Premium Increases Announced for North Carolina Blue Cross Health Insurance - What Should You Do?

This year, the price increase was significant. It has caused many people to wonder what to do about their insurance coverage.

Here are some alternatives:

• Drop the insurance - go naked
• Switch to another insurance carrier to save money
• Change to a higher deductible to reduce the premium
• Change to an HSA type plan to reduce the premium

Let's examine each of these alternatives in detail.

Drop the insurance.

I understand this feeling. Here is an example of what people tell me every day:

"It was hard enough to make the payments last year. Now, this year they want even more of my earnings to protect myself and my family. I am going to drop the insurance so that I can put that money into a savings account. In ten to fifteen years I will have a large amount of protection."

There are several errors in this type of thinking. First, the likelihood of your putting $200, $300 or $500 into a savings account each month just won't happen. Even if it did, let's say that after year five, you need bypass surgery costing approximately $130,000. How far will $30,000 go toward $130,000. You will still owe $100K. You cannot declare bankruptcy for medical expenses anymore, so you will end up with a long term financial burden on yourself for life. Second, unless it is an emergency, you won't be admitted to a hospital. You cannot plan that it will always be an emergency. What if you need your gall bladder removed? The doctors, and hospitals can and do refuse to admit you unless you are in danger of imminent death.

Switch health insurance carriers:

Be careful here. Many companies offer a first-year rate that is low to entice you to switch to them. Next year, at premium increase time, you might see a 40% increase or more in the monthly premium. If you are still healthy, you can switch to another carrier. But what if your health has changed? Perhaps you have been diagnosed with type 2 diabetes. No other major medical carrier will accept you in North Carolina. You will be stuck with your new insurance company that you chose on price alone. Does it offer the best selection of doctors and hospitals? It doesn't matter now, you will have to endure every 30 to 50% increase that they place on you each year. At some point, all the healthy people will have switched out of this carrier and you are left in a pool of sick people. This causes the prices to increase at a greater rate every year...perhaps until the company drops covering everybody in the state of NC.

Change to a higher deductible:

This does make sense. Many people carry too low a deductible anyway. You should at least have a $2,500 to $3,000 deductible policy as a rule. When you add in coinsurance, you will have a total out-of-pocket of $5,500 to $6,000 should you have a catastrophic illness. I know, thinking of having to pay $6,000 out of pocket scares you, but it is better to pay $6,000 once every ten years, on average, than to pay a higher premium every month.

Change to an HSA type plan:

High Deductible Health Plans purchased in conjunction with opening a Health Savings Account is your best option. Historically, these type accounts have been more price stable than the traditional copay type plans. With an HSA plan, you will decrease your out-of-pocket risk and at the same time, reduce your monthly premium.

If you are unhappy with your current agent, or, if you purchased your North Carolina Blue Cross plan directly on the BCBSNC website, then you need to call an experienced, helpful agent. Richard will take the time to assist you through changing your plan to make it more affordable. There is no cost , nor obligation to do this.

Richard Day has years of experience finding the exact plan that will fit his client's needs. He adopted the HSA concept early, and will help you to understand how they work. This link for more information concerning the Blue Cross Blue Shield of North Carolina, Blue Options HSA

If you would like comparison quotes or need no obligation consultation, visit: http://www.ehealthinsurancesource.com

How Much Does Health Insurance Cost?
What factors affect the cost of your health insurance?Age: Obviously, there is a link between your need for health services and your age. As you hit...

How to Get Cheap Health Insurance Online in North Carolina
Women living in North Carolina will be happy to know that regardless of what insurance company they purchase their health insurance policy from, they ...

How to Get the Best Rates on Health Insurance in North Carolina
Health insurance in North Carolina is not regulated by the state. This means that the state cannot set prices and also cant advise a person regarding ...

How to Get an Affordable North Carolina Health Insurance Plan
Contrary to popular belief, affordable health insurance does exist. Here's how to get an affordable North Carolina health insurance plan with a reputa...

How to Save Money and Get Discount Health Insurance North Carolina
Group health insurance is truly the best way to get extensive coverage at a fair rate. For most individuals the only way they can qualify for a group ...

Affordable Health Insurance, North Carolina - Money Matters That Determine Your Rate
1. Affordable health insurance, North Carolina: If you decide to pay your premiums monthly, you'll attract higher health insurance rates. You may be t...

How to Compare Low Cost Health Insurance in North Carolina
Clearly the least expensive health care option for anyone in North Carolina is a group plan. Most of these plans are sponsored by employers and in som...

I Have Health Insurance - Now What Other Insurance Do I Need?
If you or any of your family have an accident, you will have to pay your deductible and coinsurance for your major medical health insurance. . . botto...

North Carolina Self Employed Health Insurance Issues
A small business faces an almost overwhelming number of issues when it comes to providing benefits to their employees: Should a small business provide...

Health Insurance - A Necessary Expense
Misconception 1: Health insurance is unaffordable:There are many types of plans available. The Health Savings Account (HSA), & the traditional copay t...

North Carolina Health Insurance - 6 Ways To Save
1. Folks whose occupations expose to hazards pay higher health insurance premiums. You'll get more affordable premiums if you quit a hazardous occupat...

Important Guidelines For Choosing Your Health Insurance Provider
Choosing a health insurance provider can be a daunting task. Although you know you will be happy you have coverage when you need it, insurance is one...

Slash Your Health Insurance Premium!
Sick and tired of the high cost of health insurance? Well, let's start slashing. I've spent the last 23 years helping people find affordable individua...

How to Get the Best Rates on Health Insurance in South Carolina
Health insurance is one of the hottest topics around. It seems everyone is talking about health insurance...but no one is doing very much about it.Un...

How to Compare Low Cost Health Insurance in South Carolina
Health insurance is probably one of the most difficult forms of insurance for the average person to afford each month - and yet without health insuran...

This entry has been filed under Affordable Individual Health Insurance and currently has