Workers Can Retain Group Health Insurance After Leaving Jobs
Translated & summarized from Bizportal by baba
Israeli workers leaving their jobs can utilize a "continuity right" to transfer their group health insurance to an individual policy without new medical checks. This provision, effective since 2017, ensures pre-existing conditions remain covered, though individual policies are typically more expensive. Policyholders have a limited window, usually 60 to 180 days, to exercise this right after notification from the insurer. Insurance companies must provide written notice about policy termination and the option to continue coverage.
The story in 6 lines · by baba
- Workers leaving jobs in Israel can maintain group health insurance via a "continuity right" without new medical exams.
- The continuity right allows transition to an individual policy with the same insurer, preserving coverage for pre-existing conditions.
- Individual policies under this right are generally more expensive than the previous group coverage.
- A limited time window, typically 60-180 days, exists to exercise the continuity right after notification.
- Insurers must notify policyholders of termination and their right to continue coverage.
- Coverage continuity may extend to spouses in some policies, even after divorce or death of the main policyholder.
Employees who leave their jobs in Israel may be able to maintain their group health insurance coverage without new medical examinations or declarations, thanks to a "continuity right" established in 2017. This right allows individuals to transition from a group policy, often provided at a subsidized rate by an employer, to an individual policy with the same insurance company. The primary advantage of group insurance is its lower cost and sometimes the absence of a detailed medical questionnaire upon enrollment. However, coverage is contingent on belonging to the group, and it typically ends within 90 days of employment termination.
The continuity right ensures that pre-existing conditions covered under the group plan remain covered under the new individual policy, preventing exclusions or price hikes due to chronic illnesses diagnosed during group coverage. This is particularly beneficial for individuals who develop health issues while employed, as obtaining a new individual policy elsewhere might lead to higher premiums or denied coverage for those conditions. The transition is limited to overlapping coverage and does not apply if moving to a different insurance provider.
While the continuity right preserves coverage, the individual policy is generally more expensive than the group plan, priced according to the company's standard rates for private clients at the time of transition and the individual's age. Some policies may offer discounts, but these vary. The new coverage is similar but not identical to the old one, necessitating a comparison with standard private health insurance plans.
There is a limited window to exercise this right, typically ranging from 60 to 180 days from the date the insurance company notifies the individual of the policy's termination. Missing this deadline results in the loss of continuity. It is advisable to obtain the terms of continuity and a price quote before leaving a job. Some policies offer seamless coverage from the group plan's end date, avoiding uncovered periods.
Insurance companies are legally obligated to notify policyholders in writing at least 30 days before a group policy ends or is not renewed, informing them of their right to transition to an individual plan and any potential discounts. This notification should also cover family members insured under the group policy. In some cases, like with Harel insurance, the continuity right extends to a spouse after divorce or the death of the primary policyholder. It is recommended to compare the continuity option with any group insurance offered by a new employer and to secure written confirmation of the continuity and transferred coverage to prevent gaps during the transition.