Vincent K Blair Insurance Blog

During the healthcare debate, critics predicted that employers would drop their group health insurance plans and simply pay the penalty the new law laid out under the reasoning that it would save them boat-loads of money.  Seems big employers like John Deere and ATT are considering doing just that. Click here to read a Fortune Magazine article about this frightening development that will send healthcare costs soaring...

Some health insurance companies are enacting changes to their policies before the deadlines set by the new healthcare law.  Some examples:

• This month, major insurers will end the practice of "rescission,"  which involves going back and trying to find minor mistakes or omissions in applications when policyholders develop costly illnesses;
• Many insurance companies this spring will also start covering children up to age 26 on their parent’s policies – something they weren’t legally required to do so until September

Health insurers have also decided to cover children with pre-existing conditions, even though the new law contained a loophole the insurance companies might have invoked had they wished to fight the new requirement. 

There is one large caveat to this trend; large businesses which essentially insure themselves and only use insurance companies to administer their plans. These employers will not speed up implementation of the new requirements and indeed may increase premiums when they do.  Read more about all these health insurance developments in this article in the Washington Post.

Will the new health care law bring health care costs down? Not according to the Centers for Medicare and Medicaid Services, which is part of the Department of Health and Human Services. According to chief actuary Richard S. Foster, total healthcare spending will increase by almost $90 billion over the next 10 years, not decrease, as the Obama Administration asserts.  Foster further predicts that about 14 million people would lose their employer coverage by 2019 as smaller employers terminate coverage, forcing their workers into Medicaid. 
       And remember: Foster's office  is PART of the Obama Administration! 

Not all affordable health insurance plans are created equal... in fact, some are downright scams, as this story from TIME points out. Expect to see more of these cons in the months and years ahead because of the requirement to buy health insurance by the year 2014...

Folks, the confusion over the new healthcare law is increasing... for good reason:  it's an extremely complex law with phased-in elements stretching roughly from this September to 2014. Click on this article for a good summary of reaction on the "street":
"New Health Care Law Spawns Mass Confusion"

If you're an individual Anthem Blue Cross customer, this is a good time to review your options because your rates will almost certainly rise between 17%- 30% in 2010 -- starting Jan. 1 for some of my clients.

Why the rate increase? Most people blame the insurance company but the fact remains that the biggest reason is rising medical costs --- not the greed of the insurance industry, whose profit margins average 3.3 %, according to one study. That's a rate well behind many other industries-- including hospitals.

There is something you can do: first, call an insurance broker who knows the ins-and-outs of Anthem Blue Cross.  For example, one man received a rate increase notice which raised his monthly premium to $1250. When he gave his current broker a call, she was able to write a plan that lowered that premium to $850.  When he called me, I was able to lower it even further, with 100% coverage after his deductible was met.

Don't rely on the information you get by calling Anthem directly; while they do their best, the people answering the phone may simply try to adjust your CURRENT policy; they may not tell you about another plan that may be better for you.   If you don't have an agent, or if your agent hasn't kept up with you, I invite you to call me to discuss Anthem's full product line. It could save you money and may even maximize the protection of your coverage.

After all, I don't want to see you get burned by rising health insurance rates in the New Year, especially if you can avoid it.

You hear it a lot these days – from the halls of Congress to  kitchen tables all across  Missouri and Illinois:  “Where can the average person get affordable health insurance?”  I hear it every day  in my office and I always ask my clients what they mean when they say that. 

Do they mean affordable premiums on health insurance?  Affordable deductibles?  Affordable  co-pays? “Why, yes,” most people say, “all three!”  Then I ask them, “ What if you bought a policy with affordable premiums, affordable deductibles and affordable co-pays, and you get sick, and the policy doesn't cover what you have?  How affordable is that same policy now?

The answer is simple: Not very affordable!  Because now you would be liable for the full cost of your very unaffordable treatment!  Like so many other things in life, you get what you pay for. 

Having said that, there ARE truly affordable health insurance policies out there – for a variety of budgets.  Here's how to find them:

• DO work with a health insurance broker who is knowledgeable about a wide variety of policies and who asks the right questions about your current health care needs.  There is no extra charge for using a broker, so take advantage of their expertise;
• DON'T simply fill out a form on the internet that promises to give you an “instant Quote”. Quotes that are provided online are averages only and your quote could differ radically when you actually apply with these companies;
• DO ask lots of questions about WHAT IS and WHAT ISN'T COVERED  when you buy a policy. This information - factored in with premium and out-of-pocket costs - is what  determines  true affordability.

 So, yes, there are affordable health insurance policies out there. And these days, you really can't afford to be without one.