The maximum benefit limits under medical insurance plans for an individual’s lifetime have been eliminated under the Affordable Care Act.
“For years, Americans with lifetime caps imposed on their health insurance benefits have had to live with the fear that if an illness or accident happened, they could max out their health coverage when they needed it the most,” said Secretary Sebelius of Health and Human Services. “Now, because of the health care law, they no longer have to live in fear of that happening.”
A new report was released today on how the health reform law has eliminated lifetime limits on coverage for more than 105 million Americans. Before health reform, many Americans with serious illnesses such as cancer risked hitting the lifetime limit on the dollar amount their insurance companies would cover for their health care benefits. The end of lifetime limits is one of many new consumer rights and protections in the law for Americans nationwide. Maximum benefits are now unlimited and there is no dollar cap.
While some health plans provided coverage without dollar limits on lifetime benefits, 105 million Americans were previously in health plans that had lifetime limits. HHS estimates that 70 million people in large employer plans, 25 million people in small employer plans, and 10 million people with individually purchased health insurance had lifetime limits on their health benefits prior to the passage of the Affordable Care Act.
Source: US Health and Human Services, News Release – March 5, 2012: Health reform law ends lifetime limits for 105 million Americans