New Jersey health insurance buyers are protected by HIPAA, an important piece of legislation which passed in 1996. HIPAA extended the rights of employees who purchase health insurance through employer-sponsored plans and families with individual health insurance policies. While HIPAA was a national piece of legislation, states interpreted it differently when enacting its provisions and guidelines. All New Jersey health insurance buyers should understand HIPAA protection when looking for a new insurance policy, as the legislation has several important provisions which can make it easier to stay insured while between jobs or while looking for coverage.

HIPAA protects New Jersey residents by limiting the rights of employers to request info about employees' medical histories. Under New Jersey HIPAA laws, employers can't request medical records or information about an employee's medications and treatments except under several very specific circumstances. With that being said, most health insurance providers will ask for examinations or medical records as evidence of insurability before an application is approved, but this information does not need to be shared with an employer in the state of New Jersey and employers can't ask for it.

HIPAA eligible New Jersey residents are guaranteed the right to purchase individual insurance policies from any insurance company that offers individual policies. However, this is subject to certain conditions; for instance, if a HIPAA-eligible New Jersey resident is able to purchase an insurance policy through an employer or if the resident decides to switch insurers, applicants may have to wait until November of each year. November is treated as an "open season" for health insurance purchases in the state of New Jersey under HIPAA guidelines. In addition, New Jersey HIPAA law can protect dependents. For instance, newborns and adopted children are covered for 31 days under a parent's health plan through New Jersey HIPAA law. While these children are automatically enrolled, it's up to individual policy holders to arrange for insurance coverage after these first 31 days. State law also controls insurance companies' ability to restrict coverage or to raise insurance premiums due to preexisting conditions.

New Jersey health insurance buyers should contact the state's insurance commission with any questions about buying health insurance in the state. HIPAA law is extensive and can be a powerful tool for health insurance buyers, particularly when combined with other legislation such as COBRA. New Jersey workers can stay protected when purchasing insurance by understanding their rights and by performing adequate research before purchasing a policy. Taking the time to search for low quotes can yield low-cost policies with superior coverage in the state of New Jersey for individual and group health insurance buyers alike.