Some insurers have discovered this new model and are in the process of preparing new designed plans that include high deductibles as well as higher coinsurance as many carriers take advantage of it. There are carriers who have not benefited so well from entering this new territory; due to miscalculating the risk associated with insuring people with chronic illnesses. Carriers that have accurately analyzed and targeted their profit margins are doing well in this market.
At first, when the government first chose to have this mandate to insure everyone, their idea with the Bronze level plans would yield a 60% coinsurance level. However, over time; carriers design plans to meet individual budgets and to fit the lifestyle of consumers by having high deductible plans that appeal to those with higher incomes.
Ask yourself this question; Why would I have to have such a high deductible and pay high premiums at the same time, in order to receive 80% coinsurance after spending 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 industry. As long as you are in good health and have the finances to the point where money is not an issue, by all means continue with your Bronze level high franchise plan.
As a consumer, it’s important that you do your homework and make sure that the health plans you’re considering purchasing are really important medical coverage in the event of a devastating illness that could ruin your financial wallet. A number of carriers are also creating indemnity-type coverages; giving Americans the wrong idea of nothing will happen to me in their sales pitch, attracting and offering lower premiums which are attractive, and although these types of plans cover minimal medical expenses; however, it is not major medical insurance should a catastrophic event occur in your life and you find yourself hospitalized for a period of time. Make no mistake about it, know the difference between the different types of plans in this healthcare market. “Wisdom is the main thing; therefore get wisdom. And in whatever you get, get understanding.” Proverbs 4: 7.
As an insurance professional in the health and life industry, I would recommend that people 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 period of time. As consumers we must be wise in the way we purchase insurance; which is just as important if not more important than the type of coverage we choose to have with our financial planning. When wisdom is applied to our daily walk, discretion should follow every decision we make. “When wisdom enters your heart, and knowledge pleases your soul, discretion will keep 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 money related affairs and how money works.