Continuation plans for employees wanting to transfer their coverage

Handing in your notice at work means leaving a number of things behind, but your employer-provided health insurance policy doesn’t need to be one of them. A continuation plan can help you maintain medical coverage, even when you’re no longer employed by the original policyholder. There are a number of things to consider, however, so it’s worth knowing what your options are before you sign a contract.

What are continuation plans?

When you leave an employer and your previous insurer agrees to transfer your employer-provided policy to an individual one, you’ve got a continuation plan. What you need to understand is that not all plans can be continued. Some employers will have included an option for departing employees to carry on coverage post-employment, but you will have to check with your HR team or broker to see if that applies to you.

Major insurers, such as Aetna, Bupa and Cigna, are most likely to accept transferring a company health insurance plan than local, smaller companies. What you should be aware of is that sometimes coverage, benefits, limits and even the premium can change in the transfer, and some insurers may reject cover to people with certain pre-existing conditions.

What to look out for when transferring an employer-provided policy

If you find your insurer is willing to transfer your company policy, then you’ll need to read the fine print and be clear with them just what your continuation policy will contain. Policies can end up with increased premiums due to companies being able to negotiate more attractive rates because they insure a group. Insuring individuals means increased risk which can result in higher premiums.

Any pre-existing conditions you have can also be a concern for you and your insurer. An insurer that is willing to offer you a continuation plan might just add a loading, an extra fee on top of your premium, to guarantee your coverage. How much will depend on the insurer and your condition, however it can sometimes be more expensive than it might be to negotiate a new policy. If your pre-existing condition is really serious, you might be denied a transfer outright.

Getting a continuation plan before you leave your employer

Going to your company’s insurer directly is an option, however the best way to negotiate transferring your coverage is to use a broker. Intermediaries, like Pacific Prime Singapore, can work with you to ensure the continuation plan your insurer offers will still meet your needs once you leave your employment. They’re also impartial, meaning you are at the centre of their decision making processes, which might include suggesting a new plan if necessary.

Transferring coverage or getting a new plan: what’s the best option?

Sometimes you might find that the costs of carrying on your employer-provided plan are too high, or the coverage and benefit restrictions make it less attractive. In these cases, often a new plan can be a better option. For those of your without pre-existing conditions, this can generally be a cheaper option. If you do have health issues covered under your employer’s plan but you’re concerned you’ll lose coverage with a new plan, talk to a broker to find out your options.

The Pacific Prime Singapore difference

Our team of experts are well experienced in reviewing, renewing and negotiating insurance policies. Doing it yourself can be complex and time consuming, but with a broker like Pacific Prime Singapore, you can leave the hard work to us and we’ll get you the right coverage at an affordable rate. To discuss your options when it comes to leaving your current employer but staying covered health-wise, contact our team of advisers today!

Jessica Lindeman is a Content Strategist at Pacific Prime. She comes to work every day living and breathing the motto of “simplifying insurance”, and injects her unbridled enthusiasm for health and insurance related topics into every article and piece of content she creates for Pacific Prime.

When she’s not typing away on her keyboard, she’s reading poetry, fueling her insatiable wanderlust, getting her coffee fix, and perpetually browsing animal Instagram accounts.