“Continuation” is the term used to describe the ability of a person to continue their health insurance coverage on an individual basis in the event that they leave the group, company, or business that had previously provided their health insurance plan.
The major point to understand with a Continuation option on a group health insurance policy is that the individual must pay for the cost of coverage out-of-pocket once they have left the group; the company will no longer pay for the former member’s insurance protection.
Company X gives all employees comprehensive health insurance coverage as part of the employee benefits package. Alice joins Company X and is provided health insurance benefits as part of her employment.
10 years later, Alice decides to leave Company X. Because the health insurance policy purchased by the company included a Continuation Benefit, Alice is able to move to an individual policy after leaving the company with no break in coverage.