Legislation Would Increase Minimum Lifetime Benefit Caps On Group Health Plans

Main Category: Health Insurance / Medical Insurance
Article Date: 30 Jul 2008 - 11:00 PDT

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Rep. Anna Eshoo (D-Calif.) recently introduced a bill (HR 6528) that would increase the lifetime insurance caps for people enrolled in group health plans, CQ HealthBeat reports. The legislation -- co-sponsored by Reps. Jim Langevin (D-R.I.), Betty Sutton (D-Ohio) and Jason Altmire (D-Pa.) -- would raise the minimum lifetime benefits limits to $5 million for the first two years of coverage and $10 million for the third and fourth years. More than 50% of covered workers in employer-sponsored health plans have lifetime coverage limits for single coverage, according to a survey from the Kaiser Family Foundation and Health Research and Educational Trust.

In a media statement, Eshoo said that reaching insurance caps can pose serious dangers for patients with disabilities or chronic diseases. She said, "Increasing the minimum lifetime cap will result in a net savings for federal and state governments because individuals with high medical costs can maintain private health insurance," adding, "My legislation will protect individuals who are struggling to pay for the expensive medical treatments that are a result of a disability or chronic illness."

Robert Zirkelbach, a spokesperson for America's Health Insurance Plans, said the organization opposes the bill because it could raise patients' health premium rates and does not address rising health care costs. He said, "The real issue is rising health care costs and what we can do to address this" (Parnass, CQ HealthBeat, 7/28).

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