Issue Brief: New York’s Underinsured–Will Your Health Insurance Fail You When You Need It The Most?

Posted October 6, 2008 by Amanda

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.