Death Spiral of Individual and Self Employed Health Insurance
Jun 13th, 2011
Self employed health insurance for individuals and entrepreneurs has been around for some time now, but it seems that it is now experiencing a death spiral. Why you may ask? The majority of the health insurance providers are beginning to discontinue the offering of insurance coverage for all individuals since the passage of the Patient Protection and Affordable Care Act. The vast majority of individuals who are involved with individual insurance coverage are children reaching the age of nineteen and are mandatorily removed from the family affordable health insurance policy.
This new wave of considerations is blanketing insurance providers from Blue Cross Blue Shield to Anthem insurance. Since the passage of the affordable care act the insurance providers have been working diligently to find new, creative, and innovative ways to accomplish the same task while discontinuing individual coverage for everyone nineteen years of age and older.
Whether or not that will also apply to the sport insurance coverage that is offered through all the high schools, colleges, and universities is yet to be realized. Make no mistake though, the self employed health insurance providers are seeing their profits diminish rapidly. Many of the health insurers have since begun to double the insurance policy rates for family policies, while a few have tripled their rates. Families are going into shock when they receive their renewal insurance policies and see how much the cost of an annual insurance policy has increased.
There are other insurance providers who have gone even further by raising the deductible per person. These same insurance providers then increased again the annual affordable health insurance policy deductible making it virtually impossible for any family member to make an appointment with the family medical physician again. Now the citizens should be really happy because they have gotten what they were wanting. All families will be paying yearlong for an insurance policy, but will no longer be afforded the ability to visit with the family physician.
The fact that all children are permitted to remain on the insurance policy of the parents is costing the entire industry millions of lost revenue. In addition, the various insurance providers are expected to allow for the annual physical and childhood inoculations by absorbing the entire cost. This is going to be a very difficult adjustment. In addition, the medical insurance self employed coverage and individual health insurance plans for all pre-existing conditions pertaining to children is going to be another major cost for the health insurer. It will be interesting to see how this will be resolved in the long-term or if a few of the industry, giants will merge for the sake of survival.
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