Health Insurance Denials As High As 70%

Maybe some companies are trying to get their denials in before health care reform takes effect in 2014, but many are issuing health insurance denials at an all-time high level.  According to a USA Today article by Phil Galewitz of Kaiser Health News, “Health insurance denial rates (are) routinely 20%, data show.”  Companies like Aultcare health insurance work hard to keep their denials for health insurance coverage low, but it can be hard when more and more applicants have pre-existing conditions related to obesity and other seemingly manageable conditions.

America’s Health Insurance Plans (AHIP) found data in 2009 suggesting that 87% of Americans who apply for individual health insurance are accepted.  That figure does include those who are denied their original request and are given an alternate plan or charged more for insurance than they thought.  Current information shows that more than 20% of applicants are denied coverage for a wide range of reasons.  Different health insurance companies have different denial rates state by state and each state has a large variation in the denial rates of different companies.  Aetna denies 15% of applicants in Georgia, while Kaiser Permanente denies 47% of applicants in the same state.

The highest denial rate of 70% went to John Alden health insurance, a branch of Assurant Health.  Assurant points out that these statistics can be a bit misleading, however.  The denial rate includes applicants who are offered a plan in which they qualify for an additional cost and those who apply, but are out of the company’s coverage area.  Regardless of the reason for the denial, many Americans are having a hard time finding individual health insurance and have high hopes that the 2014 ban of denying coverage for pre-existing conditions will really help them.  Click here to see if you qualify for the individual health insurance of your choice.

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