It's sure not any secret to anyone who buys individual health insurance that rates continue to climb and benefits continue to drop. As we have told clients for the last few years we are selling $5000 deductible plans for about the same price as $500 deductible plans six years ago. The rapid rise in premiums are the result of Obamacare. Less people in the pool of buyers. Higher than average medical costs for drugs and hospital services.
Many people who are covered at work for the government or large companies are shocked at the premium costs. One has to wonder where all of this will end. I am not sure and neither is anyone else. What we are seeing from an insurance agents standpoint is far less support from insurance companies to the agents and lower commissions. There will be in the next five years a real shortage of agents that selling individual policies. Why you might ask? Rates go up 15 to 20 percent each year and with reduced commissions and the service (or lack of service from insurance companies) agents are chosing to sell other products.
I receive a call each day from a prospect who is very confused by the many options and insurance companies that still offer policies. Just go to any site (mine is http://www.danmcbrayer.com/) and get a quote and look at all of the choices. Agents are needed to help customers thru the maze of all of this. Years ago (35 to be exact) it was much easier to buy health insurance. No ppo's no hmos, usually you had a $250 deductible with doctor visits, drugs, and such going toward the deductible and they all paid 80/20 to say $5000, then 100%. Policy max was $250,000....my have things changed.
I have no idea what the future holds for individual health insurance. I know that the Obamas of the world want a single payor plan and who knows....one may be over the hill. Until next time. Thanks for reading!
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