Are You Protected If Your Health Insurance Company Goes Under? Searching For Health Insurance Prices

Some consumers elect smaller insurance companies and unfortunately, this comes with risk. Smaller companies face higher risk of going under. When these companies go under, policyholders can face numerous problems. Typically, when this atrocity occurs, the policies become what are called “lost” and this includes the coverage as well. There is good news to this scenario with online health insurance companies that evaluate possibilities of companies going under due to financial failure. This allows consumers to switch other providers while not being left holding a plan that is now considered worthless. When you are seeking affordable health insurance quotes, ensure that you check the financial standing of any corporation before purchasing a medical policy.

How can I find out if the insurance company is at risk of going under?

In determining if a company is likely to go under, you should review the history of the company. Any company that offers reliable health insurance has to maintain capital, which allows them to receive good credit scores and heavy backing from financial institutions. You will be surprised to learn that financial institutions own most medical insurance companies. You want to conduct business with a company that has history in the medical insurance industry. Having a good history in the industry allows them to offer insurance under the regulations of federal and state laws. The best insurance companies not only offer great coverage with their medical policies but affordability with their health insurance rates.

What if the company cancels my policy?

If a company cancels, your policy due to going under, you must switch as soon as possible to a new health insurance provider. The fastest way to perform this task is with online health insurance companies that can give you instant proof of coverage upon purchasing their affordable policies. Most companies that are going under will typically give some type of notice to their policyholders before they go out of business. This allows consumers to find other coverage therefore avoiding long lapses in their medical coverage.

What am I entitled to if the company goes under?

If you find yourself in the situation of your medical insurance company going under, do not panic. It is mandated by law to pay you back any unused portion of your insurance premium. If they do not pay the money back to you in a timely fashion, you can file a complaint to your local state insurance commission who will conduct an investigation. The best way in avoiding insurance companies that go under, is to perform as much research as possible in viewing the history of the company and any complaints filed against the company. As you can see, conducting careful and thorough research is mandatory when trying to find the best health insurance quotes for you and your family.


Health Insurance Company

Health insurance is a form of insurance where the insurance company pays the medical costs of the insured person in cases the insured becomes sick due to covered causes of the insurance policy, or due to accidents.

To get the best health insurance policy, it is necessary to evaluate the health insurance company and its affiliate health care network. The first thing that has to be done is to get free quotes from different health insurance companies. This is easily available on the Internet, wherein you fill in some details to get your health insurance quote. Another thing that has to be taken into consideration is the health insurance company’s financial ratings. This gives us the financial strength of the health insurance company, and whether it is capable of clearing claims made to the company. The ratings can be found out though free resources like Moody’s, A.M. Best and Weiss and eHealthInsurance, which are all found on the Internet.

Next, check the employment and educational histories of the doctors associated with the health insurance company. Trusting the physicians and feeling content with the care you receive from the health insurance company is invaluable. Customer satisfaction is another criterion for choosing the right health insurance company. The health insurance company should respond quickly to your requests and questions. Information on patient satisfaction with a health insurance company is difficult to come by and may have to be paid for.

There are two types of health insurance companies: group health insurance companies and individual health insurance companies. The group health insurance companies handle health insurance for large groups of people, like the employees of a company. The individual health insurance companies handle health insurance for self-employed people and professionals.


Health Insurance Companies Aren’t Gouging Us? Take a Look at the Numbers

The much-maligned health insurance industry has not always deserved the contempt it receives. These companies are usually accused of caring only for profits, but those profits are not as great as most of us imagine. There is room for some improvement in the industry, but such improvements will not reduce health costs significantly. A clear understanding of your policy will go far to reduce the hostility many feel towards this essential industry.

Most commercial health insurance companies have three objectives: collect dollars from premiums, pay off overhead with what’s collected, pay off claims, and have about 3 to 6 percent of the total collected remaining as net profit. This profit goal is relatively modest. Americans pay $2 trillion dollars a year on health care, including the operating costs and profits of health insurance companies. This averages out to approximately $6,551 for each man, woman and child in the United states, or approximately $537 a month. At a 6 percent profit, the industry is earning $120 billion a year. This averages out to $387 a year, or $310 million in total from what Americans pay towards the insurance companies’ profits, or $32 a month. A mere 5 percent of what you pay each month for health insurance goes to the profits of the insurer. You pay that percentage to a taxi cab driver as a tip. Obviously, the health insurance companies are not charging their customers an excessive percent of the total for health insurance. Yes, they are in it for the money, but they’re not gouging us.

All organizations have some leakage of cash, and the health insurance industry is no exception. Their organizations spend a great deal on administrative costs, streamlining their operations, and increasing efficiency of operations. All this may go to reduce their operating expense and thus, the cost of insurance for us, but we can’t expect significant savings here.

Yet the new Health Reform law is requiring health insurance companies to spend 80 percent of those $2 trillion on medical treatments. That means they’ll have $400 billion left over. Subtracting their profits ($120 billion), they’ll have $280 billion to cover overhead. If they are able to reduce operation costs by just 1 percent, or $2.8 billion, and turn that into premium reductions, the $537 each person now pays is then reduced to $528, a savings of $9 a month or a savings of $108 a year. Although every penny counts these days, these numbers aren’t too significant to most of us.

Health insurance companies have been mandated by the new Health Reform Law to modify some of their policies, which may raise the cost of insurance. They are now prohibited from dropping people from insurance while they are sick. Now, they cannot deny coverage to children with pre-existing conditions. They can no longer impose a cap on the amount they will pay during a person’s lifetime. In 2011 they have to start paying 80 percent of their earnings towards medical treatment. In 2014 they can no longer refuse to sell policies to anyone, with or without a pre-existing condition, and the price they set for policies can’t be based on the customer’s health condition. So, by 2014, no one will be excluded from obtaining health insurance in the United States.

These measures, particularly the provision that doesn’t allow insurance companies to deny insurance based on a person’s health status, will go a very long way in reducing our overall health care costs. With universal coverage, many illnesses can be cured in their early stages, thus avoiding the most expensive treatments, those in the emergency room.

All of us should pursue a clearer understanding of the purpose of health insurance companies. They are not humanitarian, non-profit organizations, but businesses with the objective of making a profit. Much of the misunderstanding is fostered when an ailing patient is told by the insurer that their medical requirements are not covered by their policy. It is therefore absolutely imperative that you’re clear about what your policy will cover before you enter into an agreement for coverage. Nobody likes to spend money needlessly, but when it comes to spending money on your health, without an insurance company, you could do worse. Know your policy and expect health insurance companies to strictly abide by it. Whether we like it or not, we can’t do without them, and they can’t do without us. You’ll appreciate them most when that $13 thousand dollar bill comes in following a brief visit to the emergency room, and you don’t have to pay a dime. Then spend or save that $13 thousand for your future needs, such as college or retirement!