True or false: When COBRA’s maximum coverage period ends, so do a plan administrator’s worries about continuing health coverage for the qualified beneficiary.

This statement is false.

Sometimes overlooked are a group health plan’s duties related to conversion policies. The purpose of a conversion policy is to continue to make available to the qualified beneficiary the same coverage that was in place during the COBRA coverage period. Here are answers to some questions that exist about conversion rights.

What Types of COBRA Coverage Are Subject to Conversion Requirements?
Conversion rights apply to fully insured plans, either because of a state-law mandate or the plan terms provide for a conversion right. The attraction of conversion policies is that you qualify without having to show
proof of insurability. For qualified beneficiaries who have been on COBRA coverage for a while, providing proof of insurability can be a high hurdle to clear. Most states have mandatory conversion rules when coverage terminates for reasons other than a failure to pay premiums. Some states will limit the conversion rights to a type of coverage (for example, HMOs). Check your state’s law and your insurance certificate.

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