A Healthcare Plan That Turns On and Off

Those concerned over getting healthcare when they retire may soon be worry free. A new health insurance plan offered by United Healthcare’s Golden Rule can be switched “on” and “off“ as the situation permits.

The patent-pending system, Continuity, is the first of its kind, and offers some much-needed assurance in unpredictable times. It allows customers to apply for health insurance while they are healthy, place it in either in an active or inactive state, and use it in the case of retirement, unemployment, or whenever else it is needed.

“For a certain part of the marketplace, we think it will serve as a real solution and that it will meet a real need,” said Continuity representative Ellen Laden.

“People will want it as a part of their retirement decision-making. They will want to know that when they retire they will have healthcare coverage and that they will get it,” said Laden. “For people whose jobs change a lot and they go in and out of the employer market and the individual market, I think it will serve a real need.”

There is an initial medical underwriting process needed for approval. After passing the initial underwriting, customers are guaranteed coverage. According to Laden, it eliminates the concern of not being able to receive health insurance further down the road in the case of health issues that may arise.

“You then have that health plan to activate is whenever you need it,” she said. “You do not have to ever—if you get it when you’re forty and at the age of fifty-two you develop severe cardio-vascular disease or diabetes, or have a terrible accident from which you’re disabled and can’t walk—whatever happens to you, once you pass that underwriting, you never have to be underwritten again.”

Continuity is geared towards those who receive health insurance through their workplace or who are self-employed. You can only turn off your insurance in times when you are receiving healthcare through an employer. While it’s turned off the premium fees are temporarily waived, with remaining fees averaging at around 20 percent of the cost of your healthcare plan.

“Maybe if someone is going to go work for a company for a job for two years, they can turn it off for that time and turn it back on once they get back,” Laden said. “All you do is let us know.”

The plan works by giving customers continuous coverage in times when they might be changing jobs or between jobs, to ensure coverage in the case of unemployment or a workplace stopping coverage, or if there is concern of coverage when retirement comes around, due to health issues. There are various plans available.

Some concern has arisen over how long the plan will be useful, as the entire healthcare system in the United States may soon be undergoing changes under President-elect Barack Obama. The benefits offered by the Continuity plan may be unnecessary, as the health insurance industry may soon be providing the same type of coverage at no charge.

During a speech given at the University of Iowa on May 29, 2007, Obama outlined his plan for bringing universal healthcare to U.S. residents. Obama stated, “The very first promise I made on this campaign was that as president, I will sign a universal health care plan into law by the end of my first term in office.”

“My plan begins by covering every American,” said Obama. “If you already have health insurance, the only thing that will change for you under this plan is the amount of money you will spend on premiums. That will be less.”

“If you are one of the 45 million Americans who don’t have health insurance, you will have it after this plan becomes law. No one will be turned away because of a preexisting condition or illness,” he said. “If you cannot afford this insurance, you will receive a subsidy to pay for it. If you have children, they will be covered. If you change jobs, your insurance will go with you.”

Arguments have arisen as to whether Obama’s healthcare plan will accomplish what it is setting out to do. Following a statement made by Obama about cutting premiums by up to $2,500 a year, FactCheck.org, a consumer advocate website for voters, quoted health experts saying that they were skeptical as more that half of the proposed savings would come through the use of electronic health records.

“When we looked into that claim, experts told us it was wishful thinking,” said FactCheck. “Adoption of electronic medical records has been slow among doctors and hospitals. Obama could do much to speed it up, but it’s not clear that he could bring about widespread adoption or reap such large savings from it.”

Regardless of whether Obama’s plan will work and when it will be implemented, Continuity is currently available in 25 states, with coverage in other states to soon be added.