Health Insurance Rate Increases And Grandfathered Health Plans – Should You Go Down With The Ship?

Everybody is getting large health insurance rate increases this year. The size of the increase is making many people look for alternative health insurance plans. One type of plan is being especially hard hit with double digit increases, and those are grandfathered health plans. We’ll cover what’s happening and what you can do to protect yourself from the rate increases that are taking place.

You may be thinking, “What’s a grandfathered health insurance plan?” The answer is, if you have a health insurance plan that was in place on March 23rd of 2010, and you haven’t made any changes to your plan, you’re still in the same plan, then you have a grandfathered health insurance plan. If you’ve been in the same plan for 5, 10, 15 years, then you have a grandfathered health insurance plan.

Grandfathered plans have some special exemptions and characteristics, so we need to go over those in a little bit more detail. The easiest way to do that is to tell you a story about a recent client. That client’s name is Barry.

Barry and his wife are 52, and they have two daughters; one 21, and one that’s 16. Barry shared with me that their letter basically told them their new rate was going up almost 24% and they would be paying $1389 a month. They were in an Anthem PPO Share 5000 plan, and they’d been in that plan so long, he didn’t even remember when they actually started it. The rates had increased progressively from one year to the next.

But this year, the rates were finally high enough that he said he didn’t want to pay that much anymore, he wanted to find an alternative. So he called his agent, and then he called Anthem Blue Cross directly. In both cases, they told him to “just ride it out” and wait to see what happened in 2014, after the Affordable Care Act kicked in. That wasn’t an answer Barry was willing to live with because he wanted a solution today.

So when Barry called he shared the above information and his fear that he would have to pay higher rates. When queried about the health characteristics of his family, he said they were all healthy, and that other than one or two colds, they did preventive care and that was pretty much it. Their current plan was very rich in benefits that they weren’t making use of, based on what he’d described.

After running a set of quotes for the family, and scanning all of the different options, it became clear that one of the best options for them was the Health Net PPO Advantage 3500 plan. The reason is because it gave them two office visits for a simple copayment, and then all of the preventive care was free. That’s not something that they had in their PPO Share plan. They actually have to pay for their preventive care as part of their deductible costs in that plan.

The monthly premium on that Health Net plan was only $480 a month, so they were saving a little over $900 per month, or $10,900 per year. Barry really liked that. But he said, “There’s a big difference in benefits between these two plans. Can you show me a plan that’s a little bit closer to the benefits we have in our grandfathered plan, but at a lower cost?”

Insurance is great for most people in the US who suffer from diseases and need a way to make their medical expenses a bit cheaper. So what do the people who have to buy expensive prescription meds every month do when their insurance doest cover it? Well, most of them get into debt, some ask for help, and the smart ones join a prescription advocacy program. These programs can get you prescription meds for cheaper than you can get them anywhere else. You can get cheaper Breo Ellipta for example, a drug that is currently one of the most expensive on the market.

Health

Muscles and How to Develop the Muscles –

Introduction –  You’ve presumably heard that you ought to integrate strength preparing into your work-out daily schedule. Despite this, going for a walk or jog around your neighbourhood may feel much more intimidating than lifting weights. While results may not generally be quick, making a strong strength preparing routine ought to show you recognizable muscle […]

Read More
Health

How to Have a Restorative Sleep

You shouldn’t try to implement every single suggestion or routine that has ever been made for improving sleep quality. Maintain a minimum of complexity in order to zero in on your optimal solution. Just choose one or two at a time and try them out for a week. The next step is to try to […]

Read More
Health

Residential Hospice Care

When a loved one is diagnosed with a terminal illness, it can be difficult to know what to do next. Hospice care is a type of end-of-life care that focuses on providing comfort and support to patients and their families. Residential hospice care is one option for more hands-on care and support. Residential hospice care […]

Read More