Insurance Increases

Today I received my annual doom letter from the health insurance company announcing the premium increase for the coming year.  In recent years the increase has been substantial, as much as a 31% last year alone.  This year the increase is only 8%.

Earlier in the summer, I received a survey letter from my insurance company which basically wanted to know if I had any other health coverage from any other sources.  Sorry, nope.

Within the letter below, you may notice that CareFirst offers to discuss other product options which may better fit my financial needs.  Not too tempted.

Although premiums will now cost me $5604 for the coming year, CareFirst is finally covering my medical needs.  I'm not ready to rock the boat just now.  I'm a financial loss for them with Rituxan infusions alone costing $45,000.  Office visit, MRIs, etc on top of that add up.  My apologies.

My out-of-pocket limit is $2500 of which the drug company is covering a large portion.  My deductible is negligible.  Office visit copays are $25 for primary care and specialists.  My coinsurance is only 10%.  Major medical coverage is good.

So after I have become an expensive client and premiums continue to rise, CareFirst offers to discuss other options.  Since none of these other options available carry more than $1500 annual coverage for prescription drugs, I'm satisfied to stay with what I have.  I don't need any surprises.

Like I said - I'm not ready to rock the boat just now.  I've finally experienced what it is like to have health insurance coverage which covers.  I want to enjoy it for a bit longer, even if it costs me.

Dear Member,

The purpose of this letter is to inform you of your premium rate for the upcoming year.  Please take a moment to review this important information.

Your current monthly premium is $431.00.  Beginning 10-01-2010, your monthly premium will change to $467.00.

As a non-profit organization, we seek to provide you coverage at the lowest possible cost and with the least profit margin.  CareFirst expects to earn less than one penny from each dollar of premium revenue we generate in 2010 and this goes into our reserve for your protection.

We value your membership and recognize the financial challenges health insurance premiums pose to you and other subscribers.  Should you be interested, we welcome the opportunity to explore with you other CareFirst products and options that may help reduce your annual premium and better fit within your budget.

.....

Sincerely,