If an employee reduces his working hours, what happens to his group health insurance coverage?

When an employee reduces their working hours, there may be implications for their group health insurance coverage, but in many cases, the employee has the option to convert their group policy to an individual policy without having to provide proof of insurability. This means they can maintain their health coverage even if they are no longer eligible for the group plan due to a reduction in work hours. This conversion option is a protective measure that ensures individuals aren't left without coverage during transitions in employment status or hours worked.

The ability to convert to an individual policy typically comes with certain conditions, such as the requirement that the individual has been covered under the group plan for a specific period before the reduction in hours. This provision is particularly significant in the context of health insurance, as it provides a safety net for employees who might otherwise face challenges obtaining coverage, especially if they have existing health conditions.

In contrast, the other options do not accurately reflect the scenario. For example, remaining unchanged or becoming more comprehensive would not apply because changes in working hours typically affect eligibility for group coverage. Automatic cancellation, on the other hand, might happen in certain circumstances when an employee completely leaves the job, but a mere reduction of hours usually offers options for continuation, like the conversion to an individual policy.