Oxner Thomas + Permar Blog

A New Insurance Product For Tough Times

The New York Times has recently reported that UnitedHealth may soon be offering a new insurance product for those people concerned about losing their health insurance.  The new policy will allow current customers who have UnitedHealth coverage to pay an extra twenty percent of their monthly premium in order to guarantee their right to buy health insurance in the future.

Most people in the United States receive health insurance as a benefit of their employment.  Once these people lose their jobs (not hard to imagine considering the current economic times), they often lose their health insurance.  Options exist, such as Cobra coverage or individual coverage.  These options are usually expensive - especially if they are unemployed.  Individuals on Social Security disability are eligible for Medicare after two years, but there are few good options during this time period.  Most companies have rules that allow them to avoid paying for costly pre-existing conditions.

There are still not too many details about these programs.  However, it is an interesting concept for people who are approaching the end of their working days and know they will not be able to cover themselves as individuals once they start working.  If the new Presidential Administration really tackles healthcare reform, then new products like the one being considered by UnitedHealth may be unnecessary.