According to HIPPA, when an insured individual leaves an employer and immediately begins working for a new company that offers group health insurance, the individual

• A. is eligible for coverage upon hire
• B. eligible after 3 months
• C. not eligible for coverage
• D. must wait 90 days

Answer: (A)

HIPAA makes it possible to move a group health plan from one employer to another without a gap in coverage. When you leave a job and immediately start with a new employer that offers group health insurance, you’re eligible to enroll in the new plan on your first day of work. This immediate eligibility is tied to the idea that your prior creditable coverage can be counted toward any waiting period in the new plan, potentially eliminating preexisting-condition exclusions. If there’s a long break in coverage, the new plan might apply a preexisting condition waiting period, but with no such lapse, coverage typically begins right away on hire. In short, you are eligible for coverage upon hire.