How does health insurance protect enrollees?
by Admin
Posted on 27-07-2022 10:05 PM
Most health insurance providers offer low-cost plans for healthy people. They’re called “catastrophic” health plans and are designed to protect you from worst-case scenarios.
These catastrophic health plans (aka health insurance for healthy people) usually come with a high deductible to keep your premium low.
Adverse selection increases premiums for everyone in a health insurance plan or market because it results in a pool of enrollees with higher-than-average health care costs. Adverse selection is a byproduct of a voluntary health insurance market in which people can choose whether and when to purchase insurance coverage, depending in part on how their anticipated health care needs compare with the insurance premium charged. The higher premiums that result from adverse selection, in turn, may lead to more healthy individuals opting out of coverage, which would result in even higher premiums. This process typically is referred to as a “premium spiral.
Because of the high monthly costs, insurance plans without a deductible are less popular than other plans that have lower monthly costs. Only about 17% of the national workforce has health insurance with zero deductible. In comparison, high-deductible plans are much more common, and 51% of the population are enrolled in plans with deductibles higher than $1,400 for individuals or $2,800 for families. High-deductible plans are even more common for those who purchase health insurance through the individual marketplace. However, the attractiveness of the low monthly payments for these plans could leave some people underinsured and unprotected from major health expenses.
Health insurance is a very personal type of insurance protection for you and your family. It’s important to know that the coverage you have (and the deductible that goes with it) are working in your best interests! that’s why you need a top-notch independent insurance agent on your side to guide you through finding the best health insurance for you. We have the folks for the job, and you can find them through our endorsed local providers (elp) program. Find an independent agent today!.
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