Some insurers have understood this new model and are administering newly designed plans with higher deductibles as well as higher co-insurances to the degree that many carriers make a profit. There are some carriers that are making very good profits by entering this new territory; due to the fact that the risks associated with insuring people with chronic health conditions were miscalculated. For carriers who accurately analyze and target their profit margins, they do well in this market.
Initially, when the government first chose to have the authority to insure all people, their ideas for Bronze level plans would pay at a co-insurance level of 60%. However, as time progresses; carriers design plans to meet individuals’ budgets and fit consumers’ lifestyles by having highly deductible plans that appeal to higher-income individuals.
Ask yourself this question; Why would I have such a high exemption and at the same time pay high premiums to get an 80% co-insurance after spending anywhere between five and six thousand dollars on a bronze-level plan? It doesn’t make economic sense, but that’s what’s happening in the health insurance business. As long as you’re healthy and have some degree of finances where money isn’t an issue, of course, continue with your Bronze level high deductible plan.
As a consumer, it’s important to do your homework and make sure the health plans you’re considering buying are truly great medical coverage should you experience a devastating illness that could devastate your financial portfolio. A number of carriers are also creating compensation type coverage; To give the American public the wrong idea that nothing will happen to me in their sale, tempting and offering lower premium dollars that are tempting and although such plans will cover the minimum medical expenses; However, if a catastrophic event occurs in your life and you find yourself hospitalized within a certain period of time, they are not major health insurance. Don’t be fooled, know the difference between the different types of plans in this health market. “The important thing is wisdom; therefore acquire wisdom. And in all that you attain, gain understanding.” Proverbs 4:7.
As an insurer working in the health and life industry, I advise people to consider their household income when purchasing insurance products to protect their income and assets. None of us would like to suffer financially, and on top of that, we would be physically unable to earn a paycheck at any given time. As consumers, we must be smart about how we buy insurance; This is important if not as important as the type of coverage we choose to have in our financial planning. When wisdom is applied to our daily walk, common sense should follow in every decision we make. “When wisdom enters your heart and knowledge welcomes your soul, common sense protects you; understanding protects you.” Proverbs 2:10-11.
Encourage and educate yourself on: different types of life and health insurance products, personal finance and other business information about money and how money works.