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Affordable Health Insurance without Limits: The Age of Healthcare Reform
What's your lifetime limit? We're talking about your health insurance, of course. Most people don't even know they have a dollar limit on their affordable health insurance plan – until they reach it. With the high cost of medical care today, hitting a limit of $1 million or more is much easier than you think. In fact, just one bout of cancer or major surgery can put you closer to that dollar amount than you ever thought possible.
The problem with lifetime and annual limits imposed by affordable health insurance plans is that the insurance coverage tends to give out right when you need it most. There is story after story of Americans suddenly losing the health care they need because insurance coverage is no longer available.
The good news is that things are about to change because healthcare reform is doing away with these limits so people can get the quality care they need, no matter how much it costs.
Lifetime Limits
For affordable health insurance plans originated or renewed after September 23, 2010, no more lifetime limits will be imposed on insurance policies. This means that policy holders can get essential health care services, no matter how costly they might get. For those diagnosed with a devastating illness or requiring major surgery, this is good news indeed. For those dealing with chronic diseases that could easily run up a big tab over many years of treatment, the news is even better.
Bear in mind that this provision only applies to essential medical services. Non-essential services are still subject to limits imposed by your affordable health insurance plan. If you are unsure what constitutes essential and non-essential care, talk to your plan administrator or health care provider. The lifetime limits ban applies to nearly every type of affordable health insurance program – whether you get your insurance coverage from your employer or purchase it on your own.
Annual Limits
Annual limits can be even more trying for some patients, since every year may bring more medical bills above and beyond the amount imposed by the insurance company. While these limits will not go away as quickly as the lifetime limits will, there will be some regulations on annual limits until they are finally phased out completely in 2014.
According to the healthcare reform phase-out, annual limits will follow these guidelines:
•A minimum limit of $750,000 for plan years beginning on or after September 23, 2010 and before September 23, 2011
•A minimum of $1.25 million for plan years beginning on or after September 23, 2011 and before September 23, 2012
•A limit no lower than $2 million for plan years beginning on or after September 23, 2012 and before January 1, 2014
•No annual dollar limit after January 1, 2014
While annual and lifetime limits were a great way for insurance companies to save a bundle on their sickest clients, they weren't so helpful for those in desperate need of affordable health insurance. Thanks to current healthcare reform, medical coverage will protect those who need it most, rather than taking away benefits at a most difficult time of life.
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