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February 20

Demand Drives Up Prices of Individual Policies

Posted by admin
Filed under Health Insurance | 5 Comments

As more and more people lose access to employer based health care for various reasons, the demand for individual health insurance policies has increased noticeably. Golden Rule, a subsidiary of United Healthcare reports that the sale of individual policies has gone up 24% just in the past two months. Unfortunately, because an individual cannot negotiate a smaller rate based on pooling together with a large group of people, the average person is at the mercy of whatever premium the private insurer deems fit to offer them. This can vary based on prexisting conditions, age, height and weight ratio, and a number of other factors. On top of that, private insurers are inacting rate increases of as much as 30% to current members, and many people have no choice but to pay these higher premiums to maintain coverage. How will Obama’s proposed reforms affect the structure of the private insurance marketplace? Will there be some sort of control imposed on these increases, or will they just keep going up?

This entry was posted on Friday, February 20th, 2009 at 12:47 pm and is filed under Health Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

5 Responses to “Demand Drives Up Prices of Individual Policies”

  1. Jake Kane on February 20th, 2009 at 1:02 pm

    I need an individual health policy. Where do I go?

  2. Bud L on February 20th, 2009 at 1:12 pm

    I can’t see price fixing being imposed. Consumers need to shop other carriers frequently where pre-existing conditions to not preclude their doing so. It is a competitive marketplace in spite of increases in admin costs etc. Obama’s proposed reforms were campaign-based. We’ll just have to see what is politically and economically feasible and WHEN before rushing to judgement.

  3. Kirsten on February 20th, 2009 at 1:38 pm

    Not really sure. We will have to wait and see but I don’t think it is top on his list.

  4. Franky on February 20th, 2009 at 6:17 pm

    Nice job. I completely agree with you.

  5. Brad on February 21st, 2009 at 2:17 pm

    You are a very smart person!

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