Health Insurance Companies Pressured to Boost CoverageJuly 2008
While we're all aware of the many risks associated with being uninsured, it's only recently that the dangers of being under-insured are being broadcast in the media, creating a lot of pressure on
health insurance companies to offer better coverage at lower prices.
One example is the little known phenomenon of insurance caps, which has recently been found to have a major impact on family health insurance coverage. Many health insurance companies have a lifetime cap on their policies that can range as low as one million dollars.
And while one million dollars seems like a lot, in today's world of high-cost medical care parents with a seriously sick child can discover that their family health insurance doesn't cover them when they need it most.
In Ontario, California's
Daily Bulletin there's a recent story of a 20-month old child who ran through a one million dollar family health insurance cap in less than a month, after being diagnosed with a heart condition that would require a transplant.
Other sad stories involve sick individuals whose coverage ran out before they could get the treatment they needed to save their lives.
Several patient advocacy groups are campaigning to force health insurance companies to boost the caps, or do away with them altogether. Congress is also considering two bills that would do the same.
But health insurance companies argue that keeping the caps allows them to offer
family health insurance - among other types of coverage - at lower rates and with more variety in their plans.
Facts on:
Family Health Insurance Caps
Did you know...
22% of insurance plans have lifetime caps of less than $2 million dollars?
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They argue that the problem lies in overpriced medical care and doctors who charge too much already.
Regardless, by capping insurance coverage too many people are finding themselves without any insurance at all at a time when they need it more than ever. When shopping for any type of insurance coverage it would be wise to ask your agent if there are any lifetime caps on your coverage, and to avoid any policies with caps that are lower than two million dollars.
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