Portability of Heath Insurance

The Department of Labor’s Employee Benefits Security Administration (EBSA) administers the Employee Retirement Income Security Act of 1974 (ERISA), which governs pension plans (including profit sharing and 401(k) plans) and welfare plans (including health, disability and life insurance plans). ERISA also includes the health coverage continuation and portability provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA) and the Health Insurance Portability and Accountability Act (HIPAA). This information sheet focuses on job loss and its effect on workers’ health benefits. When facing job loss or a reduction in hours, workers need to know their rights and options ahead of time to prevent these situations from meaning an end to their health coverage. There are several options available to individuals who are losing their health coverage as a result of losing their jobs, and the PEO organization will always help emplyee concerns in this regards.