CONVERSION COVERAGE
When must an employer offer conversion coverage?
When employees are no longer eligible for coverage under the employerıs original insurance plan, they must be offered the choice of either a conversion or a continuation policy. It is the insurers responsibility to provide at least one (but not both) of these policies.
The difference between a conversion plan and a continuation policy is that the former is an individual health plan from the insurance company with benefits identical to those one received as part of the company. A conversion policy deviates slights as this option is only available to those who have left their jobs or the group insurance of which they were a part has been terminated. The rule is that individuals must enroll in a conversion within 31 days after his/her group coverage has been eliminated.
Note: Conversion policies may be purchased either instead of or after COBRA Continuation Coverage has been exhausted.
What benefits are covered under a conversion policy?
Within the Commonwealth of Virginia, conversion policies are not obligated to provide equal or even similar benefits as under the old policy. Hence, the benefits ensconced within a conversion policy may not be as encompassing or extensive as to which an individual may have formerly been accustomed under a group plan.
Do conversion policies cover pre-existing conditions?
By law, conversion policies are not permitted to impose new pre-existing condition exclusionary periods. However, that does not completely eliminate the possibility of an individual having to wait out the remaining portion of any pre-existing condition exclusionary period carried over from his/her former health plan.
What types of costs will I be billed for conversion coverage?
ı Virginia places few limits on what you can be charged for a conversion policy. Premiums for conversion policies can vary due to your health status and age.
Does the carrier have the option to cancel my conversion policy? So long as all premium payments are made regularly, no attempts are made to the defraud the company and, in the instance of managed care plans, an individual does not move outside of the service plan coverage area; then a carrier does not have the legal authority to cancel an individualıs conversion policy due to the fact that he/she got sick after the enrollment period. | 
