Changing Jobs? Don't Forget Your Health Insurance

You changed jobs. What happens to your health insurance?

A new job usually means a new salary, new colleagues, new benefits and a new health-insurance arrangement.

But there's one thing many employees don't think about: what happens to the health insurance I had through my previous employer?

Your employer-provided health insurance is generally linked to the employer's group policy. When you cease to be an employee or member of that group, your group coverage can cease according to the applicable policy terms. Some group policies provide options for migration or portability into an individual policy, subject to applicable rules and conditions.

So don't assume your old employer's health insurance simply follows you to your new job.

1. Your old employer's cover and your new employer's cover are two different things

When you join a new company, you may receive another group health policy.

That doesn't automatically mean there was uninterrupted coverage between the two employers.

You should find out:

• When does your old employer's cover end?
• When does your new employer's cover begin?
• Who is covered under the new policy?
• What is the new sum insured?
• Are your dependants included?
• What are the important conditions?

Don't assume the two covers are identical

Never assume that 'I have insurance through my new company' means your coverage is identical to what you had before.

2. What happens to the policy when you leave?

This is where employees need to pay attention.

Group health insurance is generally connected to membership of the group.

Some group policy wordings specifically provide for an employee leaving the group to have an option to migrate to an individual health policy, with continuity treatment subject to applicable conditions.

However, don't assume every employer policy works in exactly the same way.

Check your actual group policy and ask the insurer or HR about the options available to you.

3. Can you carry your waiting-period history with you?

This is one of the most important questions.

Suppose you've been covered by your employer's group health policy for several years. You may wonder: 'If I leave this job, do I have to start from zero?'

Not necessarily. The applicable portability or migration framework can provide continuity benefits for certain waiting periods, subject to the relevant rules, the new policy and its terms.

But the extent of continuity isn't something you should guess. Ask specifically what continuity benefits will apply before you make a decision.

4. Don't wait until your last day to ask HR

This is probably the biggest practical lesson.

If you're changing jobs, ask before leaving: 'What happens to my group health insurance when my employment ends?'

Then ask:

• Is there a migration or portability option available?
• What is the process and timeline?
• What documents will I receive?
• When exactly does my existing cover terminate?

Get it in writing

Get the information in writing where possible.

5. What if your new employer provides health insurance immediately?

Great — but still understand the new policy. Don't assume old policy equals new policy.

Compare:

• Sum insured
• Who is covered
• Room/ICU provisions
• Co-payment
• Waiting periods
• Exclusions
• Network hospitals
• Additional benefits
• Deductibles, if applicable

The point is to know, not assume

Your new employer may offer excellent coverage. Or you may discover that some aspects are different from your previous policy. The point is to know, not assume.

6. What if there is a gap between jobs?

This deserves special attention.

Suppose: old job ends, 30 days without employment, then new job begins.

Don't automatically assume that your new employer's health insurance will cover the entire period.

Find out exactly when your old cover ends and when the new cover begins. If there is a gap, consider whether you need an individual health-insurance arrangement rather than simply waiting for the next employer policy.

7. What if you already have an individual health policy?

This can make your situation very different.

An individual or family health policy is not dependent on your employer in the same way as an employer group policy.

That's one reason some employees choose to maintain personal health insurance even when they have employer-provided cover. Your personal policy can provide an additional layer of continuity independent of your employment.

Whether you need additional cover depends on your circumstances and the actual terms of the policies you already have.

8. Don't cancel your personal policy just because your new employer gives you insurance

This is an important mistake to avoid.

An employer-provided policy can be valuable. But employment can change.

• Change jobs
• Take a career break
• Become self-employed
• Retire
• Move to an organisation with different benefits

Understand what you'd be giving up

Your personal health insurance isn't tied to that particular employer. So before cancelling an individual policy, understand exactly what you're giving up.

9. What about your family?

Don't think only about yourself.

If your employer policy covers your spouse, children and parents, check what happens to each member when your employment ends.

And when you join the new company, confirm who can be covered under the new employer's policy. The new employer's rules may not be identical to your previous employer's arrangement.

10. Your job change is actually a good time for a health-insurance review

A job change is a life event. It's an ideal time to take 15–20 minutes and review your overall insurance situation.

Ask yourself:

• What do I have today?
• What will I have after joining the new company?
• Is there any gap?
• Who is covered?
• What happens if I leave this job in two years?
• Do I have any personal health insurance independent of my employer?

Prevent unpleasant surprises later

These questions can prevent unpleasant surprises later.

Your job-change health insurance checklist

Before leaving your current employer, work through this checklist:

• Find out when your group cover ends
• Ask whether migration/portability options are available
• Understand applicable continuity benefits
• Ask about required documents and timelines
• Check your dependants' coverage
• Find out when the new employer's cover begins
• Compare the new policy with your previous cover
• Check whether there is any coverage gap
• Review any personal health insurance you already have
• Keep copies of your policy/insurance documents

One question every employee should ask before changing jobs

If I leave this company tomorrow, what happens to my family's health insurance?

If you don't know the answer, now is a good time to find out.

Not on your last working day. Not when you're admitted to a hospital. Before you leave.

Important

This article is for general insurance-awareness and educational purposes. The continuation, migration or portability of employer-provided health insurance depends on the applicable regulations, the group policy, the insurer's terms and the circumstances of the employee's exit. Always confirm the applicable process, timelines and benefits with your employer or insurer and review the relevant policy documents.