Many people with insurance are getting sick, only to find out that their insurance is not good enough. They are under-insured.
While there is no set definition of underinsurance, most agree that it entails having health insurance that does not meet one‟s health needs and/or exceeds 10% of a family‟s pre-tax income. This often takes the form of high deductibles or co-pays or severely limited coverage of medical expenses. When this occurs, the insured person is left responsible for a substantial portion of the cost of their medical care, which often results in severe financial hardships for those facing an illness.