State RegulationsVA specificDifficulty 2/5
A new employee arrives with 14 months of prior employer health coverage and joins a Virginia plan that imposes a preexisting-condition exclusion. Under Virginia's codified portability provisions, what effect does her prior coverage have?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Virginia's codified portability provisions at Va. Code § 38.2-3430.1 and the related sections, an individual's prior creditable coverage — including employer group coverage — counts against any preexisting-condition exclusion the new plan may apply. The months of prior coverage offset the exclusion period, and a certificate of creditable coverage documents the history so the new plan can apply the credit. The practical effect is that changing health coverage in Virginia does not restart the preexisting clock from zero, a rule administered under Virginia authority.
Why the other options are wrong
- A) Disregarding prior coverage entirely contradicts the portability rule codified at Va. Code § 38.2-3430.1, which requires credit for prior creditable coverage.
- C) Employer group coverage is squarely creditable coverage; the credit does not depend on buying an individual policy.
- D) Nothing in Virginia's portability provisions penalizes a plan change by lengthening the preexisting exclusion; prior coverage shortens it.
Memory hook
Old coverage chips away at the new plan's preexisting wait — carry the certificate.