5 Signs It’s Worth Comparing Your Health Insurance by Justin Kenion
Introduction
Let’s face it– to the average person, health insurance is not some thrilling activity to look forward to every year. Conversations or considerations can be frustrating. Quotes are often gatekept behind closed doors of forms collecting your personal info, which is typically followed by a cacophony of telemarketers calling and texting non-stop. Once you do find some information, the reality is there are hundreds of plans available with minute differences. Deductibles, co-pays, out-of-pocket maxes, day-to-day benefits… The list goes on. And let’s not forget about the elephant in the room–the monthly premiums! Depending on your source, whether that is Healthcare.gov (ACA Marketplace), group employer options, and private options. With all that considered, and the fact that open enrollment can feel like a rat-race with limited time to review information, here is a list of 5 signs it’s worth comparing your health plan to other options.
Sign 1: You're healthy and haven't compared all of your options
Here is a simple way to think about this: If Joe Schmo was signing up for auto insurance after having five speeding tickets, two hit and runs, running from the cops, and a D.U.I, what do you think his monthly premium should look like? It certainly isn’t going to be the same as someone who has never had any auto incidents. Health insurance, unlike auto insurance, has premiums that are calculated based on the risk pool you are in. What determines that is the plan and provider you have coverage through. The ACA Marketplace, employer options, and private options all utilize different risk pools, and if you are grouped with high users while you yourself are not, chances are you are footing part of the bill.
Sign 2: The coverage doesn’t match your usage
As outlined in the previous section, plans designed for high usage, such as those available on the ACA Marketplace, have much higher premiums than plans designed for low-usage. If the only thing you use your insurance for is annual check-ups and as protection against any catastrophic claims, you could be spending a lot of money on features that don’t matter to you. All of those prices add up, so if you are unsure about what benefits your plan has, it could be good to look into plans with features that are relevant to you.
Sign 3: You have only explored the Government Marketplace
For people who do not have access to employer coverage, the government marketplace is the most readily available resource to look at. While the plans do have strong coverage, they are typically going to be the most expensive option out there. Private options are a strong alternative if you do not qualify for substantial income-based subsidies.
Sign 4: Your monthly premium has increased
If your rate has gone up at renewal or after a life change, it's a good opportunity to see what's available. The typical rate increase for plans varies on the type. In Arizona’s recent years, we have seen marketplace plans shoot up about 20-30% per year. Small-group employer plans (50 or less) tend to have unpredictable volatility based on usage; for example, if one person has a $500,000 claim, the rest of the group’s premiums will rise the following year. Private options tend to be the most stable in pricing, typically rating up around 5-10%.
Sign 5: Your health or income has changed
Life can be unpredictable. While health insurance is designed to be had before something happens, sometimes that isn’t always possible. If anything major has happened in either your health or finances, it’s time to calibrate and see if there are any changes that could be made in order to work for your specific situation.
What now?
If any of these points struck home, send me a text or email about your situation and I would be more than happy to help you however you can! You can also complete the guided discovery on the home page.
619-438-2417 justin.kenion@jkhealthadvising.com
