Pros and Cons of Health Insurance Portability

Health Insurance Portability Act and Rules

Previously, when you would decide to go ahead with the process of health insurance portability, there would be a loss of benefits like a waiting period for pre-existing diseases.

However, the IRDAI protects the policyholders by allowing them to port their current health insurance to another insurer. Apart from this, the new insurer should allow credit gained by the insured for pre-existing conditions mentioned in the waiting period clause. Such a condition is applicable when porting the medical plan from one provider to the other and when changing the type of medical insurance with the same insurer.

Before Porting Your Health Insurance

Being aware of the rules of health insurance portability plans is just one part of the process. However, understanding the benefits and drawbacks that you may face when porting your medical plan from the old insurer to the new will make it easier for you to complete the process efficiently.

Pros

Continued Waiting Period - You can enjoy continued waiting period benefits when porting your medical insurance from the old insurer to the other. This means that if your current medical plan is for four years and the new insurer has a waiting period of 3 years for specific health conditions. Then, once the 3rd year is completed, you can get coverage for the particular diseases within the waiting period.
No-Claim Bonus Retention - When it comes to the no-claim bonus, it is another benefit that is provided to you. Although you are porting your health insurance from the old insurer to the new one, the no-claim bonus will be added to the new policy without any changes.
Wider Coverage Options - Finding a health plan with broader coverage at an affordable premium is one of the major benefits of porting health insurance in India.

Cons

Porting Restrictions - Porting your medical insurance is possible only at the time of renewal. However, the time before the porting can be helpful in proper research and evaluation.
Minimal Scope of Changes - Understandably, porting your current health insurance plan to a better insurer or plan is to get more benefits. However, there is minimal scope for making too many changes. You might have to purchase a different medical plan in such a situation. It will have its specific premium as well as terms and conditions.
Add-On Premiums - If you have decided to go with a different medical insurance plan with add-on covers like consumable items cover, home care treatment, etc., the premium may also be on the higher side.

Important Things to Remember While Porting Health Insurance

Here are some of the most important things to remember while porting your health insurance:

Premium Amount

Irrespective of which new insurer you are porting to, it is important to understand that a lower premium amount will reduce the scope of cover. Therefore, it is essential to ensure that the cover amount provided for the reduced premium amount is adequate for your healthcare needs. Failing to do so means you would have to pay directly to the hospital without the involvement of your new insurer.
Health Insurance Benefits

Some of the features available in your previous medical plan may be different from the health policy to which you are porting. Therefore, it is understandable that some features might be strictly limited to the old health policy that are not available in the new health policy.

For example, if you have purchased a policy that provides pre-hospitalisation coverage for 60 days and the new insurer provides the cover for 30 days, then this feature cannot be changed. You must take up a new medical plan that includes such a feature.
Policy Sub-limits

It is important to note that each cover within the health insurance you have purchased comes with a sub-limit on the amount that can be claimed. It is, therefore, necessary to check the sub-limit when porting to a new health insurer. Doing so will ensure that the sub-limits do not come as a surprise at the time of claim.

To Conclude

The points mentioned above will help you choose the most suitable medical plan quickly. For assistance, you can speak to our health insurance experts or write to us at care@policybazaar.com. Our experts will help you through your health insurance portability procedure.