAA to "groups of one."
Warning

Employers are not required to offer the same coverage as you currently have, or any coverage at all. Be sure that your new employer's plan meets your needs before changing jobs.

References & Resources