Some insurers have discovered this new model and are coming up with new designed plans that include high deductibles and also higher coinsurance to the extent that many companies are benefiting. There are some carriers that have not benefited as much from entering this new territory; for miscalculating the risk involved in insuring people with chronic health conditions. Traders who have analyzed and targeted their profit margins accurately are doing well in this market.
In the beginning, 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 meet people’s budgets and fit consumers’ 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 $5,000 to $6,000 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 the finances to the extent that money is not an issue, then by all means continue with your Bronze level high deductible plan.
As a consumer, it’s important that you do your homework and make sure that the health plans you’re considering purchasing are truly important medical coverage in the event 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 is going to happen to me in their sales pitch, enticing and offering lower premium dollars that 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, know the difference between the different types of plans in this health market. “Wisdom is the main thing; therefore acquire wisdom. And in all that you acquire, acquire understanding.” Proverbs 4:7.
As an insurance professional in the health and life industry, I would advise 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 any given period of time. As consumers, we must be wise in how we purchase 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.