Health Insurance When Switching Jobs: When Does Your Current Health Plan Expire?

As you plan to switch jobs, one thing that you should keep in mind is group health insurance coverage. Generally, the group coverage ends with your employment, as employer cover is a group policy and you are protected as long as you are a member of that group. You should check the actual coverage end date with your HR/insurer. Read along to know more about what happens to your group health coverage when you switch jobs.

When Does Health Insurance Expire After Leaving a Job?

There’s no single end date that is applicable to all group health covers. This depends on the terms of the policy and agreement between the insurer and the employer. A group health policy is a contract between your employer, who is the master policyholder, and the insurer. You are an insured member under it.

• Last working day:

Many group policies end a member's cover on the last working day. Once HR records your exit, your name is removed from the member list.

• Notice period:

While serving the notice period, you are still on the company’s payroll and are a part of the group. So the coverage continues unless specified otherwise in the terms and conditions of the policy.

• Month-end or other dates:

A few policies may consider the last day of the month in which the employee leaves as the closing date, or specify a particular date when the coverage ends after the employee has exited the group.

• Grace period:

A grace period may be provided as the group cover ends, but the duration depends on the agreement between the employer and the insurer.

• Dependants:

Dependent coverage generally follows the employee’s eligibility under the group policy, subject to the policy terms and any applicable continuation arrangements.

• Treatment in progress:

Any treatment in progress that was already covered in the group health cover is paid out since the claim was made before the employee's exit. However, any claims made after the employee leaves the group cover are not eligible.

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How Can You Avoid a Health Insurance Coverage Gap While Changing Jobs?

The best way to avoid coverage gap is to understand when your existing group health insurance ends and when your new cover starts.

1. Confirm when your old cover ends:

Ask HR whether your health insurance expires on your last working day or continues until a specified date. Check when your dependants’ cover ends, too.

2. Find out when the new cover starts:

Your new employer may activate the policy on your joining date or follow a different timeline. Confirm the start date, family coverage and any waiting periods that apply.

3. Check for days without cover:

Compare the two dates. If your old policy ends on 31 October and the new one starts on 1 November, there is no gap. If the new cover starts later, you will need to consider how to cover the intervening period.

4. Look at the available options:

Understand the end and start dates of the coverage. You can also check whether your existing insurer allows migration to an individual policy, or compare a separate personal health insurance policy.

5. Keep your policy records:

Save your e-card, policy details and proof of continuous coverage. If you have planned treatment, confirm which policy will cover the expense before making decisions about your last working day.

Can You Continue Your Employer's Health Insurance After Leaving a Job?

You cannot continue your employer's group policy unchanged after leaving the company. However, you may be able to move to an individual health insurance policy or family floater policy with the same insurer.

Under IRDAI's Guidelines on Migration and Portability of Health Insurance Policies, members of an indemnity-based group health policy, including covered family members, have the option to migrate when they leave the group.

What happens to your existing benefits?

IRDAI allows eligible credits from previous coverage to carry forward, including:

• Waiting period credits: For pre-existing diseases and specified illnesses.

• No Claim Bonus: Credits accumulated under the previous policy.

• Moratorium period: The period of continuous coverage already completed.

These credits transfer to the extent of the sum insured, as explained by IRDAI.

Migration does not guarantee the same premium, benefits or sum insured. Contact your existing insurer before leaving your job to confirm the application process, available policies, premium and applicable requirements.

Migration vs. Portability

Remember: Neither migration nor portability transfers your existing cover automatically to your next employer's group policy. Your new employer's cover has its own start date and terms.

Conclusion

Group health insurance while changing jobs ends as you exit your current company. The day the coverage ends can be the last working day, month-end, or after the grace period ends, depending on the policy. Always check with your current and next employer about your health insurance when changing jobs, when it ends or when it starts, to avoid coverage gaps. You can also check if your current group cover can be migrated to an individual policy with the same insurer to ensure continued coverage.

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