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.

Confused about Health Care Reform? You're not alone.

I have received questions from many clients over the last several months asking about what health care reform means and what it will or will not do. Unfortunately, I myself have more questions than answers. Here are the questions I think we need to ask ourselves, and be able to answer, before deciding to either support, not support, or partially support “Reform”.

1. Which bill(s) are we referring to? There are over 6 bills circulating right now and the two front runners are likely to be merged soon.
2. What is the effect of the over 1,200 amendments to these bills? Will the amendments done at the request of the special interests neutralize any positive aspects intended? (Health Insurance Agents like myself just had a successful amendment added, can you guess what is was?)
3. What is the main problem we are trying to solve? Health Care spending or covering as many uninsured as possible? They are inversely related and none of the current bills adequately address both.
4. Do we want competition, regulation, de-regulation across state lines, etc.?
5. Will reform make us healthier, or just provide more customers to the health care and prescription drug industry?
6. Will the reform efforts help/make us change our lifestyles, the only way we will ever get healthier as a nation?
7. Should we bring back Richard Simmons and “Sweating to the Oldies”?
8. Would mandated insurance coverage for all be of enough benefit to outweigh the loss of personal choice?
9. ?

I appreciate hearing so much feedback from all of you, so let me know what questions you think we should be asking!

What my two year old daughter Sonja tells me to do about health care "Reform"

1. Stop eating when you are full.
2. Fruits and veggies taste better than fast food once you start eating.
3. Go outside and run around if you start to get cranky.
4. Get more sleep. And take a nap now and then.
5. Hug people. It makes everyone feel good. Isn’t that the point?
6. Find some friends and laugh with them.
7. Have someone put sunscreen and a hat on you when you go outside.
8. Kentucky Fried Chicken doesn’t taste like chicken, and makes your tummy hurt.
9. Candy is only for when you’ve been REALLY good.
10. You find more food in your mouth when you floss! Ewwww!

Bonus! The doctor is more fun to see before you get sick!

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!

Listen to Senior's worries about Health Care Reform

From reading my July 21st post you understand that I'm not totally against all Health Care reform. However, I read a Seattle Times article suggesting that our seniors overwhelmingly don't support Health Care reform simply because they have been tricked into believing that it will somehow make their health care worse. The author implies that either:

1. Seniors are stupid for not understanding what version of "reform" is being discussed at the moment.
OR
2. Seniors are being preyed upon by Republicans and are not smart enough to fight back.

Yes, there are many misconceptions about all the various "reform" plans out there. However, I vote that our Seniors are pretty smart and have good reason to be suspicious of the current Health Care Reform proposals floating around.

WHY?

If ANYONE knows how bad the government can screw up a program it is them. Seniors are already on the Government program, Medicare, and know first hand how bad our current "single payer" program is.
1. Medicare requires them to buy "Medigap" insurance from PRIVATE health insurance companies to fill in all the holes in Medicare. This can cost several hundred dollars a month.
2. We've have had since 1965 to get Medicare right, but it's still a mess. Should we expect a single payer system to be better if it is rushed through by the end of this year?
3. Since Medicare reimbursement rates to doctors are low, and going lower, many Seniors have been forced to change doctors when their providers stopped accepting Medicare. Doctors just aren't required to accept Medicare patients.
4. Medicare is BROKE. No money in its coffers by the end of 2010 by the CBO estimates. Could we at least fix what we've got first?

Perhaps the author should take a cue from our Seniors. They've been around long enough to know when someone is not giving them the whole story.

You can read the Seattle Times article at:

http://seattletimes.nwsource.com/html/politics/2009757801_apushealthoverhaulelderly.html