What are the precedents for health insurance shutdowns

Author: Xiaodong

Links:/question/59710436/answer/168837672

Source: Knowledge

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The questioner's question would be to check if you can get a renewable health insurance policy, and you are worried that the health insurance policy cannot be renewed due to discontinuation.

Actually, all medical insurance is short-term, one year to pay, one year to cover one year. Expecting to get long-term coverage with a short-term insurance policy is inherently unrealistic. That said, is there any precedent for the discontinuation of medical insurance? The answer is yes, and in more than one case.

Just a few examples

High-end medical insurance: BUPA Premier Global Medical Insurance, discontinued in March 2016; Ping An Dignity Life Medical Insurance, discontinued in May 2015; China Merchants Trust Huanqiu Supreme C, discontinued in January 2016

Mid-range medical insurance: Taikang Dignity Health Insurance, discontinued in June 2016; PICC Health Protection Specialist Hospitalization Expenses Medical Insurance (Promotional Version), which was discontinued in December 2014

General hospitalization insurance: PICC Life Insurance Additional Hospitalization Expenses Medical Insurance, which was discontinued in June 2010; Guoshou Additional Care for Life Long-Term Medical Insurance, which was discontinued in April 2017, and so on

Medical insurance was discontinued either because it didn't comply with the regulatory requirements or in order to launch a better cost-effective products, but more often it is due to the fact that the products have too many claims and the insurer cannot make money.

The question we should be more concerned about is whether old customers can still renew their policies after the products are discontinued? Or will they be able to buy a new, upgraded product directly?

At present, insurance companies will launch new products after stopping the sale of a certain medical insurance, but some can allow old customers to buy directly, no waiting period and no need to fill in the health notification at the time of renewal (e.g., the customer in the purchase of Ping An E Sang Insurance 2016 after the subsequent insurance to change to Ping An E Sang Insurance 2017), while some need to be re-enrolled in filling in the truthfulness of the notification before they can be; some explicitly stated that after the suspension of the sale of the product will no longer be renewed (e.g. Zhong An Dignity E Sheng 2017), and some verbalized that the policy could still be renewed after the cessation of sale (e.g. Zhong An Dignity E Sheng 2016).

What should be reminded, however, is that regardless of whether the insurer guarantees renewal of old customers after demonetization, the significant increase in premiums after renewal is absolute. The reason is simple: after the cessation of sales, as the insured gets older and sicker, the payouts will increase, and with no new customers to add to the premiums, insurers will have no choice but to balance the shortfall in payouts by sharply increasing annual premiums.

All in all, commercial medical insurance is a short-term protection, although some individual companies have promised to upgrade to a new product even if they stop selling it, but this is after all a company's later decision, which can't be expressed in black and white at the beginning of the customer's purchase, so it's contradictory to put long-term protection on a short-term insurance policy. Instead of obsessing over whether to stop selling and whether to guarantee the renewal after the stop selling, it is better to pick a protection more appropriate first to buy before, want to get long-term protection, or to critical illness insurance is appropriate.