Health Insurance Portability: Common Mistakes to Avoid

Your health insurance needs can change over time. Maybe you are looking at a different level of cover, a new policy structure, or simply want to explore other options. If you are considering a switch at renewal, health insurance portability lets you transfer certain credits earned under your existing policy to another insurer, subject to the applicable rules and policy terms. A little attention to the details can help you understand what is being carried forward and what you need to check before making the switch.

What Does Health Insurance Portability Mean?

Health insurance portability is the facility that allows you to move an eligible health insurance policy from one insurer to another at renewal while transferring certain credits from the existing policy. These can include credits relating to pre-existing disease waiting periods and specific waiting periods, subject to the applicable rules. Portability is available for individual, family floater, and group health insurance policies.

Portability is different from migration. Migration refers to moving to another policy with the same insurer, while portability involves moving from one insurer to another.

Are You Starting the Portability Process Too Late?

Current guidelines say that you should apply to the new insurer at least 30 days before the renewal date of your existing policy. The acquiring insurer can obtain your policy and previous claim information from the existing insurer as part of the prescribed process.

Rather than waiting for the renewal date to get close, check your policy schedule and the applicable portability window in advance.

Have You Compared the New Policy with Your Existing One?

Portability does not mean that the new policy will have the same terms as your existing policy. The sum insured, room-rent conditions, co-payment provisions, sub-limits, network hospitals, and other features can differ.

Before deciding, put the two policies side by side and check:

• Sum insured and applicable limits
• Waiting periods and exclusions
• Room-rent and co-payment provisions
• Sub-limits for specific treatments or services
• Network hospitals
• Renewal terms and other policy conditions

Use the policy wording as your main reference rather than relying only on summaries or major features.

Do You Have Your Policy Details Handy?

When you apply for portability, you will need details from your existing policy and information about your previous claims. The new insurer can obtain the relevant policy and claim information from your existing insurer through the prescribed process.

It helps to have your current policy documents and claim records sorted while filling out the portability request. If you are asked for any additional information, check what is required and provide the details as requested.

Conclusion

Changing insurers is also a good time to take another look at your existing health insurance. Check the renewal date, see which credits may carry forward, and compare the terms of the new policy with what you have today.

Once you have gone through these details, read the new policy wording before you make the switch. If something does not make sense, ask the insurer about it rather than relying on an assumption.