HIPAA

Be reduced by prior creditable coverage the employee had under the old plan — HIPAA's portability rules address the job-lock problem by requiring group plans to credit employees for prior continuous coverage. Creditable coverage, previous employer coverage, COBRA, and other qualifying coverage, reduces any pre-existing condition exclusion by the amount of prior coverage, provided the gap between plans does not exceed the statutory limit. This lets workers change jobs without losing protection. HIPAA is among the federal laws listed in the California A&H objectives affecting group medical plans.

National insurance concept

HIPAA limits the use of pre-existing condition exclusions and guarantees renewability of group coverage — The portability protections of the Health Insurance Portability and Accountability Act (HIPAA) restrict how group plans use pre-existing condition exclusions, prohibit discrimination against individuals based on health status, and guarantee the renewability of group coverage. HIPAA was designed so that people changing jobs would not be locked out of coverage by their medical histories. It does not require employers to offer coverage, does not set premium rates, and preserves state regulation of the business of insurance. Under HIPAA, an individual moving between group plans receives credit for prior creditable coverage, which reduces any new pre-existing condition exclusion the new plan could otherwise impose.

National insurance concept