Should you enroll for health insurance with a company that has declared they will be going out of business?
Why would you do that?
Recently, a company made up in part of insurance companies that helped create the modern U.S. major medical market, says it will stop taking applications for new individual major medical coverage, short-term health insurance and insured group coverage June 15.
The company announced it was leaving the health insurance and employee benefits markets in April.
But they kept enrolling people between April and June?
I am unhappy to see any provider leave the market as we need more carriers, not less to maintain a competitive market.
The real point here is that your medical insurance is very important to you and taking the cheap route is not a good idea. Carriers like this that promise great benefits for lower rates have to make up the underfunding someplace. That only matters to you when your life literally depends on your coverage.
Word on the street is that one of the most stable medical insurance providers in Arizona will be declaring a multimillion dollars loss due to ACA requirements. (That is unsubstantiated rumor at this time) If this provider cannot make money in the personal insurance market why would anybody think a carrier offering low rates and high benefits could stay in business?
As ACA continues to roll out there will be higher rates, fewer carriers and more chaos but you need to be looking at stability and you need good advice.
Remember two things:
There is a difference between real insurance and the appearance of insurance!
People who sell you the “appearance of insurance” will go home to their families. You may lie in the hospital wishing you had better coverage and the premium cost will not matter to you at that point. Especially if your provider just announced they will be dropping your policy.
HINT: Save money by raising your deductible, setting up a savings account, being healthy, and insure the really big stuff that can ruin you. Fear is expensive – plan ahead instead.
Nobody but you knows what you really need, and you are the only person who it really matters to. Get the best advice, question absolutely everybody, get second opinions and do not ever be afraid to ask the questions and ask for verification.
If you have any questions, give us a call, (602) 381-9900.