Health insurance dilemma

Filed in Thoughts on September 18, 2009



While Obama's health care may not be optimal, my dealings with health insurance companies have pretty much led me to agree with him in principle that something has to be done about health care.  Here is my story.

For the past ten years, my family has been with Blue Cross Blue Shield of Georgia.  When we started, I think we had a $1000 deductible and paid a few hundred dollars a month.  Over that period, we have seen double digit increases in premiums every year (sometimes more than once a year).  I have kept the premiums in check by raising the deductible.

Today, my insurance is $500/month for a $5,000 deductible (per family member).  Recently, I got an annual increase letter to $600/month (a 20% increase).  I find that ridiculous and called to find out what could be done.

The person I talked to told me that she could do a "rollback" of my premium to what I paid when I first went to the $5000 deductible.  That means I would pay just $400/month, but she said it had to go to underwriting.

Last week, I got a letter from underwriting denying the rollback because my wife Marla had been to the doctor with a sprained neck during the last three months.  Yes, you read that right.

Of course, I can get my deductible down to $400/month another way; I just have to raise my deductible to $10,000.

I am not opposed to high deductibles.  My feeling is that insurance is supposed to cover catastrophes rather than doctor visits.  But I am opposed to getting ripped off.  If BCBS could make money on me at $400/month, where do they get off charging $600 and raising rates 20% a year?

And who do they think they are denying that rollback because of a neck sprain?

Here is where I agree with Obama:

1) The annual inflation in medical insurance is unsustainable.  At its current pace, by the time I am 50, I will be paying $64,000 for premiums alone.  There is no way people can handle this.  Because employers have traditionally picked up the cost of health insurance, most people have their head in the sand.  As mad as people are now, they are going to be a lot madder in 10 years when no employer can afford to cover health insurance any more.

2) Lack of competition is allowing health insurance companies to rip people off.  If I lived across the line in Tennessee, I would pay far less for insurance.  BCBS dominates individual coverage in Georgia and they are taking advantage of it.

As far as I am concerned, Obama can do whatever he wants to BCBS of Georgia and I will lose no sleep over it.  Bring on a public option because that is the only way people will be able to get insurance in 10 years unless something changes.

Now, I happen not to agree with Obama on many aspects of what he wants to do.  But, I am furious with Republicans for pretending like we do not need to do something.  This ridiculous inflation in medical costs have been going on for the past fifteen years or so, and it has largely been ignored.  And no, I do not buy into Republican rhetoric that the marketplace itself and capitalism will solve the problem.

So to those who are jumping down Obama's throat, my question is this: what is your plan to fix things?  Because it is clear that things do have to be fixed.


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