Comments on: The Cost Of Individual Health Insurance In Colorado

By: Jay

Jay — Thu, 20 Nov 2008 09:02:45 +0000

@forHealth: Exactly. It is not like going to McDonalds, Home Depot, or any of the examples the libertarians will associate health care with in their examples of a free market system.

By: J.M.

J.M. — Tue, 21 Oct 2008 20:48:52 +0000

I am an unemployed, 63 year old, female, Currently have insurance through Kaiser which I retained following COBRA. Premiums are $670. per month.

The annual out of packet max is $3,000., premiums are $8,040. per year. I will soon be unable to afford the premiums.

It appears that the $2,500. credit to individuals under the McCain plan is not sufficient in my case.

By: Don Levit

Don Levit — Thu, 02 Oct 2008 18:04:08 +0000

Louise:
When you wrote that your current policy was discontinued, are you saying that they were not accepting any new applicants?
Does that mean the number of participants would dwindle over time?
If so, for those who could not switch plans or carriers, wouldn’t their premiums increase a lot more than if new applicants were entering?
Don Levit

By: Louise

Louise — Thu, 02 Oct 2008 17:23:03 +0000

Don,
Our current insurer, Humana, works the same as Blue Cross for policies that are actively marketed. So the price we pay today on our policy five years in, is the same as we would pay if we were signing up for the policy today. But our current policy was discontinued this year and replaced with a new HSA, so it remains to be seen what our rate increase will be going forward.

By: Don Levit

Don Levit — Thu, 02 Oct 2008 17:18:02 +0000

Louise:
I can understand how your insurer would provide a discount for proving your health.
However, that process is no different than what other insurers are offering in Colorado, correct?
Or, did you say previously that proving health to get a lower premium does not work that way with Blue Cross (Anthem) in Colorado?
For example, the rate they charged your family 5 years ago would be a similar rate for a similar policy that you started today?
Don Levit

By: Louise

Louise — Thu, 02 Oct 2008 17:04:44 +0000

Don,
We switched to an HSA in 2007, with the same carrier we had been with since 2003. They did underwrite the HSA, but there had been no changes in our health status in the four years we had been with them, so the underwriting was no different. Over the years, we’ve checked rates with other carriers every year, but rates have been increasing for all plans, so there was never a better option. We will continue to shop around each time we get a rate increase.

By: Don Levit

Don Levit — Thu, 02 Oct 2008 16:45:08 +0000

Louise:
Did you go through underwriting after your premiums doubled?
If so, was it with your present insurer or a new insurer, or was there a significant difference by doing so?
Don Levit

By: Louise

Louise — Wed, 01 Oct 2008 17:30:24 +0000

Don,
The problem with yearly renewable term insurance is that you have to continue to prove insurability year after year, and each year you essentially have a new policy, which does not cover pre-existing conditions (at least that’s how they work here in Colorado). So while the price may be lower, you’re essentially never covered for more than a year for any given condition, since the policy keeps expiring.
With individual health insurance, once you have a policy in force, it will stay in force as long as you continue to pay the premiums. I agree that the rate increases have been outrageous (Jay and I were paying double the premiums we were paying five years ago, even before we added our son to the policy). But the upside is that we don’t have to keep going through underwriting year after year. When we compare individual health insurance premium increases with those in the small group market over the last several years, they have been very similar.
For Health,
About half of our clients end up with exactly the quoted premiums and no exclusions once the underwriting is completed. So for them, the quoted prices are meaningful. Because we work closely with our clients to understand their specific health conditions and figure out which carriers – if any – are likely to offer the best coverage at the best price, we can help the other half of our clients end up with the best options available. And if no carriers will accept a client, we help them navigate the Cover Colorado system and get a guaranteed issue policy.

By: forHealth

forHealth — Wed, 01 Oct 2008 13:25:00 +0000

The online quotes for individual health insurance are an absolute waste of screen pixels. The quotes don’t include medical underwriting and they almost always end up significantly higher.

There is no reason to believe the Obama plan will cover any more people than the McCain’s. It’s more of robbing Peter to pay Paul, IMO. I am hoping there is NO money left after the bailout for health insurers. Let’s let the health insurance self implode so we can start over.

By: Don Levit

Don Levit — Wed, 01 Oct 2008 13:13:43 +0000

Louise:
The premiums you quoted on individual health insurance are the rates charged after proving health, for only the first year.
My experience in Texas has been that annual increases on health premiums are generally higher than annual premiums on yearly renewable term insurance.
Thus,depending on age, and the length of time the policy has been in force, premiums tend to double about every 7 years.
My premium on an individual policy was 40% higher in year 11 than a similar policy from the Texas High Risk Pool.
Don Levit