Does Your Health Insurance Need an Insurance Policy?

UnitedHealth, one of the country’s largest insurers, has introduced a new kind of policy that insures your health insurance policy. That’s something, huh? Insurance for your insurance.

UnitedHealth is calling the product Continuity, as reported by The New York Times. What this product is designed to do, for a very modest premium, is to essentially protect your insurability for the future, said one UnitedHealth president.

Given that most states have guaranteed renewability, which means that your policy can’t be cancelled if you get sick or injured, Continuity may not be the right remedy at the right time. It won’t protect you from health insurance rate increases, and its own premiums will go up over time. And if you have a pre-existing condition you likely won’t get coverage.

On the surface, Continuity doesn’t seem like a good value for the consumer. It could be of particular value for contract workers who expect coverage gaps, but as a recent interview with an insurance broker revealed, it is of limited appeal for most.

As the Times article reported, Continuity isn’t a health insurance plan, so what’s the point? If the protection it offers is already covered by most states, then there apparently is no need for it. Customers will need to examine their own situation and decide for themselves.

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