It is not difficult to transfer health insurance coverage from one insurance carrier to another, but there will be many questions to answer about present health conditions and preexisting conditions. The answers to these questions are meant to be reference points which will decide how much a health insurance premium payment will be. Before transferring health insurance companies, however, a person should make sure they understand what sort of guidelines the potential health care policy contains. No two health insurance plans are alike, and the differences can be incredibly important.
Major Medical Plans
When deciding to transfer health insurance policies, an important thing to remember is that not all health insurance policies contain Major Medical plans. It is wise to always try to buy these plans since they will usually pay approximately $2,000,000 in lifetime benefits. Spending several days in a hospital due to something like back surgery could cost someone over $70,000, depending on the amount of care and complications arising from such surgery. If someone only had a regular plan, they may get stuck with paying $10,000 or more.
Health insurance companies will ask about preexisting conditions when you purchase or transfer health insurance policies. A preexisting condition, defined by these companies, is a health issue that existed prior to applying for a new health insurance plan. Many times they will reject applications from people who have a preexisting conditions which is chronic and thereby expensive to treat, such as heart disease, cancer, or Type 2 diabetes. Therefore, when transferring health insurance, ask about the company’s policy regarding preexisting conditions, especially since some may deny coverage for minor ailments.
Sometimes, there are only certain periods of the year when someone can transfer health insurance plans. This varies according to the insurance agency’s policies and these times will be outlined in the policy itself. The times which are selected to allow individuals to transfer or change their health insurance policies are usually referred to as “open enrollment periods,” especially when dealing with employer-sponsored insurance. Other allotted times for policies are those following a qualifying event, such as a new baby, change in marital status, death of a spouse, or adoption.
There should be no waiting period for benefits to take effect when someone elects to transfer health insurance to another carrier, providing they are offering the same or very similar benefits. However, if the new plan has more benefits, they may ask that the person wait for a time before being eligible for these new and extra benefits. The maximum time allowed to wait is based on the age of the person. If the person transferring health insurance plans is under 65, they could possibly wait up to six months; if they are over 65, the maximum waiting period could be 2 years.
Moving to Another State
Moving to another state will probably disrupt your health insurance coverage and promote the need to transfer health insurance to a carrier based in that state. Since health insurance guidelines differ from state to state, an individual contemplating a change of residence or employers should check that state’s health insurance regulations. That way, they can find out which agency has the appropriate policy, whether it is for individual or family health insurance coverage. Researching insurance companies online will provide information and even quotes so that the transfer of health insurance is easier to accomplish.