Which federal law ensures that Bill won't be denied coverage when he switches health plans?

The correct answer is tied to the Health Insurance Portability and Accountability Act, commonly known as HIPAA. This federal law was designed to enhance the portability and continuity of health insurance coverage. One of its significant provisions ensures that individuals like Bill cannot be denied coverage for pre-existing conditions when they switch health plans. This protection means that if Bill had prior health insurance coverage, the new insurer cannot impose waiting periods or deny his enrollment based solely on his health history.

HIPAA also allows for a more seamless transition between health plans, providing individuals with the confidence that their coverage will remain consistent even during changes in employment or insurance providers. This law is critical for promoting fair access to health care, ensuring that individuals do not face discrimination based on prior health issues when seeking new coverage options.

In contrast, other options address different aspects of healthcare and insurance. COBRA provides the right to continue certain health benefits after leaving employment, but it does not focus on the issue of coverage denial due to switching plans. ERISA governs employer-sponsored benefit plans but does not explicitly grant protections related to health plan switches. The Affordable Care Act (ACA) also offers protections, including prohibiting coverage denial due to pre-existing conditions; however, it builds upon provisions set forth by HIPAA