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Health Insurance Continuation Program
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Posted On :
Jun-12-2010
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Article Word Count :
503
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There are 2 laws that govern the portability as well as continuation of employers provided benefits of health insurance.
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The New Jersey health insurance policies such as health insurance continuation laws are one of the major elements that take care of the high expenditures that are necessitated by health care at present.The issue is something to be concerned of as far as the dependents on covered workers, unemployed individuals, retirees and job changers are present.The category also includes the retired individuals who are not entitled to employers’benefits any longer.
In such a situation, the various programs of New Jersey health insurance seek to help out the employers’ health insurance benefits. The Health Insurance Continuation Program also offers solutions for those who are going through the job lock phase, a situation where workers having previously existing medical or health conditions feel that they should stay employed in a certain job lest they lose employers’ based coverage benefits.
There are 2 laws that govern the portability as well as continuation of employers provided benefits of health insurance. They are: the COBRA or Consolidated Omnibus Budget Reconciliation Act 1986 and the HIPAA or Health Insurance Portability and Accountability Act 1996.As each of the laws has its own set of benefits,they don’t offer insurance by themselves, like the young adults who have crossed their parents’ benefits and COBRA entitlements.
These plans do not lower the amount that is covered by the health insurance premiums.The other significant New Jersey health insurance legislation had been passed in May 2006 which allows unmarried children who are adults remain dependents on their parents’ health or medical insurance plan, right up to the age of 30 years.
COBRA:The aim of the COBRA legislation is to afford continual group medical health insurance at a premium of near about 102% of the costs for about 1.5 years for terminated workers or 9 years for the dependents of the covered employees who have lost coverage through life changing events such as divorce or widowhood. The terms of the coverage are specified voluntarily under required time limits.About 20% of the policy holders who are eligible for their COBRA entitlements prefer being on the health plans of their previous employers.
HIPAA: The objective of this health legislation is to ensure that the holders of health insurance programs in New Jersey offer workers as well as deserving family members pre-existing conditions as well as guaranteed medical coverage for immediate effect.This is provided the health insurance plan of the employee for a period of 12 months minimum with their previous employer.
HIPAA aims to gulf the job lock situation and thus reduce the risks associated with health coverage when someone changes employers. In this law, eligible workers making job shifts are not put through a waiting period for covering the medical costs which someone with a pre existing medical condition would be subject to.
There’s also a health insurance law in New Jersey that covers dependents aged below 30 years.It expands the age of dependency for family medical insurance for making it beneficial for young adults who age out their parents.
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Article Source :
http://www.articleseen.com/Article_Health Insurance Continuation Program_21937.aspx
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Author Resource :
The new jersey health insurance policies may be cost effective in nature and it is best to have your health insured, should you require the services. For more information about new jersey health insurance, please visit our website.
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Keywords :
new jersey health insurance,
Category :
Finance
:
Insurance
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