What does health insurance “portability” mean?

Since January 1, 2016, all companies, regardless of their size or business sector, are required to offer employees a group supplemental health insurance plan, for which the employer covers at least 50% of the premium.
Portability enables the continuation of coverage, subject to certain conditions (see further), under the group health insurance plan after an employee leaves the company. The right to portability is automatic.

What conditions must be met?

Three conditions must be met by the former employee in order to benefit from the portability of the company’s supplemental health insurance plan:

1. They were enrolled in their ex-employer’s group plan.
2. They left the company at the end of their contract (whether fixed-term, temporary, seasonal, apprenticeship or work-and-study), or following a layoff or dismissal (unless for gross misconduct) or following a mutually agreed termination.
3. They receive unemployment benefits from the French government.
   

Former employees who have retired, resigned, or been dismissed for gross misconduct, and therefore do not receive unemployment benefits, are not eligible for portability.

How long does the portability last?

Supplemental health plan portability lasts a maximum of 12 months.
Portability ends earlier in the following situations:

• if the former employee has found a new job
• if the former employee is no longer eligible for unemployment benefits
• if the company goes bankrupt and the liquidator does not make arrangements to maintain portability

The length of the portability also depends on how long the former employee was with the company. For example, if they worked for the company for six months, they will continue to be covered for six months, provided that they still receive unemployment benefits. Likewise, if they were employed seven months, they will be covered seven months, and so on. However, even if their employment lasted more than a year, their coverage under the group supplemental plan cannot exceed 12 months.

Who pays the health insurance premium during the portability period?

The former employee has nothing to pay to benefit from portability. The premium is paid by the former employer and the company’s active employees, according to the principle of cost pooling. If the company defaults, it is up to the liquidator to make arrangements for the premium to be paid.
Note that if the former employee’s coverage under the group plan also included family members – a spouse/partner; their children or their spouse/partner’s children; or children or parents living in their home and providing childcare – for whom the company paid at least 50% of the premium, then these family members also benefit from portability, at no charge.
“Portability is an important factor in continuing to protect one’s health while navigating a career transition,” says Patricia Delaux, Head of Health and Personal Protection at AXA Santé et Collectives.

What steps must be taken to benefit from portability?

When an employee leaves a company, their employer must inform them of their right to maintain coverage under the group supplemental health insurance plan. If the employee opts to exercise their right, this is specified in the certificate of employment delivered to the employee along with their statement of final pay and entitlements. The company must also notify the administrator of the group supplemental health insurance policy.
The employee does not have any paperwork to complete at this time. However, after leaving the company, they must send the insurer a certificate of eligibility for unemployment benefits, delivered by the French unemployment office, each month. Any failure to do so will result in the immediate termination of their coverage.

What happens at the end of the portability period?

When the portability period is over, the insurer may offer to maintain coverage under an individual supplemental health insurance policy. This same conditions must apply, meaning that the insurer cannot exclude any medical conditions that may have arisen since the end of the insured’s employment.

The individual policy will enable the former employee to maintain their coverage, but they must pay the entire premium cost. They are free to accept it or not and have six months to make the decision.

Portability also applies to group personal protection plans.