What does “portability” mean in health insurance policies?

Portability in health insurance refers to the ability of an individual to maintain their health insurance coverage when changing jobs or moving between different employer-sponsored plans. This concept is particularly important in ensuring that people do not lose their coverage as they transition from one job to another, which can be critical for continuous health care and access to necessary medical services.

Maintaining coverage during job changes helps individuals avoid gaps in health insurance, which could lead to financial hardship and decreased access to necessary medical treatments. Portability ensures that individuals have the security of their health insurance regardless of employment status or changes in their job situation.

This understanding of portability is crucial for policyholders to navigate health insurance options effectively as they move between different employment opportunities or life changes, ensuring they are adequately covered during transitions.