Like many NFL players, retired wide receiver Karsten Bailey left college early to play professional football. When his NFL career ended, he was eager to return to school and finish his degree. Thanks to the NFL Player Insurance Plan, he could concentrate on his education and not worry about health insurance. The plan offers five years of continuing coverage for each player vested in the pension plan when his career ends. (Non-vested players receive coverage until the August 31 following their release.)

“It worked really well for me,” said Bailey, referring to the continued coverage. “I didn’t have to worry about that while I finished school.” Bailey’s coverage didn’t change; he only had to make sure his records were up to date so he’d receive insurance cards and other materials from the plan.

“One decision players should not neglect is planning for their post-career health care needs,” said NFL Players Association Benefits Director Miki Yaras-Davis. “Health insurance can help families preserve their income in the face of a serious illness or injury.”

Veterans participating in the continuing coverage enjoy the same coverage they had as active players; the only thing that changes is their status. “The main difference between continuing veteran status and active status is that continuing veterans don’t have a club insurance plan representative to handle their transactions,” said NFLPA Benefits Manager Adora Williams. “Players leaving the game should be proactive in learning about the insurance plan and make sure a permanent home address is on file with the plan.”

The post-career insurance continuation was negotiated for players to help facilitate their transition into life after football. But after five years, Williams said, the continuation expires and players need to secure new coverage. For example, Bailey and several other vested players who left the NFL in 2003, plus non-vested players who do not get picked up for the 2008 season, will lose their NFL coverage on August 31, 2008.

Players have federal protection when moving from one group insurance plan to another. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) was enacted in part to help improve the portability and continuity of insurance coverage to make it easier for people to change jobs. “While HIPAA laws require group plans to guarantee availability, there is very limited protection in the individual insurance market,” Williams said “Players who do not have the group plan option need to prepare.”

Players who will lose coverage and do not qualify for another group plan have the following options:

1. COBRA. Players have the right to purchase a temporary extension of the NFL Player Insurance Plan coverage at group rates plus an administrative fee. There is no legwork involved and no medical underwriting. Players simply need to respond to the COBRA offering within 60 days and pay the premiums in order to elect and maintain coverage.

2. Individual Insurance Policy. Although the market for individual coverage is different in every state, these policies generally require medical underwriting, and factors such as age, health status, pre-existing conditions and injuries can be serious obstacles. For players unable to obtain an insurance policy because of pre-existing conditions, many states have one that will not require medical review, but it will be more expensive. “Players who feel they will need an individual policy down the road may want to consider exhausting their COBRA coverage first,” said Williams. “There is some HIPAA protection in the individual market for pre-existing condition limitations if a player completely exhausts his COBRA and does not have a break in coverage for more than 63 days.”

Players can search for an individual policy by contacting insurance carriers directly or by contacting an insurance broker for assistance in choosing a plan.

“It is important to start the search for an individual policy early,” said Williams, “because the process can take several weeks, and there is a chance players will need to go through more than one carrier before they find an appropriate policy.”

For Bailey, who is currently earning his teaching credentials, the decision about future coverage was easy. “I hope to have a job by the time my insurance ends this summer,” he said. “If not I’ll probably elect the COBRA coverage.”

Players seeking more information may contact the insurance plan at (800) 635-9671, or the NFLPA benefits department. Continuing Veterans needing to update their address or to add/remove dependents should contact the plan administrator at (888) 635-0234.