Does anyone have any information on how badly the economy will affect healthcare and/or the types of plans available?
Total Comments: 8
Posted: Mon Feb 02, 2009 11:09 am Post Subject:
The economic crisis hasn't affected the health insurance providers yet. Hopefully the industry would sail through the crisis unhurt. But if the health care cost continues to rise, the insurance cost would also increase simultaneously. And, only the time would say how it'll affect the different types of policies.
Posted: Tue Feb 03, 2009 11:42 pm Post Subject:
I think some has seen effects of the economy. When employers were offering little or no co-pay and then due to the economy raise those it really effects people. Also some may pay so much for a plan through their employer and with the economy many are paying even more per month.
Posted: Wed Feb 04, 2009 01:15 am Post Subject:
I have this feeling that even health insurance might as well not be able to cope with the economic crises. I mean, look at Lehman Brothers. It's one of the biggest banks in the US and belongs to the league of the most stable companies in this nation. Who could ever think it's gonna end up into bankruptcy? Maybe, it's because it wasn't handled well enough. Or maybe, the Christian's Bible which said a long ago that even the most stable institutions people put their trust on will not stand in the last days, is telling telling no lies. I really hope that what happened to Lehman don't happen to our health insurance companies.
Promotional link removed from the post by moderators.
Posted: Wed Feb 04, 2009 10:23 pm Post Subject: Health Insurance Industry
There will ultimately be an economic impact on our industry as employers continue to cut employees, the benefits will go with them. As our PMPM's continue to reduce, our capitation numbers will follow. Unfortunately, we're on the tail end of the whip when it comes to economic downturns so it may be months before we see a real change. Everyone should be proactive in reducing costs and streamlining there departments or massive layoffs will be in the near future. If you are not a manager, you should plan for the worst and start saving in case you are laid off. Plan on being out of work 6-9 months. Sorry for the reality check, but this is what we have to deal with now.
Posted: Wed Feb 04, 2009 10:59 pm Post Subject:
No need to apologize for the truth. I really do not believe too many industries will not be effected. Everyday alomost you see more and more companies laying off or closing down. You are right to be prepared and that is about all we can do at this point. There are insurance programs out there that will help you with health care if you are layed off but expect a long wait. The Adult Basic program in PA has a waiting list of over 2500 people with only a few of those getting on each year. I guess the best we can hope for is the economy to turn around.
Posted: Thu Feb 05, 2009 07:10 am Post Subject:
I'm finding that prospective clients are calling us and visiting our website as much as ever. A lot of people are being laid off and being offered expensive COBRA plans. Others are having their hours cut and therefore no longer qualify for their group insurance plan.
However, with the influx in new clients, comes a drop in persistency. Fewer existing clients are able to renew their policies during the recession.
Posted: Thu Feb 05, 2009 07:41 am Post Subject:
Robert, you have mentioned a very good point regarding savings. A country’s prosperity can be measured from its saving rate. The American society has long forgotten the importance of it and therefore is in the current mess.
Regards,
Juanita
Posted: Thu Feb 05, 2009 08:18 am Post Subject:
Yeah, though COBRA allows one to stay on their existing group plan for a longer period of time its not a viable option for many especially when money is the main constraint. The cost of the coverage almost doubles with the expiration of their employer’s contribution. I’ve recently added a post in my newly started blog about COBRA. I’d love to have your feedback on it.
Posted: Mon Feb 02, 2009 11:09 am Post Subject:
The economic crisis hasn't affected the health insurance providers yet. Hopefully the industry would sail through the crisis unhurt. But if the health care cost continues to rise, the insurance cost would also increase simultaneously. And, only the time would say how it'll affect the different types of policies.
Posted: Tue Feb 03, 2009 11:42 pm Post Subject:
I think some has seen effects of the economy. When employers were offering little or no co-pay and then due to the economy raise those it really effects people. Also some may pay so much for a plan through their employer and with the economy many are paying even more per month.
Posted: Wed Feb 04, 2009 01:15 am Post Subject:
I have this feeling that even health insurance might as well not be able to cope with the economic crises. I mean, look at Lehman Brothers. It's one of the biggest banks in the US and belongs to the league of the most stable companies in this nation. Who could ever think it's gonna end up into bankruptcy? Maybe, it's because it wasn't handled well enough. Or maybe, the Christian's Bible which said a long ago that even the most stable institutions people put their trust on will not stand in the last days, is telling telling no lies. I really hope that what happened to Lehman don't happen to our health insurance companies.
Promotional link removed from the post by moderators.
Posted: Wed Feb 04, 2009 10:23 pm Post Subject: Health Insurance Industry
There will ultimately be an economic impact on our industry as employers continue to cut employees, the benefits will go with them. As our PMPM's continue to reduce, our capitation numbers will follow. Unfortunately, we're on the tail end of the whip when it comes to economic downturns so it may be months before we see a real change. Everyone should be proactive in reducing costs and streamlining there departments or massive layoffs will be in the near future. If you are not a manager, you should plan for the worst and start saving in case you are laid off. Plan on being out of work 6-9 months. Sorry for the reality check, but this is what we have to deal with now.
Posted: Wed Feb 04, 2009 10:59 pm Post Subject:
No need to apologize for the truth. I really do not believe too many industries will not be effected. Everyday alomost you see more and more companies laying off or closing down. You are right to be prepared and that is about all we can do at this point. There are insurance programs out there that will help you with health care if you are layed off but expect a long wait. The Adult Basic program in PA has a waiting list of over 2500 people with only a few of those getting on each year. I guess the best we can hope for is the economy to turn around.
Posted: Thu Feb 05, 2009 07:10 am Post Subject:
I'm finding that prospective clients are calling us and visiting our website as much as ever. A lot of people are being laid off and being offered expensive COBRA plans. Others are having their hours cut and therefore no longer qualify for their group insurance plan.
However, with the influx in new clients, comes a drop in persistency. Fewer existing clients are able to renew their policies during the recession.
Posted: Thu Feb 05, 2009 07:41 am Post Subject:
Robert, you have mentioned a very good point regarding savings. A country’s prosperity can be measured from its saving rate. The American society has long forgotten the importance of it and therefore is in the current mess.
Regards,
Juanita
Posted: Thu Feb 05, 2009 08:18 am Post Subject:
Yeah, though COBRA allows one to stay on their existing group plan for a longer period of time its not a viable option for many especially when money is the main constraint. The cost of the coverage almost doubles with the expiration of their employer’s contribution. I’ve recently added a post in my newly started blog about COBRA. I’d love to have your feedback on it.
http://insuranceguy.ampminsure.org/2009/01/27/is-cobra-a-reasonable-option/
Regards,
Juanita
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