Huge increase in my health care from Oxford

[SteveL]

chap 38 referred to is for a law in the State of NJ, not the federal law....the section in question says: The rating system shall provide that the premium rate charged by the carrier for the highest rated individual or class of individuals shall not be greater than 350% of the premium rate charged for the lowest rated individual or class of individuals purchasing the same individual health benefits plan. The rate differential among the premium rates charged to individuals covered under the same individual health benefits plans shall be based on the actual or expected experience of persons covered under that plan; provided, however, that the rate differential may also be based upon age. The factors upon which the rate differential is applied shall be consistent with regulations promulgated by the commissioner, which shall include age classifications established, at a minimum, in five-year increments. There may be a reasonable differential among the premium rates charged for different family structure rating tiers within an individual health benefits plan or for different health benefits plans offered by the carrier.

The core of this is a limit of 3.5x between highest and lowest rates, and allows for age rating based on five year tiers. So a person who is 50 this year should see the same rates for the next five years, absent general rate increases.

Most states allow age banded rating tiers. Also, as people age they have more health problems, so if you are a for profit company, you want to link what you charge to the sections of your population of insureds who generate claims.

 

[DeborahB]

Oh this is less than thrilling... my COBRA coverage ($475) ends Jan. 31 and I'm shopping for a policy to cover me for the 16 months until I can go on medicare. I haven't applied yet - so no quotes so far. I planned for it to be hideously expensive so if it's less than my worst case scenario I'll be happy (sort of). I will hit Medicare 6 months before 2014 when most of the new provisions go into effect.

 

[Buckeye]

Oh this is less than thrilling... my COBRA coverage ($475) ends Jan. 31 and I'm shopping for a policy to cover me for the 16 months until I can go on medicare. I haven't applied yet - so no quotes so far. I planned for it to be hideously expensive so if it's less than my worst case scenario I'll be happy (sort of). I will hit Medicare 6 months before 2014 when most of the new provisions go into effect.

Rates drop drastically if you are willing to carry a high deductible. Be sure to use a broker. They are free and they can be of great assistance in the crazy world of individual health insurance.

 

[Mulligan]

Oh this is less than thrilling... my COBRA coverage ($475) ends Jan. 31 and I'm shopping for a policy to cover me for the 16 months until I can go on medicare. I haven't applied yet - so no quotes so far. I planned for it to be hideously expensive so if it's less than my worst case scenario I'll be happy (sort of). I will hit Medicare 6 months before 2014 when most of the new provisions go into effect.

I suggest you dont delay too long as you never know what snag might occur at the end. If you go to ehealthinsurance, you can put in your age and where you live and you can get an idea of how much a person in excellent health will pay at your age and location. If I remember correctly you can go out to 90 days to set your initial date of coverage, so you are inside that number now. Best of luck!