UnitedHealth Sells Health Insurance Option
In an attempt to satisfy consumers who are worried they might not be able to buy health insurance in the future UnitedHealth has a new product:
For these economically uncertain times, the UnitedHealth Group has a first-of-its-kind product: the right to buy an individual health policy at some point in the future even if you become sick.
Called UnitedHealth Continuity, the product is not actual medical insurance, but is aimed at people who may have insurance now but are worried they might lose it — and might not be able to obtain it on their own. They may expect retire to 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. For those who do pass a medical review, they will pay 20 percent each month of the current premium on the individual policy to reserve the right to be insured under the plan at some point in the future.
“What this product is designed to do, for a very modest premium, is to essentially protect your insurability for the future,” said Richard A. Collins, the president of UnitedHealth’s individual insurance products, who says he is the first policy holder. His monthly fee is $50.
Think of it as a health insurance option. Like a stock option the buyer has the right (but not the obligation) to purchase health insurance in the future. The risk is government getting more involved in the health care economy by mandating coverage making the option worthless.
“UnitedHealth to Insure the Right to Insurance”
