What does Creditable Coverage mean? Read on to discover the definition & meaning of the term Creditable Coverage - to help you better understand the language used in insurance policies.
Creditable coverage refers to coverage under a previous health insurance plan prior to enrollment in a new one. Ordinarily, under a new health plan, pre-existing health conditions (conditions for which treatment is sought within six months prior to enrollment), are excluded from the coverage within a year. Under a new law, the Health Insurance Portability and Accountability Act (HIPAA), if you applied for new coverage within 63 days of having previous coverage, the new plan cannot impose the exclusion. In other words, to offset the exclusion, the period of lapsed coverage must not be more than 63 days between the policies.
We hope the you have a better understanding of the meaning of Creditable Coverage.