Health Insurance Articles
What Riders Are And How They Affect Health Insurance Coverage
2010-07-16
In an effort to keep the cost of health insurance coverage low, providers will add health insurance riders, or additional policies to the standard plan. During the application process, health insurance providers will examine a person's medical history. If the person has a pre-existing medical condition, the health insurance provider may add a rider.
A pre-existing medical condition is any health problem a person has before applying for a new health insurance plan. This can be anything from a neck injury to pregnancy to asthma, or even working in a hazardous location. Each health insurance rider will vary between providers and medical conditions, although most riders are an extra amount added to an individual's premium, or what a person pays each month for his health insurance.
Health insurance riders allow people with pre-existing conditions to receive coverage. All health insurance providers are concerned about finances. Providers aim to decrease the risk of paying expensive medical bills and try to limit how much healthy people are paying for someone else's medical condition through higher premiums. Premiums are paid to ensure there will be enough money to cover the cost of medical emergencies.
Health insurance policies are written according to state law, and almost all riders are amendments. Health insurance riders provide care for people's individual needs. The name "rider" derives from the fact that any additional policy is not an independent policy; rather, they are only added on to, or ride with, the standard policy. Usually, a rider will not be included in the contract; it will be typed on a separate sheet of paper. Riders can add, include, or exclude certain benefits at an extra cost.
With most health insurance riders, health insurance providers will lower the amount they provide for surgeries, prescriptions, and other care for the pre-existing medical conditions. Riders will vary depending upon the condition. For example, a multiple indemnity rider will increase the benefits paid for accidental death or dismemberment. A waiver of premium rider provides that a person will not have to pay premiums if he becomes disabled. An impairment rider means that the benefits normally offered are excluded due to a pre-existing condition. A return of premium rider will refund all premiums paid if a person has not filed a claim by a certain age. Finally, a transplant benefit rider raises the financial limits in case of a needed organ transplant.
Though a person may have to pay more, riders allow health insurance providers to create a health care plan to meet an individual's specific needs. Health insurance riders also keep the cost of health insurance low for healthy people and ensure the providers will have the finances to take care of medical emergencies.
