Crazy high rates
I’ve been with the same health insurance company for years now, since about 2002. My premiums were about $250/month, with a decent deductible and a low co-pay as well. I was pretty happy with the service, and it kept my parents from nagging me about getting insurance. So it worked on different levels.
Then, in 2005, I tried to add my wife to plan and include maternity coverage as well. Adding her raised my premiums to $582/month which was astonishing, but women need to go to the doctor more, so I was fine with that. This year, as we are possibly trying to have a child, I called to make sure that the policy included the maternity coverage as requested.
It did not and there was no way to add it. After speaking to a few people at our insurance company, I got them to allow me to add the coverage as long as it was backdated to the time she joined the policy and pay the past premiums. I said fine and send me a quote as to what the cost would be. Keep in mind, I assumed that the $582/month already included maternity coverage on it, so I wasn’t expecting a huge increase or bill. Maybe a few thousand dollars in back premiums and $100 or so per month extra at worst.
So I open my mail the other day, and I get this letter from Assurant Health.
This letter is to advise you that if you were to add the Maternity Rider effective December 15, 2005 the total amount due would be $11,206.58.
….
We apologize for the amount of time it took to respond to your correspondence.
I omitted the boring part of how they broke down how they came across the figure. I liked how they apologized for how long it took to get back to me; they should have been apologizing for trying to pass this off as a reasonable amount to pay. $11,000 ? Assuming you have a child without insurance, it costs between $10,000 and $20,000 or so. So, I’m almost half paid off anyways. What’s the point of this insurance? Really?
So I placed a call to Assurant Health and talked to someone on the policy holders’ line. I asked her what, on top of that $11,000, would happen to my monthly premiums if I went ahead and paid. She said my premiums would go from $500 per month to $1200 per month. I was flummoxed and asked if she thought $1200/month was reasonable for 2 people, in their early 30’s, non-smokers, no health problems, etc. She said that she has seen higher. That was helpful. She asked if there was anything else she could do to help. Other than pay off that $11,000 pill and not rape me for $1200 per month, not really.
I called around just a few moments ago and reached Blue Cross/Blue Shield. I’ve heard of them of course. So I talk to someone on the phone and they said there is some “Plan 3″ policy (or something like that) that’d cost me $313/month plus $100 (or $50, depending on the deductible) for maternity coverage. For both of us. Hmm. $413 compared to $1200. That’s a tough choice there.
Obviously, I’ll do more calling around before I make a commitment, but $1200 is crazy. $413 is quite pallitable.
While on the phone with Assurant Health (I’d already contacted BCBS as this point) and told her that BCBS quoted me $413 for the same coverage, if not a little better. She said that was possible, new business is cheaper than existing business. That’s completely contrary to every business model I’ve ever heard about it. It’s supposedly much cheaper to keep an existing customer than get a new one. Weird.
Anyways, Assurant Health sucks. If it wasn’t apparent to me before, it is now.
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Dave Hutchison on November 6th, 2007
Actually you often can get better rates switching health insurance polices every few years to a new carrier.
That is because they can only increase your premium so much based on your original health conditions. As the policy ages your Group is aging and getting more health problems. The company is locked into providing your coverage (unless it drops an entire state or class).
If you apply to a new company and are still in great health, you should be able to get less expensive coverage.
Health like all insurance should be for catastrophic events not for normal medical costs in my view. I have always had $5000 deductible policies and never spend more than $200/yr on costs since luckily I have been very health (at age 60). But I use insurance only as “insurance” not a pre paid health plan.
Brian on December 29th, 2007
Actually Assurant Health was sold in 2005 so the company is much better now. The rate you got from Blue Cross was the QUOTED rate. Did you make sure to double check whether or not that rate included maternity?
The reason I ask is that most insurance companies are about the same. I’ve been an agent for more than a decade and they look at what each other is doing and make their rates and plans based on what others are doing.
I did not know that you could get an Assurant plan with maternity coverage. I know that in my state, your BCBS coverage would cost close to 1000/mo if you added maternity coverage and were completely healthy otherwise.
I’m not saying you don’t have a point. I’m just saying that things are different. Quoted rates are rarely final rates, though it is a good idea to shop around. Good luck.
lorien1973 on December 30th, 2007
Yep. The price includes maternity. I’ve gotten written confirmation of that. 419 was the total.
I know it was sold or changed its name to Time Insurance; I just know it was Assurant Health.
chris on January 3rd, 2008
Assurant Health does suck and lie! I bought a policy after seeing the TV ad if not satisfied in 30 days money back. Brian sold it to me. I cancelled in 6 days as my doctors would not accept the insurance. Funny the company did not get the e-mail or letter for 2 weeks after I sent. Thank God AOL dates the e-mails. They are stating i used it after it as cancelled. I contacted the Attorney General and State Insurance Com. to report the fraud from advertising as I am disabled and a senior citizen. I will sue for my refund as I think they do what they want to do to keep the money.
Assurant on February 23rd, 2008
All the insurance companies must follow federal and state regulations. There are extremely hefty fines if insurance company breaks any of the rules set by the government. Recently Blue Shield of California was forced to pay $12.6 million for breaking some rules. When it comes to getting money back from the insurance company it is a law for them to give you %100 refund in first 10 days of you receiving your policy. If you have used that plan in that case they will only refund their difference of what you have paid and what they have paid.
Chris Chanowski on March 15th, 2008
Always buy health insurance from a independent broker who you can build a relationship with and not a direct sale with any insurance company. Have the broker look at your health needs on a year to year basis. It is always advisable since the marketplace changes every 6 months. The broker as a consultant/advisor should recommend changes if necessary and do what is best for the client. If you buy directly from a company, the company is looking out for its best interest, not the customer’s.
debbie on April 5th, 2008
assurant insurance just turned down our daughter surgery for a simple masctomy and this was on an appeal.guess now we will have to go to our congressman again that is how we got her appeal and threw state farm is quite upset at assurant.
Mark on April 17th, 2008
Assurant’s business model is to troll for the powerless, take their money, and then dump them when any claims start coming in. See this: http://www.usatoday.com/money/perfi/insurance/2007-01-28-insurance-1a-usat_x.htm
and this: http://www.cbsnews.com/stories/2007/05/24/cbsnews_investigates/main2850054.shtml
joanne murphy on April 17th, 2008
Your experience and those who responded point to the deeper issue of how broken our health care/ protection industry and services are today. Think about that when you decide which candidates to support in this and other elections, whether state or national. We have to start somewhere. (P.S. I think you meant palatable.) I hope you have a nice family and don’t raise your kids to be desensitized to common words like “suck” and well-known others. Yes, I know, I know…….Raise the bar, folks.
david the insurance man on August 5th, 2008
Few people realize that they can hire a claims adjuster and bring the insurance companies to their knees. These people are called Public Adjusters, and what they are are people that know all of the ins and outs of the insurance business. They know just how far they can go in settling a claim. They take about 7-9% of the claim. Attorneys will charge you 30% of the claim. A public adjuster will build a case and then use the arbitration clause in the contract, and insurance regulation, to get you your fair claim resolved. Look in the yellow pages. Insurance claim adjusters hate seeing another adjuster on the other side!
Sharon on August 6th, 2008
In Okla. Public Adjusters only work on property & casualty claims, not health claims. There is no licensing for a health adjuster and if an agent argues too much on a health claim, the company will pull your appointment! We need “Assigned Risk” health insurance just as we have in property & casualty & we need a commissioner that will stop allowing the outrageous increases on individual health policies.
Josh on August 13th, 2008
STAY AWAY FROM ASSURANT. THEY WILL RIP YOU OFF. NO INSURANCE IS BETTER THAN ASSURANT.
Adam on September 9th, 2008
What concerns me in all of the diatribe that has preceeded here is the complete lack of responsibility anyone seems to be assuming.
First in a country where the commerce and society are geared to self serving aggrandizement, it is folly to believe that any policy maker will be able to promulgate a universal plan where neighbors will agree to pool resources to pay for another neighbors health dilemmas. Such a plan is doomed to failure.
Second, all of these plans — even the reissues where one adds provisions, riders and additional benefits post-enrollment — come with certificates that clearly detail the limitations and exclusions. In my experience, insureds never, ever read them, relying instead on the assurances (no pun intended) of the person who sold them the plan. If the plan is being misrepresented on the front end, how can one expect that it will be sufficient on the back end? If we have learned nothing from the age of technology, it’s garbage in and garbage out.
Moreover, who sends an email to cancel insurance without making a phone call to confirm the written instructions? As a health insurance advocate here in California, I work for my clients. However, even I would find such behavior reprehensible. It is imperative that all business — true, grown up business — be done in writing and confirmed by telephone.
Maternity coverage is the most expensive in the arena of health insurance because maternity and pregnancies are fraught with the most peril available in the health care industry. I personally known several OB/GYN practitioners who no longer accept pregnant patients because the cost of malpractice coverage exceeds their means.
My recommendation is to always read your policy. Read everything that comes from the insurance company and compare it to what you were promised and told. To do otherwise is irresponsible.
marcharino on September 26th, 2008
People don’t realize that as an uninsured individual seeking health care on a cash basis that there are mechanisms in place for negotiation of one’s health care. Paying for your care with cash can have its up side. Now I understand that having a baby delivered can be outrageously expensive, but I can’t help but wonder how much it would cost to just have the baby with a mid-wife, and pay an Ob-Gyn physician to make a house call! I also must wonder how far almost $12,000 would take one in a pregnancy anyway on a per diem basis with a birthing center, not to mention the additional $800 per month during the gestation period (another $7,200 or so)… how much farther would $20,000 that take an expectant mother in the birthing-delivery process?
Dan on December 1st, 2008
As an agent for Assurant, I just ran 2 quotes, a $1000 ded. 80/20 plan with maternity (by the way, Assurant’s maternity is one of the best in the industry with a 12 month wait on delivery)with a $2500 deductible (you pay the maternity deductible and then Assurant pays 100% of all maternity related expenses)and the cost was $531. If you buy the $5000 ded 100% plan that comes with a 24 month rate guarantee, your cost would be $379 including maternity. As a few others already suggested, self insure yourself for the minor cost, and insure yourself for the unforeseen. That’s what insurance is for. This company is a A rated health insurance provider that’s been around for over 100 years. They haven’t obtained this rating and maintained their longevity by cheating people.