The Ugly Duckling of Health Insurance Turns Into a Swan

If you want the highest quality for anything, you have to pay more right? Currently when you shop for individual, family, or self employed health insurance plans in Washington State that principle does not apply. Rarely does the combination of fantastic benefits and low rates coincide.

Let’s start by mentioning that I never thought the basic “Pay Less, Get MORE” principle would apply to this company. After all, the company I am referring to is usually thought of as an HMO, where you historically had to see their doctors at their facilities. Yuck. In many ways this resembles the ugly kid in class growing up to be a supermodel, it can happen, but it is rare. In fact, several years ago if you had told me that this company would have a huge network of providers and hospitals rivaling or exceeding Premera or Regence, I’d have thought you were kidding.

This company is Group Health. Remember when they were not so fondly referred to as “Group Death”? A lot has changed.

I was skeptical myself, and didn’t place a lot of clients with this new and improved version of Group Health until I saw that their new model was working. Well, it is working and is providing great health insurance benefits for very low rates. Even President Obama has recently lauded them as one of the best examples of care in the country.

They changed because they had to in order to survive. Their membership was stagnant, while Regence and Premera were growing. They were having a hard time attracting top talent, when Regence, Premera and others could afford the best management money could buy. So, Group Health rolled up their sleeves and changed. And, they didn’t receive any bailout money or tax assistance to do so.

The health insurance agent community is happy because now there are more competitive health insurance products that more people can afford. Health Insurance consumers ranging from individuals, families, self employed and small business are happy because the newly changed company fosters rate competition in Washington, a market historically dominated by Regence Blue Shield. Group Health is happy because their growth has increased revenues which allow them to attract better and more qualified employees than ever before.

So, the moral of the story is this. Anytime a health insurance company is allowed to offer more and expanded health insurance options at reasonable rates, we all benefit. Let’s just hope our elected leadership crafting new policy in Washington understands this basic economic principle.

Lifewise Health Insurance Plans Announces 2009 Rate Increase!

Don’t panic though. Lifewise Health Insurance Plans, the Individual Health Insurance division of Premera Blue Cross in Washington just announced their yearly rate increase. As of January 1st 2009 all their plans will increase by the same amount. How does this stack up against this past summers’ rate increases by Regence Blue Shield and Group Health? Pretty darn good.

The Lifewise rate increase for 2009 will be 7.4%. That is not a typo. Single Digits. Below 10%. Wow. Yes, that is still more than anyone WANTS have their plan increase, but it’s still good.

To compare, Regence Blue Shield of Washington just handed their customers about an 18% increase, and Group Health ended up with a 13% percent increase. Ouch.

This small rate increase was predicted. For the past last two years, Group Health has had, in my own opinion, the best combination of benefits AND rates for most of its individual health insurance plans. Regence was usually more expensive and Lifewise was by far the most expensive. I have a post from September 3rd comparing similar health plans and costs for an average Seattle family. By far over the past couple years, the most reasonable cost for comparable benefits was and is Group Health.

However, looking back just a few short years this result was switched. Lifewise was previously the best bang for the buck. Lately though they had been getting hammered due to their rates. Oh yes, Lifewise heard that their rates and benefits were out of whack, and they finally responded. Now, 7.4% will not make their plans more competitive instantly, but I expect both Regence and Group Health to have another round of substantial rate increases next year, which would then bring Lifewise back into the running. Their plans ARE good, with great preventative benefits; they’ve just been priced a bit high.

This all goes to show that you should shop your health insurance plan every couple years. If you or anyone you know is on Lifewise Insurance and want to know more about this rate increase or other available options, give me a call or email. I’m always happy to help!