Did You Get a Health Insurance Rate Increase? Tips to Reduce Your Health Insurance Costs

Chapel Hill, NC, November 02, 2007 --(PR.com)-- It's the time of year when many citizens across the state receive their annual health insurance rate increase. It's important to understand the reasons behind the increase, how to reduce your monthly payment, and how to avoid problems and rip-offs.

"The rate increases are almost inevitable, " says Jonathan Pletzke, consumer health insurance advocate and author of Get a Good Deal on Your Health Insurance Without Getting Ripped-Off, published by Aji Publishing LLC. "There are exceptions, such as last year when certain HSA rates actually went down. You can expect an annual adjustment based on how much the insurer spent on health care. For individual policies, increases will happen each time an adult hits a birthday ending in a zero or a five, i.e. 40, 45, 50, or when a child on the policy becomes an adult. We estimate that typical increases like this are in the $20-$40 dollar range."

How do you reduce your monthly cost for health insurance? The advice that Mr. Pletzke gives: "To start, you can raise the deductible, coinsurance, or copayment amount with your current plan, or changing plans to one without a copayment. For folks who are generally healthy, with no major medical conditions, they might consider a high deductible plan coupled with a health savings account. The reduction in premiums can be tremendous, and if you save the difference in premium, you could have the difference in the savings account within 16 months."

Other avenues to consider are changing the plan within the insurer or changing insurers. "Few people know this, but dropping the copayment option for many people will result in a huge change in premiums. If you don't visit the doctor more than a couple of times a year, consider that the discounted rate given to in-network visits is quite low. My experience locally has been that discounted simple doctor visits are in the $55-$65 range. You'll more than make up for the premium change if you don't visit the doctor every month" says Pletzke.

The United States General Accounting Office has identified that hundreds of thousands of people each year fall victim to health insurance scams. "If you're going to change insurers, make sure that you buy from a licensed agent in good standing, and buy from a licensed insurer" is the advice from Mr. Pletzke. He recommends finding an independent agent that is also a member of the National Association of Health Underwriters (NAHU) or the National Association of Insurance and Financial Advisors (NAIFA). "You can get free referrals to agents that specialize in health insurance from the NAHU and NAIFA groups on their websites. You should call the state department of insurance to check out any agent, and also get a list from them of the insurers licensed in your state" says Pletzke.

"Folks that have a serious medical condition should consider staying with their current insurer, and consider the impact of an increased deductible" says Pletzke. Since state law prohibits an insurer from increasing the rate of an individual customer based on claims experience, someone who has just undergone or is going through treatment may do well to stay put. Changing insurers, or even changing plans, may require medical underwriting which would mean a higher rate for the consumer. "The only other option is to get on an employer plan with a large employer through a spouse" says Pletzke, for those with a medical condition that prevents working. Consumers are cautioned to keep current on health insurance payments when they have a medical condition because re-applying for insurance will typically mean a much higher rate.

Consumers can learn more and get their health insurance buying questions about individual health insurance, association group health insurance, employer health insurance, and small business health insurance answered at www.BestHealthInsuranceBook.com, a website setup by publisher Aji Publishing LLC. According to Pletzke, "There is no one site on the Internet the provides an insurer-free or agent-free environment where you can learn about and get help buying health insurance. All of the online resources are free, and we include links to important national and state resources."

The book Get a Good Deal on Your Health Insurance Without Getting Ripped-Off can be ordered through most book retailers, and purchased online at Amazon.com, BarnesAndNoble.com, www.BestHealthInsuranceBook.com, and www.AjiBooks.com.

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