What does "continuation of coverage" mean?

Continuation of coverage refers to the provisions that allow individuals to maintain their health insurance coverage under specific circumstances, such as job loss, reduction of work hours, or changes in employment status. This concept ensures that individuals do not lose their healthcare benefits and can continue receiving medical care even when their primary insurance sponsor changes. It often applies to situations like COBRA (Consolidated Omnibus Budget Reconciliation Act), which enables employees to keep their group health insurance benefits for a limited time after leaving employment.

The other options address different aspects of insurance but do not accurately define "continuation of coverage." For instance, the idea that it requires providers to cover all treatments misinterprets the nature of health insurance coverage, which typically includes exclusions and terms for what treatments are covered. Additionally, limiting the duration of coverage and describing it as a temporary solution during job changes also do not encapsulate the essence of continuation of coverage. Rather, it is about the right to maintain existing coverage beyond the usual eligibility because of specified events.