Medical Insurance costs going down?

[Nyteshade]

I received my work's health insurance quotes this year and noticed that the average cost of PPO plans are substantially lower this year. I work at a very small business that employs a total of 6 people. We switched to an HSA program 2 years ago because our previous PPO program was going to rise up from $7500 to $8400 a month. The HSA insurance was cheap enough that we were able to give everybody a $1/hr raise to help cover the extra deductible while the company still came out ahead.

Last year, we stayed with the HSA program because PPO insurance plans were averaging from $8-$10,000 for us. This year, almost all of them are being quoted as $4500-$6,000 while our HSA program is rising up another $600. Did something happen that is making traditional health insurance plans become the better alternative again?

[PETA]

fear?

[cyberina]

Yeah..

I got surprised at work last week with a notice that I now qualify for insurance..... A great surprise considering that I work part time, and had always been told that they only offered benefits for full time employees.

So... Now.. For a whopping cost of $32 a month, I am now rejoining the ranks of the insured for the first time since November of 2001.

(ironically enough, I lost my insurance 2 weeks after Bush went into office, and now have it back 6 months before he's gone).

[Adam D]

HSA plans are incredibly cheaper than PPOs because they have a higher overall deductible, and most people do not reach over the (typically $1000) deductible, and if they do, not by much. With a PPO your employer, via your insurance carrier, pays everytime you go to the doctor for anything.

I'm not bashing HSA programs--it's what I have--just explaining the difference there.

[PETA]

Originally Posted by Adam D

HSA plans are incredibly cheaper than PPOs because they have a higher overall deductible, and most people do not reach over the (typically $1000) deductible, and if they do, not by much. With a PPO your employer, via your insurance carrier, pays everytime you go to the doctor for anything.

I'm not bashing HSA programs--it's what I have--just explaining the difference there.

Most young single people w/no kids..... people for whom insurance is generally a rip off anyway

my family, we burn through several thousand dollars in flex spending every year (which includes the deductibles but we'd have no problem meeting a 1k dedeuctible... iirc we do have a $1k max out of pocket per subscriber and we've met those from time to time)

[Nyteshade]

Originally Posted by Adam D

HSA plans are incredibly cheaper than PPOs because they have a higher overall deductible, and most people do not reach over the (typically $1000) deductible, and if they do, not by much. With a PPO your employer, via your insurance carrier, pays everytime you go to the doctor for anything.

I'm not bashing HSA programs--it's what I have--just explaining the difference there.

Except this year, the PPO program is coming out to being about $500 cheaper than our HSA whereas last year, it was about $2k more expensive.

[Tyler J]

My PPO sucks... stupid contract job. I hope I get a FTE soon.

[Adam D]

Originally Posted by Nyteshade

Except this year, the PPO program is coming out to being about $500 cheaper than our HSA whereas last year, it was about $2k more expensive.

It's hard to say why without seeing both policies.

[Adam D]

Originally Posted by xian

Most young single people w/no kids..... people for whom insurance is generally a rip off anyway

my family, we burn through several thousand dollars in flex spending every year (which includes the deductibles but we'd have no problem meeting a 1k dedeuctible... iirc we do have a $1k max out of pocket per subscriber and we've met those from time to time)

That's what happens when you get old.

[Damnsammit]

Originally Posted by cyberina

So... Now.. For a whopping cost of $32 a month, I am now rejoining the ranks of the insured for the first time since November of 2001.

(ironically enough, I lost my insurance 2 weeks after Bush went into office, and now have it back 6 months before he's gone).

Presidents don't go into office until October/November now?

[Nyteshade]

Originally Posted by Adam D

It's hard to say why without seeing both policies.

Unicare HSA (total monthly premium for company going from $5400 to $6000 this year)
Deductible - $1100 individual, $2200 family (must be met before insurance pays for anything)
Coinsurance - 80%
Doctor Visit Copay - 20%
Out of Pocket Maximum - $2000 ind, $4000 family

Principal Financial PPO (estimated Company premium $4,900 per month, was over $7,000 last year)
Deductible - $1000 individual, $2000 family
Coinsurance - 80%
Doctor Visit Copay - $20
Out of Pocket Max - $3000 ind, $6000 family

The two plans are roughly equivalent with the exception of the out of pocket maximums. The advantage if we go back to a PPO insurance is the fact that we wouldn't have to pay the deductible up front. Hospitals and some doctor offices have a tendency to treat you like you don't have any insurance at all when they notice you have an HSA plan.

[jaesun]

The differences in insurance have always kind of confused me but I do know I have United Health Care's Top PPO Package "Choice Plus/Freedom 500" Plan. It only costs me $25 a month. They pay for everything. Dental, Vision, etc. Yet my supplemental life insurance is through CIGNA and that’s under $20 a month.
$500 deductible for individual

My co-pays are pretty cheap too compared to most.
Rx $10 - $60
Office Visits $15
Urgent Care $30
ER $75

Now my wife has the same level of coverage with CIGNA in which she pays $70 a month with a higher deductible and her co-pays are
Office Visits $25
Urgent Care $50
ER $100

It just depends on who is covering you.

[e-brake]

Its not cheaper for us this year but the rates didnt raise as much as they have in the past. It has gone up about $50 a month per person every year that I have worked here. This year its only going up about $25/mo for the adults and $10/mo for the kids.

This is also the first year that they haven't fucked with the co-pays. When I started the pharmacy co-pays were $10 brand name, $5 generics. It slowly went up year by year and now its $35 brand name, $25 generics. This is the first year that they havent raised the co-pays on us.

[Nyteshade]

Well this is mainly about the average cost of PPO insurance regardless of the actual plan itself. I do the purchasing of the group policy for the company and determine what we use.

Last few years, PPO policy costs have been skyrocketing which is why we went to an HSA plan to begin with. I'm trying to figure out why the average price of PPO policies in general seem to have fallen by over 30% in just one year. I'm not complaining one bit. I look forward to going back to a plan that is much less of a headache to administer.