Conversion Privilege

[wanaberetiree]

In my medical health plan thru my employer I found this clause:

"Conversion Privilege.

Who Is Eligible for Conversion Coverage

Except as specified below, if you lose coverage in this Plan, you have the right to purchase individual coverage through the Health Net conversion plan without being required to complete a health statement.

You must pay the cost of conversion coverage (called subscription charges). Please note, however, that the benefits, as well as the subscription charges, will not be the same as coverage through this Group Plan."

I am wondering if anybody has used this option and how much it ended up higher in cost? Any other details/opinions/comments are welcome!

PS: I have no specific plans to use it, just want to find out if and how it can be used.

[wanaberetiree]

Is this option so unusual or too expensive, so is not even worth for consideration?

[Emeritus]

Its a routine issue for students going off parents health plans. In my experience It's best used by those with catastrophic costs or risk, since there is often a maximum premium allowed by sate regulators.

We had one case where the family was thrilled to get the insurance even though the rate for the student was 1800 per month. The student had a rare chronic and expensive condition.

[wanaberetiree]

But if they claim that no a health statement required, why would it be so expensive?

[Emeritus]

Quote:

Originally Posted by wanaberetiree But if they claim that no a health statement required, why would it be so expensive?

They already have the health records. No one says they have to charge the same premium to everyone

"Please note, however, that the benefits, as well as the subscription charges, will not be the same as coverage through this Group Plan."

for example
· Generally premiums for conversion policies can vary depending on your health status, age, and other factors.However, if your prior group coverage was a fully insured HMO, then California law limits the premium you can be charged. Even so, you may find that your premiums are quite expensive.

[Gotadimple]

Quote:

Originally Posted by wanaberetiree But if they claim that no a health statement required, why would it be so expensive?

You no longer get the group rate. Your employer has been paying a part of the premium. When you leave, they won't pay for your coverage (darn them anyway). You may be converted to an individual plan.

The offer of conversion is one of many mandates group policies are required to meet. It is, however, not the only way to continue your coverage.

-- Rita

[wanaberetiree]

Quote:

Originally Posted by Gotadimple It is, however, not the only way to continue your coverage. -- Rita

Rita, can you elaborate about other ways?

[Gotadimple]

Quote:

Originally Posted by wanaberetiree Rita, can you elaborate about other ways?

You can take the conversion option
If your employer is large enough they will offer you COBRA
You can buy and individual policy
You can wait and see whether you would qualify for the government option in 2014

. . .

-- Rita