An Insurance Policy That Insures Your Health Insurance Policy

An Insurance Policy That Insures Your Health Insurance Policy in Individual Health Insurance

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,” reported 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.

At first glance, it just doesn’t seem like this product is worth anything.

An insurance broker interviewed by the Times admitted Continuity was of limited appeal, but it could be useful for some.

For example, the broker mentioned, Continuity could be a good option for, “someone who expects to work on contract for employers that offer group health insurance benefits but who anticipates gaps in that coverage.”

But Continuity isn’t a health insurance plan, as reported in the Times article, so what would be the point? What is the need for it? If there are gaps in coverage in an employer’s plan, Continuity won’t offer any supplemental coverage.

Are we missing something here?

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