sticker shock on group rate HI

[figner]

I belong to a musician's association that advertises group health insurance through The Entertainment Industry Group Insurance Trust (TEIGIT). Although I'm currently covered through my employer, I thought I'd check out whether the TEIGIT option would be a feasible backup plan in ER.

I was completely shocked to see that their group rate for an individual in my area (Los Angeles) is $1800 per month for their cheapest, HMO plan. The POS plan is $2600/month!

Is there any reason to ever choose a plan with such high costs? At that point if you've got pre-existing conditions would it be better to try a high-risk pool?

 

[frank]

sounds like you are getting a group rate and I don't know what group that might be but it is expensive. I checked around for health insurance for my dw and it was terribly expensive through an individual plan. so, I looked around for some kind of group plan with lots of members. I joined the farm bureau, you do not have to farm to be a member, it cost 40 dollars a year. then I was eligible for farm bureau insurance who's insurance company is bc/bs. the rate was about 50 percent cheaper than elsewhere, because farm bureau is nationwide. plus you get a magazine every week that tells you what the farm markets are doing, but if you don't farm, it is interesting to see how they do business and what they're problems are, anyway check it out, it may be available to you where you live and maybe not, I live in the midwest, so it is available.

 

[teejayevans]

Maybe musicians have higher health costs because of their lifestyle ;-)
TJ

 

[frank]

is medical marijuana available to band members under their union? If so maybe I will join a band, heard that medical stuff is all the rage in california.

 

[figner]

Heh, one of my first thoughts too was that people in the entertainment industry must have really unhealthy lifestyles! I even called TEIGIT to double check that the rate was correct, and asked if they had any participants at those prices. The phone rep assured me people really did buy these plans.

Frank, thanks for the tip about the farm bureau, I will check it out.

 

[Corporate ORphan]

sounds like you are getting a group rate and I don't know what group that might be but it is expensive. I checked around for health insurance for my dw and it was terribly expensive through an individual plan. so, I looked around for some kind of group plan with lots of members. I joined the farm bureau, you do not have to farm to be a member, it cost 40 dollars a year. then I was eligible for farm bureau insurance who's insurance company is bc/bs. the rate was about 50 percent cheaper than elsewhere, because farm bureau is nationwide. plus you get a magazine every week that tells you what the farm markets are doing, but if you don't farm, it is interesting to see how they do business and what they're problems are, anyway check it out, it may be available to you where you live and maybe not, I live in the midwest, so it is available.

Frank,
Great idea on the Farmer's Bureau. I have been raking my brain trying to figure out how to get a decent "group" rate. Thanks the suggestion. I checked and it looks like in MO I can join the Farm Bureau for $30 a year and they offer individual and group health insurance. My COBRA will be expiring this year so I will need something soon. Did you get the group or individual rate?

Also, can you tell me who the insurance is through?

Thanks!

 

[frank]

I got the group rate through farm bureau but it was on my wife only as I am on medicare and have a cheap hmo locally with no health problems. the insurance carrier was wellmark blue cross/blue shield. that is the thing about farm bureau it is always the group rate because the farm bureau gets the group rates for all farmers.

 

[ziggy29]

These "affiliation group" health plans are often the most expensive of all, even more expensive than the full cost of employer-provided group health insurance, because they are extremely susceptible to the adverse selection problem.

 

[NW Landlady]

Ziggy +1
I am on an HMO plan with a $2k annual deductible (catastrophe plan) + 80/20 copay & I pay less than $300/month. Not a specific group affiliation per se. This is WA state & I am in my late 50s....but not much more for those in their 60s.

 

[ziggy29]

Ziggy +1
I am on an HMO plan with a $2k annual deductible (catastrophe plan) + 80/20 copay & I pay less than $300/month. Not a specific group affiliation per se. This is WA state & I am in my late 50s....but not much more for those in their 60s.

Another way to look at it is this: If Megacorp will subsidize all but (say) $200 a month for family coverage, it makes little sense for anyone (even the younger and healthier) to opt out of it. But when there is no employer subsidy, that $200 a month becomes more like $1000 a month, and suddenly many of the "lower risk" folks opt out of it or seek their own individual policy. So what's left is what the individual market hasn't "cherry picked" out of non-employer group plans and those who aren't willing to gamble that their good health will continue.

 

[frank]

my dw has an hsa health plan with 1600 deductible and 389. per month. every other health plan I checked was considerably higher. we used to carry an individual plan and they went up exponentially every time some one hit an age band or health problem, the thing about farm bureau is that, everyone gets the same increase considering the age bands, so If I get an increase it will be the same as everyone else. I got a kick out of reading the agenda for my local city council, they were debating on the amount that the municipal workers had to pay. it was 25. a pay period family plan for health insurance, 5. a pay period for dental family plan, and the city would pick up the balance.

 

[frank]

wellmark is in iowa and it does not have online quotes, you have to talk to one of their insurance reps. the price I have is one of the options that was the best for me as my wife has a pre=existing condition. they have different levels and deductibles depending on what you want, or what size deductible you are willing to deal with.

 

[Corporate ORphan]

So if I understand correctly, the Farm Bureaus allows you to get a "group rate". THey are not just an insurance broker. I have been looking on the internet and it seems that some of these "associations" are just brokers. Like the NASE ... National Assoc of the Self-Employed.

We are hoping to relocate (just don't know where yet!) and from the posts on this board it sounds like BCBS is not "portable". I really don't want to go through underwriting again if we do. Any idea if they handle any companies beside BCBS?

We also would like to travel some and some of these policies that I have looked at don't cover much "out of network".... I guess the trick is to find a company that is nationwide as possible so it's "in-network"?

Thanks again!

 

[dgoldenz]

So if I understand correctly, the Farm Bureaus allows you to get a "group rate". THey are not just an insurance broker. I have been looking on the internet and it seems that some of these "associations" are just brokers. Like the NASE ... National Assoc of the Self-Employed.

We are hoping to relocate (just don't know where yet!) and from the posts on this board it sounds like BCBS is not "portable". I really don't want to go through underwriting again if we do. Any idea if they handle any companies beside BCBS?

We also would like to travel some and some of these policies that I have looked at don't cover much "out of network".... I guess the trick is to find a company that is nationwide as possible so it's "in-network"?

Thanks again!

NASE sells garbage limited-benefit plans, stay away. BCBS plans are generally not portable to other states. Other major companies like Humana and United Health One generally are, but it may depend what state you're in now and what state you plan on moving to. BCBS and United will have the two largest networks in the US assuming you are looking at PPO plans. BCBS has some out-of-country coverage, every other company I know of only considers out-of-country payable when it's a life or death emergency and then it's treated as out of network.