Selling Insurance Against Their Own Bad Practices

Denying individuals coverage because they have a medical problem (‘pre-existing condition’) is one of the health insurance practices that most angers people. So what is UnitedHealth, the country’s second largest health insurance company, doing about it? Selling insurance to guarantee the individual has the ability to buy health insurance regardless of pre-existing conditions in the future.

The New York Times reports [1] that this is a “first of its kind” product:

“Called UnitedHealth Continuity, the product is not actual medical insurance, but is aimed at people who may have insurance now but are worried they may lose it — and may not be able to obtain replacement insurance on their own. They may expect to retire early, for example, before they qualify for Medicare. Or they are worried about the possibility of losing their job and their health coverage. People who are already sick will generally not be eligible for the new product. Those who do pass a medical review, will pay 20 percent each month of the current premium on an individual policy to reserve the right to be insured under the plan at some point in the future...”

Paying a monthly premium to receive no services but just get a guarantee that the company will sell you their product in the future? That is a truly deafening alarm that health care reform is needed NOW!

But that is exactly what UnitedHealth is betting won’t happen. NPR quotes [2] Robert Laszewski, a health insurance industry consultant, who says:

“The product also assumes that efforts to overhaul the nation's health care system—including promises made by President-elect Barack Obama to ban the use of pre-existing condition exclusions in health insurance—will not come to pass.”

Let’s make sure they lose that bet. Tell us which side you are on! [3] Are you with us for a guarantee of quality affordable health care for all? Or are you for leaving us on our own to buy private health insurance under insurance company rules?