When you leave a company, one of the most important things to consider is how you will manage your health insurance cover. Many companies provide health insurance benefits to their employees, but what happens when you leave?
According to the Association of British Insurers (ABI) 2022 data, “a record 4.4 million people are now covered by health insurance through their employer, and 1 million claims have been made over the previous year; this is an 8% increase over the past few years.” With so many insured employees, it is inevitable that individuals will want to continue their healthcare coverage when their employment circumstances change.
This article will explore various options and discuss how to maintain the best private medical insurance cover when transitioning from your current health insurance plan upon leaving your job.
Learn about the process of leaving your company’s health insurance scheme and explore your options with Healthplan to make informed decisions about your healthcare insurance as you continue or start a new policy.
Leaving your company’s private medical health insurance scheme (PMI), whether due to changing jobs or retiring, can raise concerns about your health care cover. It’s essential to be prepared for such situations.
Your current employment health insurance cover and benefits may have met your medical needs, but finding a new personal policy can be overwhelming. If you are undergoing treatment or benefiting from wellbeing cover, you’ll want to ensure your healthcare coverage continues after leaving the company.
Can I continue my existing health insurance after leaving my current job?
In most situations, your employment health insurance will stop when you leave the company. However, you might have the option to transfer your cover and underwriting to a new employer if you change jobs. If this isn’t an option and you wish to continue with cover you would now be responsible for paying the premiums on a personal policy. The cover and terms can remain the same but the premium can increase dramatically to that being paid by your previous employer. It’s important to determine if this continuation is possible and if it makes financial sense.
We at HealthPlan can advise if it is possible to obtain continuation terms from the current insurer to enable you to switch to an individual policy, join a partner’s scheme if applicable, or explore coverage through the National Health Service (NHS) for ongoing issues.
In some cases, transferring health insurance may not be possible at an affordable level based on your medical history, previous claims, and underwriting policies. This may require starting a new policy with different benefits and premium levels. In the first year, your options may be limited, but after that, a professional broker can find the best cost-effective packages for you.
Steps to take when leaving your company’s health insurance scheme:
Some employees are unaware of their company’s health insurance policy regulations and benefits. We recommend taking the following steps to ensure you continue to have health insurance when leaving your company’s health insurance scheme.
- Take a close look at your company’s current health insurance policy. Understand what it covers, including benefits, limitations, exclusions, and underwriting type. Underwriting plays an important part when transitioning to a personal scheme. In particular, MHD, known as “medical history disregarded.” Underwriting will restrict your options for changing insurers.
- Explore alternative health insurance options outside of your company’s plan. This may include getting continuation coverage from your current insurer, switching to an individual policy, joining a partner’s plan if possible, or exploring coverage through the NHS (National Health Service) for ongoing health issues. Speaking to a broker, such as HealthPlan, will help to establish how to move forward.
- Compare Policies: Once you’ve narrowed down your options, compare the policies side by side. Look at the cover details, including any exclusions or limitations, as well as the cost.
- Notify Your Employer: If you decide to leave the company’s health insurance scheme, inform your employer. They may have specific opt-out procedures or need to adjust your payroll deductions accordingly.
- Coordinate the timing of your transition to ensure there’s no gap in your health insurance. Ensure your new policy starts when your company coverage ends to avoid any periods without insurance.
- Understand Any Continuation Options: In some cases, you may be able to continue your existing policy with the same insurer if you leave your job. You can continue with the same cover and underwriting but pay for it yourself. Check if this is available and assess whether it’s a viable option for you financially.
- When selecting a new insurance policy, consider your long-term healthcare needs. Ensure that your chosen cover aligns with your healthcare requirements and financial situation.
Will the new private medical insurance cover have the same benefits?
The company’s health insurance policy may provide standard coverage, while personal private medical insurance can be customised to meet individual needs. With private insurance, you can reduce excess fees and include additional benefits such as dental, mental support and wellness cover.
As an employee, the company may have covered your health insurance costs as a benefit, or a percentage may have been deducted from your salary. When you leave the company, it will be your responsibility to cover the premium costs of your private medical insurance. Many factors, such as age, location, and medical history, determine new policies. It’s important to seek assistance from a professional broker to get the best cover.
HealthPlan provides its clients with a smooth transition to their health coverage, a real-life example:
Mr C had left his employer’s scheme with Vitality through retirement and had been offered to continue personal terms; however, this cost was in the region of £9000 a year. We carefully looked at the options, and after completing the switch declaration, we found a suitable policy with an alternative insurer for around £3200. We had limited options due to the underwriting and complex medical history, but we found a suitable and affordable outcome in the end.
HealthPlan provides personalised assistance to help clients navigate the transition of their health coverage. Each client is assigned a dedicated representative who answers questions, provides guidance, helps them with a smooth PMI transition, and provides them with the coverage they need when needed.
Summary
When leaving your company’s health insurance scheme, one of the main considerations is finding alternative cover. The last thing you want is to be left without health insurance, as medical bills can quickly add up and become overwhelming. Take the time to research and compare different insurance options to find a plan that meets your needs and budget. It’s a good idea to consult a professional broker before making any decisions, as this could save you money on healthcare costs.
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