RichDayHealthPlans Blog

For Immediate Release August 19, 2010

BCBSNC Requests Smaller 2011 Rate Increases for Individual Customers

70 percent of Blue Advantage/Blue Options HSA members would see rate changes less than 10 percent; including almost 28,000 customers who would see rate decreases

Chapel Hill, NC

– Today Blue Cross and Blue Shield of North Carolina (BCBSNC) filed a rate request with the North Carolina Department of Insurance for a base rate increase of 6.97 percent for Blue Advantage and 2.06 percent for Blue Options HSA. These requested base rate increases are the lowest since 2007. Blue Advantage and Blue Options HSA currently serve more than 300,000 customers under the age of 65.Seventy percent of Blue Advantage/Blue Options HSA members would see rate changes less than 10 percent, including almost 28,000 customers who would see rate decreases.

“Most of our Blue Advantage and Blue Options HSA customers will see smaller rate increases for 2011,” said BCBSNC President and CEO Brad Wilson. “However, the only way to make premiums affordable over the long term is to get soaring medical costs under control.”

Rates requested for individual coverage for 2011 reflect medical trend as well as changes made to comply with the new health care reform law.

Factors in calculating annual premiums

“The primary factor impacting rates is the expected cost and use of medical services,” said CFO Gerald Petkau. “Last year 87 cents of each premium dollar we received went to pay medical costs for our customers. Other factors in our overall rate calculation include administrative costs, taxes and a contribution to the reserves we are required by law to maintain.”

After BCBSNC completes its rate calculation, the company submits its rate request to the North Carolina Department of Insurance (DOI) for independent review. Any premium changes to Blue Advantage and Blue Options HSA products must be approved by the DOI.

Following DOI approval, Blue Advantage and Blue Options HSA customers will receive a letter from BCBSNC in October telling them what their specific rate increases will be for 2011. Customers may choose to make changes to their deductible, co-pay or co-insurance to reduce their premium. Customers may also choose to enroll in a new lower-premium product with streamlined benefits that BCBSNC will introduce in November.

Impact of Health Care Reform on Rates

Some provisions in the new law have an impact on 2011 Blue Advantage and Blue Options HSA rates. These changes provide more benefits, but come at a greater cost. These changes include unlimited lifetime maximums, enhanced preventive care coverage, and no dollar limits for certain types of care such as mental health and prescription drugs.

An additional factor affecting rate increases for some members starting in 2011 is a provision in the health care reform law that requires insurers to rate dependents under age 26 as a single age group. Today, BCBSNC uses six distinct age groups to set premiums for these customers. This change means some customers under age 26 will see a smaller increase – or even a decrease – in their premium for 2011, while others will see a larger increase.

BCBSNC currently prices its individual products taking into account the effects of underwriting, which reflects an individual’s health condition. The rating structure for policies sold or modified to lower benefits after March 23, 2010 will change in 2014, when health care reform eliminates underwriting. This effectively shortens the expected length of those policies, and as a result, the requested premium increases are lower.

Given what is known today about the health care reform law, premiums will be generally higher for individual policies after 2014. Rates generally will be lower for less healthy consumers and higher for healthier consumers than they would have been without reform. Federal subsidies will be available for eligible consumers.

About BCBSNC:

Blue Cross and Blue Shield of North Carolina is a leader in delivering innovative health care products, services and information to more than 3.7 million members, including approximately 900,000 served on behalf of other Blue Plans. For 77 years, the company has served its customers by offering health insurance at a competitive price and has served the people of North Carolina through support of community organizations, programs and events that promote good health. Blue Cross and Blue Shield of North Carolina is an independent licensee of the Blue Cross and Blue Shield Association. Access BCBSNC online at www.bcbsnc.com.

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Life insurance underwriting is about danger assessment simply as life insurance coverage is about threat management. The premise for underwriting doesn’t come up from the mere existence of risk, however from the reality that all risks usually are not equivalent. For the reason that premium degree is related to the risk level, life insurance coverage underwriting is necessary to assessment each danger in order that the insurer could apply a commensurate premium.

Underwriting in a general sense is concerned with the insurer’s risk selection. Insurers make use of life underwriters to review life insurance coverage applications. However, insurance coverage agents or gross sales representatives often do the preliminary underwriting- hence, they are referred to a ‘field underwriters’. The insurer trains ‘field underwriters’ to ensure that solely appropriate dangers are referred to the insurer’s underwriting division for consideration.

Life insurance coverage underwriting is predicated on the hazards presented by an applicant. Bodily hazards, moral hazards and occupational hazards are just some of the danger areas examined. Bodily hazard refers to situations of the body that enhance likelihood of the insured’s death. Ethical hazard refers to the chance that the applicant may be looking for to realize unlawfully, speculate on the lifetime of one other or in any other case act dishonestly in making use of for the policy. Primarily based on the hazards present, underwriting could be subdivided into groups.

Medical underwriting

This type of underwriting can take place with or with out medical examinations. Typically the underwriter requires a mix of warranties and representations from the applicant and medical tests. This relies of the applicant’s age and coverage sought typically. Info similar to family history and personal medical history shall be sought in this phase.

Occupation/Lifestyle underwriting

The underwriter additionally requires fundamental details about actions undertaken for employment or enjoyment. Dangerous jobs include the armed services, pilots and construction. Actions which can be thought-about hazards embody racing and skydiving for instance. Way of life concerns may additionally include sexual orientation and drug use. Non-disclosure of such activities could constitute misrepresentation that can lead to an insurance contract being modified or cancelled.

Financial underwriting

Monetary underwriting involves the coverage owner and insured (if the two are different persons). It is used to detect ethical hazard and in addition to ensure that individuals do not speculate on their own lives by taking out much more insurance than they’re worth. A person, who takes out a big coverage on the life on his or her spouse, while having a small amount of life insurance coverage themselves, will raise eyebrows. Monetary underwriting broadly states that nobody ought to search particular person life cowl greater than 30 instances their earnings without justifying it.

Major underwriting components

Life insurance coverage underwriters must use the knowledge to assess the risk of loss (dying) of a selected applicant. This is not accomplished by a whim, however by inserting the applicant in a threat group that’s defined by a specified rating system. Information about age, top, weight, occupation, hobbies, medical condition, funds and medical historical past (private and household) is used to classify an applicant based on risk. The questions on a life insurance coverage software and non-medical type are designed to uncover warranties and representations crucial for the underwriting process.

Underwriting action

As soon as a life insurance coverage application is reviewed, it’s then assessed by way of the danger posed by the applicant. The proposed insured is assessed into one in every of four threat groups:

a) Standard risk- That is the ‘regular’ rating.

b) Substandard danger- Might be accepted but at a higher premium rate.

c) Declined threat- This can be a risk that it too excessive for the insurer to just accept

d) Most well-liked risk- One that’s granted a premium decrease than the usual rate.

The result of life insurance underwriting is that an application is declined, deferred or accepted. With a deferral, the underwriter temporarily refuses to accept the coverage until a selected condition is addressed. The applicant is free to reapply as soon as the condition of concern is addressed. Once a policy is accepted, it can be accepted at a higher rate, normal price or preferred rate. Read more other FREE information about buy life insurance, whole of life insurance and 20 year term life insurance

One of the unfortunate effects of the economic difficulties experienced across the world has been the massive loss of jobs.More people than ever have found themselves transitioning between jobs. But just because your employment status changes does not mean your need for health care does. While you may have opted for COBRA coverage, you might have been much better off buying a short term health insurance policy.

Many people think COBRA is the only health insurance for unemployed citizens. However, other choices do exist, and quite often they provide a more cost-effective alternative.

For instance, temporary health insurance lets you keep receiving the same high standard of medical care you recieved while you were employed, and at an affordable price. After all, if you are in-between jobs then you certainly do not have additional funds to pay for the expensive fees associated with health care.

The common mentions of COBRA coverage by your employer may make it seem easier to obtain, but there are actually many drawbacks to using it.Chief among those is cost, because COBRA coverage includes high premiums and administrative fees. So it makes sense to find COBRA insurance alternatives.

So while your actual doctor’s visit fees may be minimized by COBRA, the administrative fees you pay will cancel out your savings. But alternatives to COBRA like short term insurance do not come with those excessive fees.

Short term medical insurance plans can be bought online, making it a very easy purchase. You can quickly compare details from many different types of plans to find the right one for you, and then order your plan and print your id card from your home computer.

Afraid that by signing up for short term health insurance, you will be locked into an agreement that is longer than what you need? Do not worry, because you only need to buy this coverage for the specific amount of time you need it.So you will not be paying for coverage you do not use.

Whether you have recently been terminated, laid off, or have quit your job for another one which requires a probationary period before you’re accepted into their plan, you have a need for temporary insurance. It provides many advantages over COBRA coverage, and it can be bought easily online, and only for the amount of time you need it for.

The most common type of life insurance coverage is term. It’s a good possibility for individuals who solely need non permanent coverage, especially because it’s much cheaper than complete life insurance. But it isn’t excellent, and lots of holders of term policies are unhappy with the fact that, in the event that they survive the complete time period, they’ll don’t have anything to show for it. The death benefit only pays out if the policyholder dies. In response to those complaints, insurance firms have invented a new type of insurance coverage: return of premium life insurance. The basic idea and attraction of this insurance coverage is that, when you survive through the term of your coverage, then your premiums are refunded to you in full.

Return of premium life insurance coverage is much like time period insurance in lots of ways. In both varieties of policies, the policies are good for a specific term. Each varieties of insurance policies require you to pay a fixed premium on the policy, though the premiums on return of life policies are typically higher. Should you die at any time throughout the time period, your beneficiaries can accumulate on your demise profit, and the demise benefit is tax-free. However, when you survive the term, that’s the place the similarities end. With a term life policy, you are left with nothing. But with a return of premium policy, each cent you paid into the premium is returned to you.

While it is understandable that this option may be very tempting for individuals who were considering term life insurance coverage, return of premium life insurance just isn’t perfect, either. One of the greater flaws with this sort of account is that, if you must cancel the account for any motive, you then forfeit any claim you had to your premiums. And for the reason that premiums are higher than term life premiums, some argue that you simply might as effectively just get a whole life account.

Nevertheless, it’s at all times good to have options. There’s a good probability that you’ll outlive your insurance term. If that’s the case, then most people would like to get their premiums back. Others desire time period life because it’s merely cheaper and, if one thing occurs to you, you finally get the identical protection, but you did not spend as a lot on it in the first place. But as with all insurance coverage selections, it’s best to contemplate your individual circumstances and focus on your options with your partner earlier than making a ultimate decision. Checkout more other helpful info about universal life insurance definition, elderly life insurance and whole life vs term life

Our future is full of possibilities, good and unhealthy ones. It is at all times advisable to be ready for the worst case scenario and be certain that you don’t end up regretting selections that you took within the past. One such thing that you simply would possibly need to give due consideration for would probably should be annuities. Setting up the correct is important given that you’ll find yourself wanting to fall back on these deposits at a later stage in case you end up losing your job prematurely or even decide to take voluntary retirement.

Significance of an annuity

Without an annuity, it is quite possible that you just may need to dig up money in case you wish to cover some unexpected expense within the future. This could be something as simple as a household trip if you lastly get the time for it or could even be a vital surgery that your insurance won’t have the ability to pay for in full. You should keep in mind that these sorts of bills virtually always occur regardless of how careful you would possibly be. The number of risks that you have to face whenever you age enhance considerably, which is why it’s essential to be ready for them.

Learning about annuities

Now that you already know why you need annuities, the following problem would in all probability be setting one up. This may not be as exhausting as you might need imagined it to be. You’ll be able to search for on the web about how one can set one up. If you’re not comfy utilizing the internet for monetary transactions, you can also call up a representative from an appropriate monetary institution and have them work out the annuities amount for you.

How a lot do you need for one?

This is a good question, but the answer to it varies from particular person to individual. Take into consideration how a lot money you may need to steer a cushty life. Accordingly, you need to set aside a fund that is able to paying you back this amount on an everyday basis. It might sound a bit advanced right now, however in case you put your mind to it, you may be assured of getting a very good estimate proper away. The one factor that you simply might need to bear in mind is that annuities are versatile and the quantity you wish to set aside is totally dependent on you.

With all of this info at hand, you have to be enthusiastic about organising your annuities proper away. This isn’t an issue and you need to be able to take action when you simply comply with directions and know more about find out how to set up the annuity. At all times get all your doubts clarified and if you are not sure about how you prefer to issues sooner or later, discuss the same with a financial advisor. Keep in mind that this is your money that you’re putting away and hence, if there’s something you aren’t comfortable with, it is best to handle it right away earlier than it becomes an issue later on. Read more other helpful info about whole life insurance online quote, universal life insurance quotes and universal life insurance rates