New Jersey Summary. Hospital service corporation group contracts for hospital, medical, surgical, or major medical coverage on an expense incurred or service basis are required to continue coverage. There are special rules for employees who take family and medical leave. Hospital service corporation group contracts for hospital, medical, surgical, or major medical coverage on an expense incurred or service basis.
Similar provisions are applicable to group health and blanket insurance plans.
Prior coverage for the three-month period prior to termination is required for continuation. Moreover, continuation is available for an individual covered by or eligible for Medicare, as long as there is no duplication of benefit provisions. New Jersey requires that employees and dependents whose coverage would otherwise cease because of a termination of the employee's job due to his or her total disability may continue coverage under the policy. Period of continuation coverage. Coverage must continue until the employee does not make a timely payment of a required contribution, the employee becomes employed again and eligible for benefits under another group plan, or employer terminates participation under a group contract, where the employee has the right to be covered by any new group contract offered by the employer.