[Welcome Industry Radar readers!]
Regular IB reader and commenter Brad Ford (himself an agent, although primarily on the P&C side) alerts us to this rather disingenuous article at the Gray Lady:
Really?
And how might that be?
According to a study done of folks covered by high deductible plans by investment firm [ed: investment firm? Gee, those guys sure have a lot of cred ] Fidelity, about half of those surveyed "said they or a family member had chosen not to seek medical care for minor ailments as many as four times in the last year to avoid paying the out-of-pocket expenses."
What would have been helpful is to have determined how many folks covered under "regular" (i.e. co-pay) plans also eschewed care. After all, even co-pays can begin to add up. As we've repeatedly pointed out (and as Brad reminds us), insurance should be there to cover our catastrophic claims, not every ache and sneeze. In fact, over-utilization is a major contributing factor when comparing rates for co-pay and high deductible plans.
And it flies in the face of what we've previously seen: that folks who have a stake in their own health care tend to make more carefully considered decisions, and don't tend to skimp on care.
Brad also points out another major fallacy in the article: lifetime caps. These are the "outer limits" health plans - virtually ALL health plans, not just HDHP's - put on policies to mitigate exposure. These can range from $100,000 (dangerously low) to $5 or even $7 million (way more than adequate). The article's author, Walecia Konrad, also seems to have no clue as to how these plans actually work:
"Some severely restrictive plans will cover only a handful of doctor visits a year after the deductible is met."
Really? Name one HDHP with such a feature. On the other hand, many carriers are now offering reduced premium (and reduced benefit) co-pay plans with just such limitations. My professional opinion is that these provide a false sense of security and a minimally reduced cost, certainly not worth the trade-off. But Mr/Ms Konrad seems not to have understood the distinction.
I also found this little tidbit disturbing:
"If you use a Web site like ehealthinsurance.com, you can find out more about each price quoted by clicking on “plan details” and reading carefully, looking for the categories listed above. If you do not find the specifics you need, call the insurer’s customer service department and ask."
First, using an online service to buy health insurance is, at best, playing Russian Roulette with your own health: there are literally thousands of carriers and plans available, and choosing the right one presents a daunting challenge. Add to the the likelihood that one will buy too much insurance. And of course, contacting the insurer, while not a terrible idea, only tells you what that carrier will offer, not how their products, service and network stacks up in the marketplace.
This is why finding - and using - a professional, independent agent is so critical. Health insurance (any insurance, really) is a poor candidate indeed for DIY.
And relying on the advice, let alone "expertise" of a journalist for tips on shopping for health insurance is no less foolhardy.
Posts
