Affordable health insurance in California? Not for HIPPA eligible!
Posted by Rachel Romero on Wed, Sep 01, 2010 @ 09:20 AM
A recent article in the Los Angeles Times does not bode well for people that lost their job recently, have exhausted COBRA coverage and are now on insurance through the rules of HIPPA (Health Insurance Portability Act). This law protect people that would otherwise be excluded from individual policies if they previously where on group coverage or COBRA (and only have a gap of coverage of 63 days or less).
The article starts out by saying: "State regulators have quietly given insurers permission to raise maximum premiums for most of the 20,000 who depend on the coverage of last resort. Some are paying an extra $7,500 this year." Ouch. When you've lost your job - and are starting over as a self-employed person or with a smaller company that does not offer group coverage - paying an extra $7,500 per year for health benefits hurts!
The increase was prompted by an outside actuary firm that sought to find a formula for calculating premiums - State officials said the actuary developed a uniform calculation -- based on a larger number of enrollees -- that led to reliable rates with gradual increases.
The downside was that the formula also pushed up the maximum price tag for the majority of consumers, particularly for those ages 50 to 64, the largest group in the high-risk pool.
It is always a good idea to try and shop your coverage - but if you on HIPPA eligible coverage you may have no choices. Raising your deductible and contributing to an HSA plan can be an option to keep costs down. Read more about California HSA plans.
