There’s a little bit of misconception running around about pre-existing conditions and the evils of insurance companies. The HIPAA link explains that when you switch insurance carriers, the new one can’t exclude pre-existing conditions. The key here is that you can’t let your insurance coverage lapse; if you’re laid off or you quit to work on a startup, you absolutely must make sure that you’re on Cobra or perhaps a low cost high deductible plan.

If you do let your insurance lapse, then the next insurance company can only exclude covering the cost of pre-existing conditions for the next 12 months at most (less than that, if you had any continuous coverage the previous year — but see the HIPAA link for details).

Why am I blogging about this now? Because Cobra coverage from my previous company is running out, and since startups often times aren’t cash flow positive, they need to understand the details of how insurance coverage works. My situation is compounded by the fact that I’m also doing no-charge freelancing work for some non-profits and groups that I like, and so it’d even be a stretch for me to qualify for Freelancers Union insurance.