Apparently UnitedHealthcare now sells an insurance product that gives someone the right to buy an individual health policy at some point in the future even if he or she becomes sick. The NY Times article describing the product is here.
This "right" costs 20% of the currently premium, payable monthly.
So, if (1) you are not now in the individual market, (2) you can pass a medical screen now, (3) you think that you might need to purchase health insurance in the individual market at some point in the future, (4) you plan to reside in a state where United will (hopefully) be selling in
the individual market when your need for individual insurance arises, (5) you anticipate that you will NOT pass the medical screen when you anticipate needing the insurance, (6) there will be no other viable insurance options available to you when anticipate needing the insurance in the future, and (7) have enough spare cash to pay 20% of the current premium for an individual policy every month (which will be subject to annual increases based on trend, age, etc., depending on the state you reside in) for an indefinite period of time, then this looks to be a really good deal for you.
Once they sell a bunch of these options, maybe UnitedHealthcare could package them into some kind of elaborately structured investment instrument, just like the collateralized debt obligations (the ones made up of all those crappy mortgages) that AIG, in turn, sold all those credit default swaps for!
Thursday, December 4, 2008
UnitedHealthcare offers an option to buy an individual health policy in the future
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