Spending Limits
KEY PROVISION: Insurance companies cannot limit their expenditures for a child on their health plan over a lifetime. Annual limits will no longer be allowed after the year 2014.
Under the Affordable Care Act, insurance companies can no longer put a dollar limit on the benefits a child may receive through a health insurance plan over the child's lifetime.
Why this is important
Lifetime and annual limits for children with conditions, such as cancer, that require frequent health care visits and treatments present a barrier to the care they need. These children can run out of coverage and leave the family with major expenses to pay on their own. The high cost of paying for this health care can send families into debt.
What this means in New Hampshire
In New Hampshire, this provision became law for health plans starting on or after September 23, 2010. Starting in September 2010, plans cannot impose an annual limit of less than $750,000. In 2011, the limit cannot be less than $1.25 million, and in 2012 and 2013, it cannot be less than $2 million. Annual limits will be eliminated completely by the year 2014. Some plans, however, are not required to comply with the new law. If you would like additional information about which plans are and are not required to comply, visit here:
