Ban on lifetime health benefit limit

Posted on: Thursday, March 08, 2012

The Department of Health and Human Services recently released a report that will likely come as good news to insurance customers.

HHS notes that under the Affordable Care Act, insurers are no longer able to install a lifetime dollar amount limit on health plans. This prohibition went into effect on September 23, 2010.

While this might not come as news for insurance agents, it may for consumers, who may be under the impression lifetime limits are permissible. In fact, according to a recent Kaiser Family Foundation Employer Health Benefits Survey, nearly 60 percent of all workers had some type of lifetime limit on their health insurance plan in 2009. For individuals who purchased their own plan, 89 percent had a lifetime benefit limit.

"Overall, we estimated that 70 million persons in large employer plans, 25 million persons in small employer plans, and 10 million persons with individually purchased health insurance had lifetime limits on their health benefits prior to the passage of the Affordable Care Act," said HHS. "These 105 million Americans now enjoy improved coverage without lifetime limits."

This knowledge may help agents turn more insurance leads into insurance sales opportunities.

Posted In: Insurance News, Health Insurance

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