What is “health insurance portability” in simple terms?

Health insurance portability refers to the ability of individuals to maintain their health insurance coverage when they change jobs or move to a new location. This concept is essential because it ensures that people do not lose their health insurance and the associated benefits simply because they transition to a different employer or relocate.

Portability safeguards continuous access to healthcare services and prevents gaps in coverage that can lead to significant financial burdens. This is particularly important in today's job market, where frequent job changes are common. The ability to carry over benefits helps in preserving a person's health history and ensuring they can access necessary medical care without interruption.

Other options focus on different aspects of health insurance that do not relate to carrying over coverage during job transitions. For instance, adding new benefits to a plan, converting a life insurance policy, or renewing a health insurance policy are important concepts, but they do not directly address the idea of maintaining coverage during job or location changes.