In today’s Washington Post, Christopher Lee writes “More Hitting Cost Limit on Health Benefits” and discusses the lifetime maximum benefit on health insurance policy, the lower limit on transplants, and the ways that people are dealing with this issue (and in some cases not making the necessary choices). There are a couple of of other major dangers when buying health insurance that are related to this article, but not mentioned.
I think that people should try to buy a health insurance policy with unlimited lifetime benefits - when they can afford it. It is better to have some benefits than no benefits, so if unlimited benefits can’t fit into the budget, get what you can, and then get more when possible. But there are plenty of offerings that don’t have this level of coverage, and some of them are more affordable than unlimited benefits.
Here are some additional dangers:
- Annual maximums. This one amazes me, but it is available in the market at a lower cost. You have a maximum annual benefit that runs out at perhaps $100,000. That’s it in a given year. You pay everything else.
- Supplementary and non-comprehensive insurance. These two types of products may be the only thing purchased by people who don’t know any different, who are dealing with a shady agent, or don’t want to pay for more coverage.
- Pre-existing conditions. If you’ve got a problem, then it’s hard to get coverage, or affordable coverage. This one gets people frequently, when it is too late to buy better health insurance at the best rates.
There are more. And many other things to know and learn. Read this blog, visit our health insurance book and resources website, and read my health insurance book to do the best you can when buying health insurance.
Jonathan Pletzke is a consumer expert on health insurance and author of the health insurance book Get a Good Deal on Your Health Insurance Without Getting Ripped-Off, available online and at bookstores nationally. Additional details can be found at the consumers health insurance book and resources website www.BestHealthInsuranceBook.com. Copyright 2007-2008 Aji Publishing.
3 responses so far ↓
I have never seen a health insurance policy with unlimited lifetime benefits. I am sure they would cost a fortune, if one truly existed.
Since health insurance is regulated and sold at the state level, what is available in each state varies. It is also possible that unless you get information from each company, and focus on specific details, that this would be an elusive goal. My family has an unlimited health insurance in North Carolina, and we have an excellent rate. I found that there are good products in all price ranges, and that there is not a strong correlation between high price and high quality. In fact, our unlimited lifetime with no annual limit policy is from a top quality insurer and is at the lower end of available premiums. I found this to be a pleasant surprise.
My brother in California has Kaiser Permanente, and there is no lifetime max on his.