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"Continuation" and "Conversion" are valuable rights in health insurance. "Continuation" is a right to continue to be covered in the same policy at the same group premium price after leaving a group. "Conversion" is a right to continue to be covered in the same policy after leaving a group, but at an individual premium price. Both rights are valuable, but continuation is more valuable for a high-cost worker (or family) because the group premium price is lower than the individual premium price. Title X of the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) is a federal law that gives people with employer-sponsored health insurance (from an employer with more than 20 employees) the right to continue coverage for 18-36 months if they would otherwise lose coverage due to circumstances beyond their control. These circumstances include: (1) they lose their job; (2) their hours are cut; (3) their employed spouse dies or divorces them; or (4) they are a student who graduates and losses parental plan coverage. When coverage is continued under COBRA, the employee must pay the full premium including any portion previously paid by the employer. This is still probably less than the employee would pay for an individual policy without COBRA. To continue coverage under COBRA, an employee must let his/her employer know within 60 days of leaving the group. If you work for an employer with fewer than 20 employees and lose your job or group health insurance, then COBRA continuation rights do not apply but you have other options. You may be able to convert your group health insurance policy to an individual policy without having to pass a medical exam. There are also "Interim" or "Short Term" health insurance policies that provide coverage for a couple months for people between jobs or moving from college to a job. People with a chronic illness may have to pay a higher premium for individual health insurance or get a higher deductible. If you have a chronic illness and cannot get individual health insurance at a reasonable rate, then check with your state insurance department to see if your state has a subsidized insurance program. "Noncancellable" or "Guaranteed Renewable" insurance means that an insurance company cannot cancel your policy if the premiums are paid. A "Conditionally Renewable" policy can be cancelled, but only if the company cancels all similar policies. A "Free Look" clause means that if you are not satisfied with your policy, you have a period of time (e.g. 10-30 days) after enrolling in which you may cancel the policy for a full refund.
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