The Health Insurance Portability and Accountability Act of 1996 is important to those with pre-existing conditions or those who may be in danger of losing health coverage.
Although there is still room for improvement, HIPAA guarantees your right to maintain coverage if you move, change jobs, get divorced, or become pregnant.
HIPAA plans are meant to provide temporary health insurance while you are in between jobs.
These plans might also be called "guaranteed issue," or "federally insured" plans.
If you are ineligible for any other form of coverage, federal law guarantees that you can purchase one of these plans as long as you meet the criteria.
The availability of HIPAA plans varies depending on the state.
Some states require all insurance providers to offer this type of insurance, while others only have one insurer that provides a HIPAA plan.
You should not expect to pay the same premiums or receive the same benefits as your previous health insurance, however, even if your insurer is the same.
This type of plan may not be the best option for everyone.
If you are offered the chance to enroll in a conversion plan after losing your group health insurance, weigh the benefits of each carefully before you make your decision.
To qualify for any of the available HIPAA plans, you must meet a few specific criteria.
First of all, you must have been insured for at least 18 months before losing health insurance.
Your last insurance plan must have been employer-sponsored, and you must have used up all COBRA coverage if you were eligible.
Any gaps in coverage must be less than 63 days long.
If you meet the criteria, talk to your old insurance company to get a Certificate of Creditable Coverage.
You will be able to show this as proof of your eligibility.
Like employer-sponsored plans, HIPAA plans do not discriminate based on medical history.
If you have a pre-existing medical condition and are worried about finding new health insurance, enroll in a HIPAA plan as soon as you can to avoid losing coverage.
You will not have to put up with pre-existing condition exclusion periods if you find new insurance as long as you make sure to have continuous health insurance coverage.
Again, a HIPAA plan may not be right for everyone, especially those who have other options.
Research the laws in your state and talk to insurers before you decide.