South Carolinians may or may not like the Affordable Care Act, also known as Obamacare, but few would argue that it has put health care and South Carolina health insurance within reach of people who haven’t had it in the past. Some of it’s new rules have helped patients who were denied coverage in the past.
No more denial of coverage
It wasn’t unusual for health insurance plans to deny benefits to patients with pre-existing conditions. This is no longer the case. It is against the law for a health insurance company to deny a new application for a pre-existing condition. This is a huge benefit for people who were cut out of coverage in the past.
Related to that, a new insurer may not refuse to cover a child with a chronic illness. In the past, many parents were left in a bind when their chronically ill child was denied coverage. The Affordable Care Act makes certain that will not happen in the future.
It wasn’t uncommon for companies to drop coverage for someone who got sick so claims would not have to be paid. This is against the law now. The same is true for insurance companies who would limit the amount of insurance benefit provided for a specific condition. That is now illegal.
Of course, many South Carolina Health Insurance companies behaved in ethical ways, but now, those that do not will be breaking the law.
Adding adult children and parents’ health insurance
In an unusual move, you can now add any adult child to your policy—up to age 26. It doesn’t matter if they are married. They do not have to live with you or even in the same town. It’s not free, but it is coverage and especially helpful to adult children who are still in school and unable to get group coverage from an employer.
In the past, rate hikes were sprung as surprises, but now, the Act requires that insurers get state approval for any rate increases. This means you’ll have some warning and can seek out a company that you can better afford.
Another bone of contention used to be excessive executive pay. Today, the Act mandates that South Carolina health insurance companies spend at least 80 percent of premiums on the provision of medical services, not on management pay or on advertising. If they run afoul of this, they have to pay overages back to policyholders. Some customers have already gotten checks.