Topic Paper #2

Topic Paper #2

Adam Ingram

MSAH 6500

Prof. Paul Longenecker

February 9, 2016

1

Topic Paper #2

Critical Illness Insurance

Critical illness insurance is becoming more of the insurance buying norm these days. As

the Affordable Care Act (ACA) is cutting down premium health insurance plans- dubbed

‘Cadillac Plans’- many American’s are having to go outside of their regular plans just to have the

certainty that they will be fully covered in lieu of a, so aptly named, critical illnesses. Some

examples of these critical ailments are those such as: heart attacks, strokes, multiple sclerosis

(MS), Parkinsons, severe accidents with physical disability outcomes, and many more (Sharratt,

2016). Critical illness insurance started off in the 1980s as ‘dreaded disease insurance,’ coined by

a Dr. Marius Barnard, a South African physician who was motivated by the financial hardship he

saw his patients suffer after he treated their critical ailments- being a cardiac surgeon he saw

many severe and, thus, costly procedures (Health Insurance, 1996). Critical illness insurance is

an important topic to discuss because as the current health care system continues to amass major

renovation possibilities, especially with the upcoming presidential election, as well as, the

current congressional standing, the idea that major expense procedures and medications may not

be covered, or covered just barely, is a scary thought to many Americans. Critical illness

insurance is a safety-net, per say- it’s there to be used in the worst health care case scenario- and

many people believe that the extra $850 (USD) is worth the peace of mind should anything, like

a heart attack or stroke, happen (Sharratt, 2016). Personally, I believe in critical illness insurance

because it’s better to be safe than broke; however, it’s ridiculous that this is needed and regular

health insurance plans don’t include options with amenities like critical illness insurance options.

Over the next two years, as President Obama leaves office, it will be interesting to see what

becomes of the ACA and critical illness insurance- if they stay separate completely, the ACA

2

Topic Paper #2

implements a form of critical illness insurance, or the ACA does away with critical illness

insurance.

3

Topic Paper #2

References

McKie, R. (2007, October). Choose Life. CoverTen, 22-25.

Personal current accounts in the UK - oft1005. (n.d.). Retrieved February 08, 2016, from

http://webarchive.nationalarchives.gov.uk/20140402142426/http:/www.oft.gov.uk/

shared_oft/reports/financial_products/OFT1005.pdf

Pneumocystis Pneumonia --- Los Angeles. (2001, May 16). Retrieved February 08, 2016, from

http://www.cdc.gov/mmwr/preview/mmwrhtml/june_5.htm

Sharratt, A. (2016, January 14). Is critical illness insurance worth it? Retrieved February 08,

2016, from http://www.theglobeandmail.com/globe-investor/retirement/retire-health/is-

critical-illness-insurance-worth-it/article28195723/

Teitelbaum, J. B., & Wilensky, S. E. (2013). Essentials of health policy and law. Sudbury, MA:

Jones & Bartlett Learning.

4