Wednesday, June 15, 2016

Another 3000% Rate Decrease Report

Remember this?

I recently received renewals for some Grandmothered major medcial plans with August effective dates. Let's see how they fared this year. Both are HSA plans where the carrier pays 100% of covered expenses after the deductible:

Max is only a few short years from Medicare eligibility. His deductible (out-of-pocket) is a paltry $3,000 per year. He's been paying about $690 a month since last August; this year his rate will increase a modest 45%, to just shy of an even $1,000.

Sharon and Dave have a similar plan, albeit with a $5,000 deductible. They've been paying about $590 a month since last summer. Come August, though, their rate goes to $690 (a paltry 17% increase).

And remember, since these are Grandmothered plans they can't be changed, and most companies don't accept mid-year renewals as Special Open Enrollment triggers.

On the bright side, their current carrier will allow them to "upgrade" to ObamaPlans.

Let's see how that might work out, shall we:

Max may choose a $4,000 deductible (33% higher than his current plan) for the low, low price of just $852 a month (about 50% higher than his renewal). Plus, he gets to re-start his deductible for the year (and then again in January).

Sharon and Dave are also eligible for this tremendous deal: they can opt for a $6,000 deductible (20% higher than their current plan) for the bargain basement price of just $1,200 a month (about twice their renewal rate). And they, too, qualify for a brand new annual deductible to satisfy.

Come on down!
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