Health Insurance Portability

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We are living in an era of portability. After the implementation of portability policy in telecommunication industry in which a customer can change the service provider while maintaining the same number, now we are heading towards health insurance portability. In mobile portability, now users are free to go for any service provider which offers them better service without being concern about their old number because they can maintain the same with the new provider also. In telecommunication sector, the concern is network so it was easy to change the provider.

But in health insurance industry where every client is different and every policy is different it is going to be extremely difficult for the companies to manage this portability. It is going to be implemented from July 1, 2011. It will allow customers to move from one company to another but there are many unanswered questions. Like;

• A switching customer can have a history of diseases and claims. Information need to be transferred from existing  service provider to the other companies. How they are going to achieve that?
• There need to be a greater cooperation and data sharing between insurance companies. As of now there is no platform which can be used to enhance cooperation between them.
• If a customer decides to increase the sum assured of the policy while switching insurer, how it is going to be treated?
• Can a customer move from benefit plan to indemnity plan.
• There is a waiting period on all insurance policies which basically ranged from 30 days to 90 days. There is no information if it is going to be applicable on ported policies and how?
• Company and their individual policy may vary in the way they treat pre-existing diseases, there is no clarity on how that is going to be handled if a customer switch insurance company.

Health insurance portability is a very good move in the long term to strengthen the industry and help customers. But it is going to take some time before insurance companies and customers can adjust to this new regime. It is essential for the companies to have greater level of cooperation and data sharing methods to enhance the quality of the process. Process should be made easier for the policy holders to encourage them if they are not satisfied with their existing service provider.

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