Monday, January 20, 2014

Twisting the Cost Curve

One of my clients inadvertently let his pre-ACA health insurance plan lapse this past fall. Unfortunately, he didn't act quickly enough to get it reinstated.

So we've been looking at new ObamaTax plans, and he's in for rather a shock:

His "old' plan was a $2,500, 0% co-insurance HSA plan. That is, once he met his $2,500 annual deductible, covered expenses were paid at 100%. His monthly premium was just about $265.

Fast forward a couple months, and here are his choices: a $6,000 deductible, 0% co-insurance plan for about $400 a month; that is, a 240% increase in out-of-pocket along with a 150% premium increase.


If he'd like to get back down to somewhere close to his previous out-of-pocket max, he could choose the Gold option with its sexy and seductive $2,000 deductible (and no co-insurance) for the low, low monthly price of ... wait for it .... $647 a month, or 245% higher premiums.

Could be worse.
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