Rate Increase

[auditor0007]

I know all the evidence indicates that health care costs are increasing at near double digit rates, but I just received my rate increase for my two boys, and for the second year in a row, the increase is only 4%. I cannot use the rates for my insurance as an indicator because I am in the high risk pool and those rates have been set in stone from the time the plan was implemented. All I can do is go off the rates for my two sons.

If there is anyone else here who actually has to pay the full amount for their health insurance, I'm curious how big of an increase you have had last year and this year, if you have received your increase already for this year. I would just like to hear some real numbers from real people rather than numbers from pundits.

 

[auditor0007]

44 views and no response. As I have stated many times in the past, very few people actually pay for their own health insurance, so they really do not understand the costs. Having an employer take a small portion of the cost out of one's paycheck just does not help to make a person understand the true costs. I think if people did have to pay for their own completely on their own, things would change quickly.

 

[oldernwiser]

Complicated question, actually.

First off, understand that your insurance rates have a lot to do with the group you're lumped into. For example, smaller employers are grouped with other similar sized employers. Large employers are a group unto themselves. Individuals are also grouped together, but by geography - zip codes in some states and by county in others. The rates themselves are determined by the number of subscribers in the group and some statistical voodoo which assigns risk and liabilities.

However, all insurance rates are governed by state law and your state's insurance commissioner has to approve any adjustments made. You can google the exact laws that govern your state in most cases - or contact your state's insurance commissioner.

That said, there is a difference between health care costs and health insurance costs. Put as simply as I can, your health care costs are paid (at least in part) by your health insurance.

So, if you really want to compare health care costs, look at the Explanation of Benefits letter your carrier sends out whenever you submit a claim. If you track them, you'll see that fees for office visits and standard procedures are escalating quite rapidly. When you contrast that with what it costs you for your insurance yearly, you'll appreciate the power of the group.

 

[DiBaskin]

I am retired seven years ago. For years I paid nothing for Health Insurance and had no deductible. I had a 15 co-pay and my prescriptions where 10 no matter what it was. I was on my husband plan which wasn't as good but was better then nothing. Now he has retired. In my search for private insurance I have found that the cost is very great. I would have to pay 300 to 1000 a month depending on the deductible. It doesn't cover Doctor's visits. The $300. carries a $10,000 deductible. I am thinking why would I pay $300 a month with such limited coverage. I am thinking of putting that money in a savings account and pray I don't get sick. Having to pay $10,000 off the top is my biggest problem. It would take forever to pay it off and I would still have paid $300 a month and how much would they really cover. I think I am prepared to op out of Hospital Care and to just die at home if necessary.

 

[Amazed]

Complicated question, actually.

First off, understand that your insurance rates have a lot to do with the group you're lumped into. For example, smaller employers are grouped with other similar sized employers. Large employers are a group unto themselves. Individuals are also grouped together, but by geography - zip codes in some states and by county in others. The rates themselves are determined by the number of subscribers in the group and some statistical voodoo which assigns risk and liabilities.

However, all insurance rates are governed by state law and your state's insurance commissioner has to approve any adjustments made. You can google the exact laws that govern your state in most cases - or contact your state's insurance commissioner.

That said, there is a difference between health care costs and health insurance costs. Put as simply as I can, your health care costs are paid (at least in part) by your health insurance.

So, if you really want to compare health care costs, look at the Explanation of Benefits letter your carrier sends out whenever you submit a claim. If you track them, you'll see that fees for office visits and standard procedures are escalating quite rapidly. When you contrast that with what it costs you for your insurance yearly, you'll appreciate the power of the group.

Well done, very well said...and factually correct.

 

[onecut39]

I am retired seven years ago. For years I paid nothing for Health Insurance and had no deductible. I had a 15 co-pay and my prescriptions where 10 no matter what it was. I was on my husband plan which wasn't as good but was better then nothing. Now he has retired. In my search for private insurance I have found that the cost is very great. I would have to pay 300 to 1000 a month depending on the deductible. It doesn't cover Doctor's visits. The $300. carries a $10,000 deductible. I am thinking why would I pay $300 a month with such limited coverage. I am thinking of putting that money in a savings account and pray I don't get sick. Having to pay $10,000 off the top is my biggest problem. It would take forever to pay it off and I would still have paid $300 a month and how much would they really cover. I think I am prepared to op out of Hospital Care and to just die at home if necessary.

It is the American way!