Up to 550,000 fourth-generation indemnity health insurance contracts could receive renewal notices by the end of 2026, five years after the product was introduced in July 2021. Renewal automatically moves these contracts into fifth-generation coverage, whose premiums are designed to be about 30% lower but whose out-of-pocket share for non-severe, non-covered treatments rises to half.
The better option depends on how often a policyholder uses hospitals and whether they need non-covered treatments such as physical therapy.