Health insurance plan change
Back in 2007, we switch from a traditional health insurance plan from Blue Shield to a high deductible (HDHP) HSA-compatible plan from Blue Cross (as detailed in this previous entry). From all our initial research, it appeared it would be the better combination all around whether you rarely went to the doctor or had chronic problems.
Well both we and our health insurance broker missed the fine print. In the drug coverage section, plans usually have 2 categories. Tier 1 drugs are the core drugs and usually covered fully or with a nominal fee. Tier 2 drugs are considered "optional" and have different rates. Unfortunately, one of our employees takes one of these "optional" medicines and Blue Cross's rates for them are exorbitant. Even worse, they do not count against the annual deductible. Hence this employee continually had to pay out of pocket every month to the tune of hundreds of dollars.
So when renewal time came around, our broker forwarded many more quotes to us for HSA plans. This time, not only did we look at premiums, deductibles, out of pocket maximums, in/out network rates and copay percentages but also the tier 1+2 drug lists. We ended up switching to HealthNet for roughly the same premiums and a $3000 single, $6000 family deductible and out-of-pocket maximum. Tier 2 drugs were more expensive than tier 1 but at least they were a fixed cost and that would reduce the cost of medicines for chronic conditions down to less than $100 per month.
The punch line is 6 months after our switch, Anthem Blue Cross of California announced they were going to increase premiums up to 39%.
Well both we and our health insurance broker missed the fine print. In the drug coverage section, plans usually have 2 categories. Tier 1 drugs are the core drugs and usually covered fully or with a nominal fee. Tier 2 drugs are considered "optional" and have different rates. Unfortunately, one of our employees takes one of these "optional" medicines and Blue Cross's rates for them are exorbitant. Even worse, they do not count against the annual deductible. Hence this employee continually had to pay out of pocket every month to the tune of hundreds of dollars.
So when renewal time came around, our broker forwarded many more quotes to us for HSA plans. This time, not only did we look at premiums, deductibles, out of pocket maximums, in/out network rates and copay percentages but also the tier 1+2 drug lists. We ended up switching to HealthNet for roughly the same premiums and a $3000 single, $6000 family deductible and out-of-pocket maximum. Tier 2 drugs were more expensive than tier 1 but at least they were a fixed cost and that would reduce the cost of medicines for chronic conditions down to less than $100 per month.
The punch line is 6 months after our switch, Anthem Blue Cross of California announced they were going to increase premiums up to 39%.
(Filed in health insurance)
Hope this change will benefit the people and the society.....