RichDayHealthPlans Blog

Insurance companies are businesses. They have overhead expenses like salaries, mortgages, supplies, telephone, employee benefits just like other businesses do. In addition to their business expenses, they have to pay your claims!
Like any other company, they engage in business to make a profit.

When you choose a policy designed to pay your small bills, such as copays, copays for office visits, drug copays for prescription medicines; it can be a very expensive proposition. The premium the insurance company charges you must be sufficient to cover your medical bills plus their overhead expenses, plus their profit. The insurance company cannot accurately predict how many copays you will use, so they have to build in a cushion into the premium they charge you.

That is why “Dollar Trading” with an insurance company, or “paying extra premium dollars to them so that they can pay your small bills”, is an expensive, losing proposition! Insure ONLY what you must. Insure against the catastrophic expense of a dreaded illness, etc. That is what insurance is designed to protect against. You are much better able to pay for the small expenses yourself and save premium dollars while you do it. Also consider: there are no limits to the amount of copays. If you have a serious continuing illness, for example, the copays continue even after you have met your “maximum out-of-pocket” levels. Every doctors’ office copay, every prescription drug copay, every specialist copay, every copay for lab tests, X-rays, MRIs, CAT scans, PET scans and more, can add up to an unlimited amount of money.
Consider this: What would happen to your premiums for your HOMEOWNERS policy if you asked it to paint your house, cut your grass and provide water and electricity?

What about your AUTO insurance? What if you wanted it to cover replacement and rotation of your tires, provide tune-ups and regular maintenance, change your oil, etc?

That is what has happened to our HEALTH INSURANCE COSTS. We asked insurance to pay small expenses? Compare a “Dr. Office copay” to the tires and rotation, and the “drug card” to the free oil change and tune-up? As you can see, this plan design has contributed to our escalating health care costs!

Learn more about “Dollar Trading” from the agents at http://RichDayHealthPlans.com