Health Insurance Articles
How A Lapse Can Affect Family Health Insurance Coverage
2012-01-30
Although the Affordable Care Act that was signed in 2010 aims to make healthcare really available to everyone, certain specific conditions make it more difficult for individuals to gain access to inexpensive medical procedures. A lapse in health insurance coverage for families is one such situation.
The lapse in health insurance coverage for families makes it difficult for a family to find an adequate and affordable policy afterward. It all depends on the duration of the lapse and specifics of state law but the problem could be significant.
The Affordable Care Act will be changing the health insurance and healthcare landscape until 2014. Some changes have already started affecting the functioning of health insurance companies and the provision of affordable policies. The lapse, however, is still seen as a significant problem.
Two major problems stem from a lapse in the health insurance policy. One is that the family will ultimately end up paying much more for a policy that offers worse conditions than the one that has lapsed. A second major problem is that good policies will become unavailable to the family that has experienced a health insurance lapse.
A lapse in health insurance could take place due to numerous reasons. It can be caused by the lack of financial resources, a family member losing a job, or a transitional period in the family itself. Still, alternatives are available for a family that is experiencing such problems. These alternatives are designed especially to prevent the health insurance lapse.
Employers are usually obliged to give individuals an option to extend their group health plan through the Consolidated Omnibus Budget Reconciliation Act or COBRA. Naturally, the same policy purchased through COBRA will cost more than it used to under the group conditions.
Families that have lost their health insurance and are looking for a new option will also have to answer a number of questions about the lapse. Health insurance agencies will look into all the details of the situation before making a final decision.
The health insurance lapse will probably result in some limitations, once a new health insurance plan is provided. It may feature various exclusions. Health insurance companies can no longer deny people with preexisting medical conditions the coverage that they apply for. The policy can, however, come with coverage exclusions for specific conditions and treatments.
A long waiting period before the new family health insurance starts providing full coverage can also be experienced by individuals that have a lapse on record.
A health insurance lapse can affect the family health insurance coverage in numerous negative ways. Acting fast and knowing what alternatives to look for is essential for a restored access to affordable and comprehensive healthcare.
