This term refers to the ability of someone who is insured to take their coverage with them if they leave the employer that is sponsoring the insurance.
For those with health insurance through an employer, if your employer has 20 more employees (counting both full-time and part-time workers, who count as a fraction of a full-time employee), the employer is subject to a federal regulation known as COBRA. This law allows individuals to maintain their health coverage in the event of a qualifying event. California has a similar state law for groups of 19 or fewer.
Please refer to our entry for COBRA, the Consolidated Omnibus Budget Reconciliation Act, for more information about health coverage continuation.
For life insurance and other coverage, you may have the option to convert your policy to an individual policy when you leave your group plan.
Premiums for any portable or converted coverage are your obligation. In most cases, your employer will make no contribution to the cost after you leave your group plan.