Some insurers have figured out this new model and are masterminding new designed plans that include high deductibles and also higher co-insurances to the degree many carriers are profiting. There are some carriers who have not profited so well with entering this new territory; due to the fact of miscalculating the risk involved with insuring people with chronic health conditions. For carriers who analyzed and targeted their profit margins accurately they are faring well in this market.
In the beginning when the government first chose to have this mandate of insuring all people, their idea with the Bronze level plans would payout at a 60% co-insurance level. However, as time has progressed; carriers are designing plans to meet individuals budgets and to fit consumers lifestyle by having high deductible plans that appeals to those with higher incomes.
Ask yourself this question; why should I have such a high deductible and pay high premiums at the same time, in order to receive a co-insurance of 80% after spending anywhere between five to six thousand dollars on a Bronze level plan? This does not make economical sense, but this is what is happening in the health insurance business. As long as you are healthy and have the finances to the degree where money is no object, then by all means, continue on with your Bronze level high deductible plan.
As a consumer, it is important for you to do your homework and make sure the health plans you are considering purchasing are truly major medical coverage in the event you experience a devastating illness that could wreck your financial portfolio. A number of carriers are also creating indemnity type coverage’s; giving the American people a false sense notion of nothing is going to happen to me in their sales pitch, luring and offering lower premium dollars which are attractive, and though these types of plans will cover minimum medical expenses; however, they are not major medical insurance if a catastrophic event were to occur in your life and you found yourself hospitalized over a certain time period. Don’t be fooled, know the difference between the different type of plans in this health market. “Wisdom is the principal thing; Therefore get wisdom. And in all your getting, get understanding.” Proverbs 4:7.
As an insurance professional in the health and life sector, I would recommend people take into consideration 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 time period. As consumers, we are to be wise with how we purchase insurance; which is just as important if not more important as to the type of coverage we choose to have with our financial planning. When wisdom is applied to our daily walk then discretion should follow with every decision that we make. “When wisdom enters your heart, And knowledge is pleasant to your soul, Discretion will preserve you; Understanding will keep you.” Proverbs 2:10-11.
Be encouraged and educate yourself on the topics of; different types of life and health insurance products, personal finance, and other information related to business that has to do with money and how money works.