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Keeping in Touch
April 2004
What's New?
I hope that this newsletter finds all of you in good health and enjoying this wonderful spring weather.
These newsletters have become less frequent as I have found it necessary to contact members individually when their carriers announce changes or rate increases at the eleventh hour. Despite this, I encourage all of you to at least glance at this newsletter to see if it contains any information relevant to your situation.
All of the carriers have made changes. Sometimes these changes are made to comply with new laws. Rates rise or carriers change plan coverage to temper rate increases. Rate changes have begun to slow down, although your rates usually increase when you enter a new age bracket. The most drastic rate increase (effective 1/04) was that for the Blue Shield Spectrum Savings Plan. Regardless, this plan remains a smart choice for many people and it does qualify for the new Healthcare Savings Accounts.
I have updated my website to include live quoting. While this feature is not a substitute for the advice and feedback of an agent, it is a wonderful tool to help you compare plans and carriers. If you want to see how your plan compares to other in terms of services or rates, visit my website at www.cjbconsulting.net. Click on Quotes and Plans, then select the type of information you'd like to compare: Individual Health Plans, Individual Short Term Plans, or Group Health, etc.
Group Health Plans v. Individual Plans
I am often asked by clients with individual health plans if they should switch to group health coverage when it is offered by their employer. By law, employers must pay a portion on an employee's group health plan premium, so the group health plan is often less expensive for the employee. A group plan may offer richer benefits. Some people simply feel more secure with a group plan.
Before you switch to an employer group plan, please consider your own health care needs carefully. Individual coverage follows you, regardless of your employer or length of your employment. If you drop your individual coverage, you may not qualify for individual insurance the next time you need it. COBRA (and a Guarantee Plan for those who exhaust COBRA benefits) will often be an option for those leaving a group health plan, but COBRA rates tend to be more expensive than regular individual rates.
Some employers are willing to subsidize your individual coverage costs, so think about requesting this option before switching to the group plan.
Blue Cross
Rates have gone up, but the percentage increase is quite minimal compared with previous increases. Blue Cross has introduced a couple of interesting new plans: The Right Plan and the 3500 PPO Plan. The Right Plan is offered with comprehensive prescription benefits, generic prescription benefits and completely without prescription benefits. The out-of-pocket price is higher than with the PPO Share plans. The 3500 PPO Plan is very straightforward. Once members meet their annual $3500 medical deductible, Blue Cross pays 100% of most in-network services. Low premiums and immediate generic drug savings make this plan ideal for those interested in low premiums and low out-of-pocket expenditures.
Blue Cross Healthy Check Reminder
As you know, Blue Cross offers two levels of Healthy Check screenings. At both the $25 and $75 levels, you get your blood pressure, cholesterol and heart rate checked and your heart, lungs, abdomen and thyroid examined. You receive a health status report with a summary of your results. Additionally, you may also now receive these services:
- Confidential access to your health report via the Internet
- 3-month cholesterol re-check for participants with borderline results
- Discounted blood pressure home test kits for those with borderline results
- Discounted bone-density screenings for osteoporosis
For more information or to schedule an appointment, call 800-274-WELL. You may also find information about the screening services at www.bluecross.com/healthycheck.
Blue Shield
The big news was rates, particularly for those of you enrolled in the Spectrum Savings Plan. I had an in-depth discussion with Ken Roby, sales director for No. California, who explained that the 2002 rate increase was only half of what they needed. Ken further explained that the consolidation of hospitals (specifically in the Sutter system) had made it very difficult to negotiate with hospitals. While those of us on the Spectrum Savings Plan assume most of our costs until we reach the deductible, we also find that the out-of-pocket maximums are lower than with the other PPO plans. Please note that the Spectrum Savings Plan is HAS (Healthcare Savings Account) eligible. To brush up on HSAs, please check out www.msabank.com and check-in with your tax advisor.
Life Insurance
Yes, most of us procrastinate about getting life insurance. Please call to get a quote, even if you want to lose weight or quit smoking before you apply. Rates are often much cheaper than you imagine. Term insurance may be purchased for 5 to 30 years. Universal life insurance may be more reasonably priced and may make more sense for others. Don't delay-give me a call to discuss your options!
Health Net
Health Net plans tend to have less extensive networks than are provided by the Blues. Recently, however, Health Net has developed some less expensive PPO plans that might appeal to those wanting both low premiums and minimum out-of-pocket expenses. Call if you'd like more info.
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