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Private health insurance companies can put a limit on how much they pay out for specific medical issues. This is known as the annual cap, or annual cut-off. This can be attached to numerous sections of the policy, such as dental and optical visits. Psychiatrists are also usually limited within the clause that addresses this area of mental health.
Once you reach the limit all expenses after that fall upon you. Bills can pile up fast and bury you with debt that may put a family into dire straits. This is an issue that most people hope will never happen. Planning for it doesn’t always help alleviate the visits that are emergencies. Even the best laid plans fail at times due to unforeseen circumstances.
Whether you have reached your limit because of budgeting complications, or because of an accident or illness, you need to be on top of the situation and formulate a plan to prevent over visiting and costly bills. Do not wait until you have gone over the limit before acting. Be ahead of the game and use proactive thought processes rather than reactive ones.
The only way to solve the problem of using up all your private health insurance is to add more to your existing policy, or buy a new one that has a higher cap. You cannot simply buy a new policy and start over. Whatever your current used amount is it will be embedded into the new policy. Basically, this means that if on your current plan you have used $800 out of the $1200 limit your new plan will show you using $800 out of the new policy cap. Therefore, if you already have a good plan with a solid insurer, you are much better off upgrading your current policy.
If you can prevent visits to the doctor or dentist do so. Prevention is the best way to make sure that you do not go over the limits set in your policy. Plan for the year. Make sure that all required visits are scheduled in and subtracted from the actual limit. Keep track of each section and if you notice that your basic needs are over the limits, upgrade immediately. Always plan and allow for emergencies and extra visits.
Most new policies will have a clause of waiting to weeks before making any changes. It may be longer. Read through your policy to know for sure what it says. This is a contract so you should read through it entirely before you sign anything. If you have questions, ask your agent to clarify.
Going over your insurance limits should never be a surprise. Keep track of your amounts and always have a cushion in case something severe does happen. When you choose to go with private health insurance you understand that each company will have different clauses and limits. Do your research before buying. Make sure that the contract allows enough of a cap to ensure that you and your family are covered.