It Is Just Not Fair

Spring 2003 CSANews Issue 46  |  Posted date : Apr 15, 2007.Back to list

Insurance, as we all know, is just a game of averages. We each pay our premiums and hope that we will never have to make a claim. In travel insurance the premiums are very high because the amount of a claim can be very high. Medipac's maximum policy limit is $1,000,000US which equates to approximately $1,500,000 Canadian dollars. We rarely see payouts that are this high, but it is very common to see claims between $150,000 and $500,000. Two weeks ago, for instance, we had 7 hospitalizations that were all in excess of $150,000 each. We are talking about numbers and averages but these are real people, who got in trouble medically, possibly even your friends.

Our premiums go to pay for their medical bills.

But in any system of averages there are compromises and sometimes the premium you pay is just not fair! To give you some examples, we at one time charged women taking Tamoxifen, as a preventative measure to prevent breast cancer, the same rate as women who had breast cancer. That's not Fair. Speaking of cancer, we used to charge people who had been cancer-free for ten years, the same price as people who had cancer last year. That's not Fair! When we speak of diabetes, there are several kinds, but we have had difficulty isolating the severity of the condition with our insurers. One type of diabetes is controlled by diet, a more difficult diabetes requires prescription medication and, of course, there is the fairly severe diabetes requiring direct injection of insulin, often several times a day. These three types of diabetes are certainly not the same cost to insure, but that is what happens when you deal with the averages and this is not fair, either. If you want to confuse things, let us try and decide what premium to charge for each of these diabetic types when combined with ­ heart failure, asthma, circulatory problems or any of the other major health issues.

We have made many changes to our Medipac policies over the years and many of them are to address the issues of fairness. We also try to allow more snowbirds to qualify for our best rates every year, by reducing qualifying periods and adjusting our questions to be more lenient. Many of these changes are as a direct result of your letters and we thank you sincerely for taking the time to write. It is pretty obvious how most of these letters start - "It is not Fair..........".

Our Early Bird Plan is in the works and we believe that you can help us with our Fairness issue. We are asking you to send us your suggestions and comments on what you believe to be Fair. What do you think we should change? Why do you think your premium was not fair, last year? What have your friends told you that did not sound right?

If you are concerned about the cost of the stamp, don't worry; we will give anyone who sends us their suggestion a $5.00 credit on their Medipac insurance purchase. Some rules apply, only because our clients are so smart. The first rule is that you will only get the $5.00 credit once, per person. I know that some of you are so knowledgeable that you would send 200 suggestions and expect your insurance for free; sorry. We still want to hear the 200 suggestions, though. The second rule is that your suggestion must be postmarked by June 15, 2003. (A pretty stamp would be appreciated as I am getting back into stamp collecting after many years). Now that's Fair ­ Only 2 rules!

Send Your Suggestion to:

Now That's Fair
Medipac International Inc.,
180 Lesmill Road,
North York, Ontario,
M3B 2T5.

And, just for the record, there is nothing average about our Medipac clients!