Some insurers have discovered this new model and are coming up with new designed plans that include higher deductibles as well as higher coinsurance as many companies are taking advantage. There are some carriers that have not benefited as much from entering this new territory; by miscalculating the risk involved in insuring people with chronic health conditions. Traders who have accurately analyzed and targeted their profit margins are doing well in this market.
Back when the government first had this mandate to insure everyone, their idea with the Bronze level plans would pay at a 60% coinsurance level. However, as time has passed; Insurers are designing plans to fit people’s budgets and consumer lifestyles by having high-deductible plans that appeal to higher income earners.
Ask yourself this question; Why do I have to have such a high deductible and pay high premiums at the same time to receive 80% coinsurance after spending $5-6K on a Bronze level plan? This doesn’t make economic sense, but this is what is happening in the health insurance business. As long as you are healthy and have finances to the extent that money is not an issue, then by all means continue with your Bronze tier high deductible plan.
As a consumer, it’s important that you do your homework and make sure that the health plans you’re considering buying are really important medical coverage in case you experience a devastating illness that could ruin your financial portfolio. Several companies are also creating indemnity-type coverage; giving the American people a false notion that nothing will happen to me in their sales pitch, luring and offering lower premium dollars which are attractive, and even though these types of plans will cover minimal medical expenses; however, they are not insurance for major medical expenses if a catastrophic event occurs in your life and you are hospitalized for a certain period of time. Don’t be fooled, learn the difference between the different types of plans in this health marketplace. “Wisdom is the main thing; therefore, acquire wisdom. And in whatever you acquire, acquire understanding.” Proverbs 4:7.
As an insurance professional in the life and health industry, I would encourage people to consider their household income to protect their income and assets when purchasing insurance products. None of us would want to suffer financially and, on top of that, become physically unable to earn a paycheck for a set period of time. As consumers, we need to be wise with how we shop for insurance; which is just as important, if not more so, than the type of coverage we choose to have with our financial planning. When wisdom is applied to our daily walk, discretion must accompany every decision we make. “When wisdom enters your heart, and science is pleasing to your soul, discretion will keep you, intelligence will keep you.” Proverbs 2:10-11.
Go ahead and educate yourself on the topics of; different types of life and health insurance products, personal finance, and other business-related information that has to do with money and how money works.