The 1996 Health Insurance Portability and Accountability Act (HIPAA) further expands continuation coverage options for insured workers. HIPAA allows workers with COBRA benefits to buy individual policies with no pre-existing condition exclusions following 18 months of COBRA coverage. Workers in companies with fewer than 20 workers with health insurance while working also have guaranteed purchase privileges into the individual market immediately upon retirement (although those plans may be subject to state regulation). In the absence of community rating, premiums are likely to be higher than those paid while the worker was employed or covered by COBRA.
Today's retirees rely on all of these options (and are expected to use the portability provisions of HIPAA). Despite the various options for post-retirement health insurance coverage, studies show that one in 14 early retirees is uninsured after retirement.
