Why is my Premium so high?!

Yep, it’s true premiums have gone up again, according to MSNBC by as much as 5%. So, in our best Kenan Thompson voice, “what’s up with that?!”

Let’s start with RISK:

Insurance is all about risk, and the Affordable Care Act mandates through legislation that a company must have a minimum of an 80-20 loss ratio. This means 80% of the premiums collected must go to pay claims; and because everyone can get health coverage regardless of existing health problems it causes a lot of people to wait until they actually need treatment to find and purchase health insurance, which in turn leads to an unbalanced risk pool. Why? Because if you sign up for a guaranteed issue plan with day 1 coverage, and immediately start taking money back out of the system... you never pay IN what you take OUT. The result, higher and higher premiums to offset the influx of preexisting-health-issues participants. In fact, rates are based on gender and age and can not be increased or decreased due to health—at all—so though conceivably they could stay the same, they never do. In short, premiums always go up because there is guaranteed risk (uncertainty) built into the healthcare system as more people enter with preexisting conditions.

So you’re saying I’m stuck paying higher premiums?

The answer is Yes, if you choose a public ACA plan you’re stuck paying higher premiums than last year. And we’re not knocking ACA because truthfully many private plans, which your company may offer, will have increased premiums as well. In general, higher premiums every year is the current norm based on the state of our healthcare system.

What’s the best solution to higher premiums and how do I get unstuck?

Open Enrollment 2020 is an awesome time for you to explore the myriad of possibilities for securing health insurance. Alternatives have been created offering preferred coverage when an individual is healthy, which helps to maintain a balanced risk pool and creates lower rates. The best solution to combat higher premiums is comparison shopping. When you know ALL the options, you can choose the option which is the best fit for you and your family without breaking the band. For example USHealth Advisors in Atlanta regularly saves money for its clients, simply by comparing apples to oranges and making you aware of your health coverage options. The result, you get to choose from multiple plans based on whatever factors are most important to you i.e. a lower premium. 

What’s up with that?!

If we may be so bold to reflect the question back to you, it would sound a lot like “why are you overpaying for your health insurance?” The truth is, most of the time folks are overpaying because they’ve never explored their options to discover a plan that is affordable AND effective. So here’s a gentle reminder: Open Enrollment 2020 exists so that you have access to the lowest premiums available for your health coverage. Call a USHealth Advisor today {843) 817-0518, and don’t let procrastination or discouragement keep you from the outstanding health plan you deserve at a cost you can afford.

USHealth Advisors in Atlanta is passionate about advising you on the journey towards a Health Insurance Plan that is right for you and your family—especially during Open Enrollment 2020 which is currently happening! Your health coverage doesn’t have to be complicated. Don’t over pay for health coverage, call us today to compare your options and discover a plan that won’t break the bank (843) 817-0518