What is a conversion policy for health insurance?

When your group health insurance ends, many states require employers to offer you a conversion policy regardless of your health or physical condition. When you convert your policy, you remain with the same insurer but begin paying for your own insurance. This is called a conversion plan because you convert from a group to an individual plan.

Conversion coverage is almost always more expensive than the group plan you may have had while employed, and it usually provides fewer benefits. However, it may be your only choice for coverage and is preferable to going without insurance.

Conversion Insurance Policy Facts

  • Conversion policies are not available in all states.
  • In some states you must use up any COBRA (Consolidated Omnibus Budget Reconciliation Act) or state continuation coverage that you are eligible for before purchasing a conversion policy.
  • In other states, you can buy a conversion policy immediately after losing or leaving your job.
  • If at all possible, be sure to explore all insurance options as far in advance as possible, including the application process.


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Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.