Useful information on health insurance portability

By the time you must have finished reading this post, you will have a better idea of what health insurance portability is, what it entails, and how you can go about achieving it, and some it's benefits. The health insurance portability is  system or process whereby you can easily move forward all the benefits of your old health insurance account to a new one. It is an option provided to you by the health insurance provider, and it is just similar to the bank account and mobile number portability.

In all parts of the world, just like Nigeria, there exist various health insurance providers which their job is to fulfil the health requirements of millions of people. But just like the saying goes "human needs are insatiable", this alone prompts some set of people to become unsatisfied with the services of their current health insurance policy. They may prefer the policy of another health insurance company and feel like switching over to them. The Insurance Regulatory and Development Authority (IRDA) has therefore introduced  a new concept of the health insurance portability.
health insurance portability act between a policyholder and an insurer

When is the right time to port to a different Health insurance provider?

Satisfaction in whatsoever dealings you indulge is key. When you discover that you are no longer getting the satisfaction you deserve from your current health insurance plan, then i guess it is time to move on. Look for a better alternative. The following are some points you should bear in mind that can easily trigger your decision when to go for a the portability option:

Extra coverage
If you discover that your current health insurance provider may not be capable of offering a sufficient amount of coverage for any specific issues. Then i think it is better you opt for a new health insurance company that can cater for the additional coverage. 

Hidden rules
Try as much as possible to search for transparency whenever you are selecting a health insurance provider. Hidden clauses can end up becoming a major issue whenever you want to change a provider. Always choose a health insurance provider that is transparent enough in nature, having no hidden clauses. 

Disappointed service
If your health insurance provider is not offering the right services you deserve, nor are they fulfilling your expectations, then you should consider switching to another service provider. It makes no sense holding on to a particular health insurance provider if they cannot provide a quality service. 

Specialized provider
You may currently be associated with  general health insurance provider. You can easily opt for a specialized service by changing your health insurance provider. 

Better offers
You can easily change your health insurance provider when you come across a better offer. For example, if you are paying for the services which can easily be available for a cheaper rate with another provider, then it is  better decision to switch.

Slow claim settlements
If your current health insurance provider is offering slow claim settlements, you can surely go for a health insurance portability. 

 What are the benefits of health insurance portability?

1. Low premiums
Some health insurance providers may be offering lower premiums with the existing benefits. This provides the policy holders and opportunity to save money.

2. Personalized policy
The health insurance portability provides a medium that allows the customization of a policy according to the health requirements of the policy holder. If the lifestyle changes during the policy period, like if there is any additional cover required or if some new nominees are required to be added, then the portability option can be very helpful.

3. Transparency
It allows a policy holder to move to a new plan where transparency can be observed.

4. Time bound exclusions absent
As time bound exclusions are not present, the policyholders are not required to worry about this when portability occurs.

5. New sum insured
After the health insurance portability, the current sum insured is added to the accrued bonus for obtaining a new sum insured. During the portability, the no claim bonus can also be added to the sum insured. 

7. Fast claim settlement
Some health insurance companies may settle the claim in a very slow manner. The portability can allow the option for moving from one company to the other for faster settlements. 

8. Continuation of benefits
Even after the portability process, you will still enjoy the benefits of the old policy and it will be forwarded to the new policy. 

9. Bonus
If there are any bonus amounts in your existing policy, it will smoothly be added with the new policy after the portability process. 

Some limitations of the health insurance portability

1. High premiums
Sometimes, when you want additional benefits, additional premiums are also added after the portability.

2. Loss of benefits
If you are moving from the group insurance or the family floater plans to the single health insurance plan, you may suffer from some loss of benefits, compared with the current insurance policy.

3. Time factor
The portability option is only available at the time the policy is due for renewal. Which simply means that you cannot go for a portability at any time you want, or during the middle of a policy period. 

Process of performing the health insurance portability

  • At first the policy holder can apply for the portability option, if all the premiums of the current policy have been paid on time devoid of any breaks. The policy holder will have to apply at least 45 days before the renewal date of the current policy.
  • The required documents will have to be submitted with the application form in the new insurance company
  • Within 7 days, the new company will accumulate data about the medical history of the policy holder and the benefits occurred by the existing benefits.
  • Depending upon your history and the claim records, your application can either get accepted or rejected.
  • If finally your proposal has been accepted, all the existing benefits will be transferred to the new plan.

In conclusion, buying a portability option is similar to buying a new policy. Before switching to this particular option, you must check whether the new policy will be able to fulfil your health requirements or not.

Useful information on health insurance portability Reviewed by Chibuzor Aguwa on 8/26/2016 10:30:00 am Rating: 5

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