Medical insurance increase

[Time2]

I just got a 20.2% increase in my wife and daughters BCBS health insurance.
Yes they are both a year older, and I'm sure medical care costs have increased, but 20.2%?
Mostly a rant, not much I can change. The bright side, my daughter will soon, (less that 2 months) be getting a position with insurance of her own.

 

[Aerides]

How did you get a premium increase in May, unless you made a life-change thing?

 

[Sunset]

Is this a medicare supplemental insurance , if so which letter. ?

Or is it pre-medicare health insurance ?

 

[Time2]

How did you get a premium increase in May, unless you made a life-change thing?

We are not on the ACA. ( I think that is the answer) The notice was written 4/22, I received it 5/2 and it is effective 7/1.

 

[Aerides]

We are not on the ACA. ( I think that is the answer) The notice was written 4/22, I received it 5/2 and it is effective 7/1.

What kind of insurance then? It doesn't sound like any standard plan, not employer insurance, so your experience would not be typical.

 

[Time2]

Is this a medicare supplemental insurance , if so which letter. ?

Or is it pre-medicare health insurance ?

It is a grandfathered BCBS policy for wife and daughter, neither of whom have reached Medicare age.

 

[Time2]

What kind of insurance then? It doesn't sound like any standard plan, not employer insurance, so your experience would not be typical.

It is a grandfathered in plan that was deal when I first got it for my family of 4. I was paying $5,256 a year with a $10,000 deductible/OOP. 4 years after the ACA regulations started, the price had doubled, although it was still much cheaper than the ACA. It now covers a 30yr old and a 63yr old, for $620 a month, now increased to $745 a month.


(please don't anyone tell me your ACA policy cost is less, unless you include the taxpayer provided subsidy in the cost) Thanks

 

[PaunchyPirate]

It is a grandfathered in plan that was deal when I first got it for my family of 4. I was paying $5,256 a year with a $10,000 deductible/OOP. 4 years after the ACA regulations started, the price had doubled, although it was still much cheaper than the ACA. It now covers a 30yr old and a 63yr old, for $620 a month, now increased to $745 a month.


(please don't anyone tell me your ACA policy cost is less, unless you include the taxpayer provided subsidy in the cost) Thanks

$745 per month for 2 at those ages is not surprising to me. I'm surprised it's not more.

 

[Time2]

$745 per month for 2 at those ages is not surprising to me. I'm surprised it's not more.

Yes, it is low compared to the ACA, I might add, last year I got a 26.6% increase. That makes at least five close to or more than 20% increases in 10 years since the ACA regulations started.

 

[cathy63]

...
Yes they are both a year older, and I'm sure medical care costs have increased, but 20.2%?...

It's not how much medical costs have increased for the general population but for the group that's covered by this plan. Since this is a grandfathered plan, I'm guessing that no new members can join except maybe immediate family? If that's the case, the group is shrinking as some age out to Medicare and others get employer insurance like your DD or switch to subsidized ACA plans. It's mostly younger people who will benefit financially by switching to employer or ACA plans, so I'd hypothesize that the average age of the group is increasing by more than 1 each calendar year.

Older people, more medical problems, more expensive medical problems, fewer members to share the burden ... I think you're going to be seeing similar increases as long as your wife is on this plan.

 

[pb4uski]

$745 per month for 2 at those ages is not surprising to me. I'm surprised it's not more.

+2. $745 is pretty good for 2 adults.

 

[ncbill]

It is a grandfathered in plan that was deal when I first got it for my family of 4. I was paying $5,256 a year with a $10,000 deductible/OOP. 4 years after the ACA regulations started, the price had doubled, although it was still much cheaper than the ACA. It now covers a 30yr old and a 63yr old, for $620 a month, now increased to $745 a month.

(please don't anyone tell me your ACA policy cost is less, unless you include the taxpayer provided subsidy in the cost) Thanks

So how much does it drop when daughter is off the policy in only another couple of months?

We're currently paying nearly $1,000/month as the 'employee share' for family coverage (employee, spouse, any # of kids) via my wife's employer.

My youngest will be on their own insurance as early next month (post-graduation) so ours will drop down to just 'employee & spouse.'

Kid gets a sweet deal: premium under $50/month, annual deductible under $200, annual maximum out-of-pocket under $1,200.

 

[harllee]

Time2 I think the cost of your plan is a bargain. Pre ACA DH and I had Blue Cross policies with a $5000 deductible (and NO prescription coverage) and the cost was around $1000 a month each and that was over 10 years ago.

 

[anethum]

It is a grandfathered in plan that was deal when I first got it for my family of 4. I was paying $5,256 a year with a $10,000 deductible/OOP. 4 years after the ACA regulations started, the price had doubled, although it was still much cheaper than the ACA. It now covers a 30yr old and a 63yr old, for $620 a month, now increased to $745 a month.


(please don't anyone tell me your ACA policy cost is less, unless you include the taxpayer provided subsidy in the cost) Thanks

Does your grandfathered plan follow the same rules as an ACA plan, such as no lifetime or annual limit in medical coverage expenses? Without such protections to enrollees, I wouldn't consider a grandfathered plan with lower premiums to be a bargain.

One way or the other, a health insurance plan will balance out risk-wise for the insurance company. Under the ACA rules, an ACA plan must pay out at least 85% of premiums it receives for medical care. If not, they must reimburse the difference to enrollees. Do you know what percentage of premiums your grandfathered plan pays out?

 

[fh2000]

I also received a letter from Blue Shield of California that my Medicare Supplement plan G will increase 12% effective July 1, 2022. They state that this is due to annual premium adjustments and will be the only rate change for the year.

I picked Blue Shield of California for this year since they had the lowest rate, but I did not realize they could increase premium mid-year. I will be shopping for a new plan close to my birth month thanks to California birthday rule.

 

[Time2]

Does your grandfathered plan follow the same rules as an ACA plan, such as no lifetime or annual limit in medical coverage expenses? Without such protections to enrollees, I wouldn't consider a grandfathered plan with lower premiums to be a bargain.

One way or the other, a health insurance plan will balance out risk-wise for the insurance company. Under the ACA rules, an ACA plan must pay out at least 85% of premiums it receives for medical care. If not, they must reimburse the difference to enrollees. Do you know what percentage of premiums your grandfathered plan pays out?

I don't know what rules it has to follow, although, I know it has been forced to follow some rules after the ACA regulations started back in 2012. In 2010 and 2011 I had increases of 7% and 8.1%, then in 2012 (post ACA Regs) I had a 19.4% increase, in 2013, a 21% increase and in 2014 I had an 18.8% increase. I attribute half or more of those increases to ACA Regulation being forced on my plan.
OK, you made me do it! I got out my plan book and found on page 88 of 103 pages,The lifetime Maximums are unlimited. I think this was an ACA reg, because years ago, I do remember a limit.

I have a weak memory of getting a check from BCBS because they didn't payout enough, so I think they may be under that rule also. I suspect my daughters policy is about $250 of the $745 premium, I should know in about a month, my wife has two years before she goes on Medicare. After that, no more increases!! Except for Medicare, Plan G and Plan D.

 

[harllee]

I also received a letter from Blue Shield of California that my Medicare Supplement plan G will increase 12% effective July 1, 2022. They state that this is due to annual premium adjustments and will be the only rate change for the year.

I picked Blue Shield of California for this year since they had the lowest rate, but I did not realize they could increase premium mid-year. I will be shopping for a new plan close to my birth month thanks to California birthday rule.

You are lucky you can change Medicare supplements without health underwriting each year. Here in North Carolina, you have to go through medical underwriting to change Medicare supplements. My DH has a preexisting condition and is stuck with his original Medicare supplement even though the price has gone up substantially.

 

[Zona]

We also have individual pre-ACA grandfathered BCBS plans. Have had them nearly 20 years at this point. Our premiums go up by a bit just about every year, with a bigger bump up when DH or I hit a “milestone” age — 40, 45, 50, etc. Basically we move up to the next age tier of coverage. Perhaps that is the case for OP’s situation?

Edit to add that for our plan, the yearly adjustments take place in October. But, the “birthday present” adjustments happen during the birthday month, so we get a pro-rated adjustment upward for that quarter’s payment, followed by the permanent increase for future quarterly payments.

 

[Bamaman]

I'm paying for my daughter's BCBS Blue policy, and it's about $378 a month for a 34 year old. It too is one of the grandfathered policies that will never be available if cancelled--relatively low deductibles and co-pays. And in every letter we get, they stipulate this policy will not be offered again. And the premiums go up yearly--$30 or so. She can get coverage thru work @ $170, but the terms/limits are just so terrible.

With the advent of the ACA, so many options in healthcare have made any decisions difficult. And the deductibles and co-pays for the social class the ACA was intended to help are out of their capabilities to pay. The poor continue to be uninsured and clogging up hospital emergency rooms using it as a unpaid clinic.

I'm just glad to have Medicare & Plan F--the Cadillac of all Medigap plans. I switched from Plan G to Plan F in the middle of the year--something I didn't realize you could do. That way we have no deductible on our Plan B Durable Goods.

With my wife's seemingly unending series of orthopedic and back surgeries, we'd be sunk financially without the best Medicare Supplement plans. That 12/2021 neurostimulator alone was $65K--paid to the hospital. Her upcoming quadruple discectomy and spinal fusion is so horrendous the surgery takes two days--10 to 12 hours. She'll remain in the hospital a week.

And life goes on . . . . . . . . . . . . . .

 

[Scuba]

It's not how much medical costs have increased for the general population but for the group that's covered by this plan. Since this is a grandfathered plan, I'm guessing that no new members can join except maybe immediate family? If that's the case, the group is shrinking as some age out to Medicare and others get employer insurance like your DD or switch to subsidized ACA plans. It's mostly younger people who will benefit financially by switching to employer or ACA plans, so I'd hypothesize that the average age of the group is increasing by more than 1 each calendar year.



Older people, more medical problems, more expensive medical problems, fewer members to share the burden ... I think you're going to be seeing similar increases as long as your wife is on this plan.

I believe you’ve hit the nail on the head. We are also on a grandfathered pre-ACA plan and that is exactly what we learned years ago. We’re just hoping we can stay on it until we qualify for Medicare. Our increases since retirement have averaged in the 20% range.