What to Do? I just received another rate increase letter from my health insurance company… or I just received a termination letter from my health insurance company… Now what? The Open Enrollment period for 2014 has already closed….
It seems like more and more of the phone calls I am getting each day are coming in with questions or statements just like those above and it seems that they are becoming more the norm. Rate increase notification letters are nothing new in the health insurance world. In fact as a broker for more than 29 years now I do not think I can remember a single year where rates did not increase year after year. So what has changed? To be short – the Affordable Care Act is what has happened.
The rate increases that people are receiving now are for either their Grandfathered or Non-Grandfathered plans that existed prior to the ACA. So what is it that is causing rate increases that are higher than previously experienced by the consumer? I think the answer is fairly simple. None of these plans exist any longer in the open markets and because of this there are no new sales happening and therefore no new money is coming into these risk pools.
Just the natural migration of people out of these plans causes a decline in the number of policy holders thus reducing the amount of money that remains within these risk pools. As claims continue to place demands on the insurers to pay the medical costs – money gets tighter. The only thing they can do is to either adjust the rates as before or shut these plans down. These rate increases then tend to be higher than the normal medical trend cycles that are typically seen year after year. Thus new rates for these dying plans and their risk pools are higher than normal. It is a vicious cycle. Sooner or later these plans will self destruct.
It was not more than a few months ago that people on Grandfathered plans thought they were safe from the high rates seen for the first go around and introduction of the ACA Compliant Metal plans earlier this year. They were to be able to keep their plans as promised. The new ACA Compliant plans were simply more expensive and so many people held their ground. Now these plans are seeing new higher rates and as far as I know the trend is up up up. All of the sudden the Metal plans are not looking so bad. Rates are now closer than before and benefits are better with the newer Metal plans.
So what does this mean for you? Well if you are outside the Open Enrollment period – which we are at this point in time and you are receiving a renewal or cancellation notice companies like Assurant Health are making it possible for you to enroll now in a new Metal Plan and not have to wait until November 15th (the next Enrollment Period). If you have received a rate increase letter on your Grandfathered plan or even your Non-Grandfathered plan you can apply for a new ACA Compliant Metal plan with Assurant Health right now.
Your window is short if you qualify so do not waste time. Check out the Metal Plans from Assurant Health and see if you can improve your situation. It is important to note that this window of opportunity is only available during 2014. After this year is over this change can only happen during the Open Enrollment periods or if you have a qualified Life Event.
Click Here for more information about the Assurant Health CoreMed Metal plans or get your quote now by clicking the blue “Get A Quote” button below. Call us with questions (619) 435-6700 or visit our website.