Friday, December 19, 2008

An Insurance Policy For Your Health Insurance

By Ethan Kalvin

One of the largest health insurance companies in the country, UnitedHealth, has introduced a new kind of insurance policy, one that insures your health insurance policy. In other words, this plan insures the possession of your health insurance.

UnitedHealth is calling the product Continuity, as reported by The New York Times. What this product is designed to do, for a very modest premium, is to essentially protect your insurability for the future, said one UnitedHealth president.

Let's list a few red flags that go up. Continuity won't protect you against your premiums increasing as you get older. The premiums for Continuity will increase over time. You have to qualify for Continuity just like regular coverage, and you may be denied based on your health status. This won't help you get coverage if you have a pre-existing health condition. Most states have guaranteed renewability, which means an insurer can't cancel your policy anyway if you become sick or get injured. This coverage costs as much as 20 percent of your health insurance premium.

This plan doesn't sound like it is going to have much appeal for the masses. Continuity could be a good option for some, like contract workers for instance, who expect coverage gaps. But as a recent interview with an insurance broker revealed, it offers limited appeal for most.

Is Continuity really a health insurance plan? No its not, as reported in the Times article. And if not, then what's the point? Since most states already cover what it is protecting, then apparently for most of us will there will be no need for it. Those looking for that extra bit of comfort regarding their insurance will have to decide for themselves whether Continuity is for them.

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