Know Your Health Coverage - Read The Fine Print

Read the "Fine Print" - a friend, relative or business associate undoubtedly shared this pearl of wisdom with you over the years - and it is especially true as regards any kind of heath insurance coverage. The language in heath coverage can be very complex, and even consumers who take the time to read all of the "fine print" of their health insurance policy (and studies have shown that many people do not) - are not always clear on exactly what the limits of their coverage are. Case in point, the Consumers Union, the organization that publishes the well-known "Consumer Reports", relates a story of a family in California who purchased what they thought to be a Chemotherapy Rider, which would cover the expensive treatment for a family member known to have cancer that was in remission, but could conceivably need the chemo treatments in the future. Unfortunately the husband's cancer returned and it was only then that to the dismay of the family, they discovered their coverage was limited to only $1000.00 per treatment. Yet the treatments cost almost 20 times that amount. Eventually, the gentleman passed away, and his widow was left with almost a half a million dollars in medical bills. A large price to pay for not full understanding the limits of health coverage.

This story is far from a unique one, in fact data from a published study indicates that for the years 2003 and 2004, just over 50 percent of all personal bankruptcies were the result of medical debt by those with health insurance coverage. It is stories like this one that have prompted legislators to take action, and Minnesota Senator Mark Dayton has introduced a bill that would require Insurers more clearly spell out loopholes and exclusions in heath insurance policies at the beginning of the policy documents instead part of the so -called "fine print" within "Terms & Conditions" at the end. The proposed bill would also require that policies are written on a more comprehensible level. Until such a bill passes, consumer advocates and insurance professionals alike agree that it is best to read your policy at length, before you purchase it. Be sure you are aware of all the exclusions and limitations of your health coverage - do not be afraid to ask questions, any reputable agent, like those you will find on will be glad to answer them for you. Also most companies will give you a 10 day period to review all of your health coverage documents, within which you can cancel the policy without at any penalties and get any deposits or premiums made fully refunded - use that time for what it was intended and make sure you understand all the details of your health insurance coverage. Consumer Advocates also suggest the flowing even after when reviewing the "Fine Print" of a health insurance policy.

• Make sure the premiums are the same for at least a period of six months; some insurers will offer really good introductory rates that will then increase significantly in only a few months
• Check for the reliability and rating of the company with a rating agency like Standard & Poor's, or AM Best Company