Phoenix and Scottsdale Health Insurance with Long Term Rate Stability
Finding rate stable health insurance in the Phoenix and Scottsdale area can be a challenge if one is not educated in how to do so.
Believe it or not, the average length of time a health insurance policy is in force is only 18 months.
This is due to rate increases which may start as soon as six months from the time the policy is issued.
Most policy owners do not know why their rates start to go up year after year for no apparent reason.
Most insurance companies are not able to survive on health insurance alone with stable rates The average health insurance company is not diverse in what they do and they tend to be only into health insurance.
They may even try to offer something for everyone in the form of a generous co-pay plan.
The problem with this setup is that health insurance is a very costly product that must be managed accurately to remain profitable, and trying to duplicate what an employee of a large organization would have for benefits adds even more to the cost of the insurance.
The insured wants to get their money's worth and they go to the doctor for every little ailment and the system is over burdened.
The insurance companies that tend to be more stable are those who offer catastrophic plans or are also in the business of life insurance which is very manageable and profitable.
This situation promotes a more stable business model.
The Average Insurance Company Tends to Buy Business Most health insurance companies will also buy business by offering extremely low rates to new clients.
These rates must increase at a rapid rate starting six to twelve months from the time of issue in order to remain profitable.
Many individuals who have had their policy for several years can't figure out why they are paying much more than new clients are paying.
Once they realize what's going on, they will start the bad habit of looking for a better deal every year or two.
This works well until someone in the family is not able to get through underwriting again.
At this time the client is stuck with the policy they have which will drastically increase in cost year after year while health care costs are rising at a lesser rate.
Stagnant Blocks of Business Another method used is to keep the policy holders divided up into small blocks of business with policy forms that can be closed after a period of time.
This method allows the insurance company to micromanage each block of business and to raise rates in each of them as they see fit.
The problem here is that the block of business will tend to stagnate as the healthy people move on to find cheaper insurance while the sick are left behind and can't qualify for new insurance.
So, What is the Solution? The wise health insurance shopper will know that he or she may be stuck with their current policy at any given time, and will put some time into researching the company they are thinking about using.
Health insurance companies that are diversified, have been around a long time and have a history of not increasing rates excessively are a good choice.
Believe it or not, the average length of time a health insurance policy is in force is only 18 months.
This is due to rate increases which may start as soon as six months from the time the policy is issued.
Most policy owners do not know why their rates start to go up year after year for no apparent reason.
Most insurance companies are not able to survive on health insurance alone with stable rates The average health insurance company is not diverse in what they do and they tend to be only into health insurance.
They may even try to offer something for everyone in the form of a generous co-pay plan.
The problem with this setup is that health insurance is a very costly product that must be managed accurately to remain profitable, and trying to duplicate what an employee of a large organization would have for benefits adds even more to the cost of the insurance.
The insured wants to get their money's worth and they go to the doctor for every little ailment and the system is over burdened.
The insurance companies that tend to be more stable are those who offer catastrophic plans or are also in the business of life insurance which is very manageable and profitable.
This situation promotes a more stable business model.
The Average Insurance Company Tends to Buy Business Most health insurance companies will also buy business by offering extremely low rates to new clients.
These rates must increase at a rapid rate starting six to twelve months from the time of issue in order to remain profitable.
Many individuals who have had their policy for several years can't figure out why they are paying much more than new clients are paying.
Once they realize what's going on, they will start the bad habit of looking for a better deal every year or two.
This works well until someone in the family is not able to get through underwriting again.
At this time the client is stuck with the policy they have which will drastically increase in cost year after year while health care costs are rising at a lesser rate.
Stagnant Blocks of Business Another method used is to keep the policy holders divided up into small blocks of business with policy forms that can be closed after a period of time.
This method allows the insurance company to micromanage each block of business and to raise rates in each of them as they see fit.
The problem here is that the block of business will tend to stagnate as the healthy people move on to find cheaper insurance while the sick are left behind and can't qualify for new insurance.
So, What is the Solution? The wise health insurance shopper will know that he or she may be stuck with their current policy at any given time, and will put some time into researching the company they are thinking about using.
Health insurance companies that are diversified, have been around a long time and have a history of not increasing rates excessively are a good choice.
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