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Continuation Coverage in Medical Insurance Explained

What is Continuation Coverage and How Does it Work in Medical Insurance?

Continuation coverage refers to a type of health insurance coverage that allows you to maintain your health insurance coverage if you lose it due to a qualifying event such as losing your job, reaching the age limit under your parent’s insurance plan, or divorce. The goal of continuation coverage is to provide you with a temporary solution to help bridge the gap between your previous insurance coverage and a new insurance plan.

One example of continuation coverage in medical insurance is COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act. COBRA is a federal law that allows eligible employees and their dependents to continue their employer-sponsored health insurance coverage for a limited period of time, typically 18 to 36 months, after the loss of a job. The employee is responsible for paying the full premium for the coverage, including both the portion previously paid by the employer and the portion paid by the employee. Some, but very few, International Private Medical Insurance providers offer a continuation option in their group policies. Usually continuation is not guaranteed and has to be reviewed and approved by the insurers risk assesment team