2007 Health Insurance Premium Increases

A Viscous Cycle

Insurance companies claim that premium increases are necessary in order to keep functioning. Health care consumers can reach a point, however, where the premiums are so expensive that they simply cannot afford to carry adequate health care coverage. This leads to consumers not receiving vital preventative care, which also increases the odds that the next time they seek out medical help it will be for an ailment that has already progressed to dangerous levels. Health insurance premium increases become everyone's problem when people are forced to turn to governmental assistance programs to receive medical care.

Companies with 2007 Health Insurance Premium Increases

• Humana introduced an innovative program which puts a limit on 2007 health insurance premium increases (and years following) if policyholders sign contracts and utilize Health Savings Accounts (HSA).

• Harvard Pilgrim Health Care estimates a total of up to a 13% increase in health insurance premiums for 2007.

• Fallon Community Health Plan is placing 2007 health care insurance costs increasing upwards toward 12%.

Most experts place the health insurance premiums for 2007 at approximately 11%, which is actually less than the 2006 average increase of approximately 11.5%. Although the number has decreased slightly, the fact that every year brings another premium increase is alarming to many consumers – especially consumers who are already stretching their dollars to make ends meet.

Not surprisingly, insurance companies like Cigna are reporting strong profit outlooks for 2007.

Renewal Rate Increases

Annual premium increases are not the only worry for consumers. Health insurance companies will sometimes send shocking news along with an insurance renewal notification: a huge increase in total premiums based on claims from the previous year. Insurers have been known to nearly double a person's annual premium, with the only notification of the increase being the annual renewal notice. Insured people can expect to see this continued throughout 2007 and beyond.

State Legislation

Several states carry legislation which prohibits health insurance companies from increasing premiums without the consent of the state government. Although the specifics behind health insurance legislation varies from state to state, the intention is to keep residents from falling into a situation where they simply cannot afford health insurance. An attempt is made to stop any health insurance increases which are considered to be frivolous and unnecessary. California, for example, has passed legislation which allows consumers to protest proposed health insurance premium increases prior to implementation. New York protects consumers from unreasonable renewal rate increases.

Not every state has specific legislation to protect insured people from astronomical health insurance rate premiums, and in some cases people simply decide to become uninsured because they can't afford the monthly payments.

Get Help

If insurance premium increases are making it too difficult to pay for adequate coverage then you need to become your own advocate:

• Contact your local government representatives with your concerns.
• Discuss options with your employer's HR department.
• If you pay for insurance out-of-pocket, never underestimate the power of shopping around. You may be able to save a substantial amount of money with a different insurance company.

Various government programs exist to assist people who cannot afford complete medical coverage, but who earn more than allowable for full coverage from the state. There are also some doctors who will perform procedures on a sliding scale, meaning they charge you an amount based on your income.

If you find that you are paying for medical expenses out of pocket, consider a Health Savings Account or speak to your doctor about a discount; some doctors will charge less when patients pay cash since there is no insurance involved.