Health Insurance Blog

For many American families, COBRA coverage is still too expensive even with the current COBRA subsidy which is temporarily in place.  The COBRA subsidy program pays 65% of the monthly premiums for up to 15 months, but still can require a substantial monthly expense, as the average family of four still pays on average $389 per month even with the subsidy.

A recent report by eHealthinsurance.com found that in twenty states, families could save $600 per year ($50/mo) by purchasing a family health insurance plan as oppose to opting for the COBRA coverage.  Even with the subsidy!

The twenty states that were found to offer the affordable health insurance identified in the report include:  Alabama, Arizona, Arkansas, Florida, Idaho, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Mississippi, Nebraska, New Mexico, North Carolina, Ohio, Oklahoma, South Dakota, Utah, Wisconsin, and Wyoming.

The struggling economy is causing significant issues for many states which provide health plans to assist low-income families.  Many states are being forced to pare back these health insurance programs at the worst possible time…when the number of unemployed Americans continue to rise and people need assistance the most.

The methods by which various states attempt to shave the costs of these programs range from cutting benefits, to freezing new enrollment, to raising the costs that must be picked up by the enrollee.

Among some of the state sponsored low-income health plans that are in trouble include:

• Washington Basic Health - Will fold in July unless $160 Million in additional Revenue.  About 300 Washington residents are added to waiting list each day.
• CoverTN - Tennessee’s state sponsored program.  Halted in December.
• CharterOak Health Plan - Connecticut’s program.  Must freeze enrollment this year unless lawmakers can find more money to keep it open.
• AdultBasic - Pennsylvania’s Program for low income adults.  Increasing fees.  Waiting list doubled in 2009
• General Assistance medical Care Program - Minnesota’s Program will end in March, existing members will be moved over to MinnesotaCare.

Among other viable options for low-income adults who are looking to lower their monthly health insurance costs, while insuring that they will be covered if they fall ill or are in a serious accident, would be to increase the deductible of their existing health plan.  This will keep monthly premiums down, but will require greater out of pocket costs if you should need to utilize medical care.

The General Assistance Medical Care Program (GAMC) is a state funded health insurance program for low-income adults in Minnesota, who have no dependent adults, and who do not qualify for federal funded health insurance plans.

Funding for the GAMC Program is slated to end on April 1, 2010 and all current membership will be automatically migrated to the MinnesotaCare Program.  Once this happens, monthly premiums will be paid by the counties for the next six months until the next six month renewal period begins, at which point enrollees will be required to pay their own premiums in order to maintain the health coverage.

More information about Minnesota health insurance, and other affordable health insurance options.

J.D. Powers & Associates rated the top private health plans in the heartland states (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota), and the results were as follows.

Similar to many of the other 17 regions in the JD Power Survey, a Blue Cross Blue Shield health plan took top honors.

Blue Cross Blue Shield of Nebraska was named the top health plan in this region based on overall customer experience and among the best in the nation.

Three other Blue Cross plans were rated as “better than most”  (4 stars out of 5 in overall experience):  BCBS Kansas, Wellmark BCBS Iowa, and BCBS Kansas City.

Health plans Aetna, CIGNA, UnitedHealthCare, and Coventry Healthcare were rated as being below average.

More information about health insurance in the heartland states:  Nebraska health insurance, Iowa, Kansas, Minnesota, Missouri, North Dakota, South Dakota

In a recent press release, Medica has announced that they are launching a public information program to help Minnesota residents who have lost their jobs find affordable health insurance options.   Minnesota’s unemployment rate was 6.9% and growing as of the end of 2008.  In a nutshell, the objective of the program is to let Minnesota residents know that their are health insurance options that are more viable than COBRA coverage, particularly for those out of work.

According to a recent study, which examines COBRA from an affordability perspective, receiving Minnesota health insurance coverage for a family via COBRA would absorb about 70% on average of that families unemployment benefits.

Medica’s information campaign will include newspaper advertising, billboards, radio spots, advertising on job search sites and social networking sites such as Facebook, and more.

The Fort Mill Times is reporting that two state congresspersons have proposed expanding Minnesota health insurance to more children through the state’s MinnesotaCare program. MinnesotaCare is aimed towards working poor individuals and their children. The possible costs of such a move have not been detailed.

These proposed changes would no longer require parents to pay premiums for their child’s health care if they fall below a certain poverty level. The program has also been opened up to families unable to afford private health insurance, regardless of whether their incomes are above that level. In addition, the enrollment waiting period has been eliminated, so kids can be covered immediately.

Senator Linda Berglin and Representative Paul Thissen, both Democrats, are co-sponsors of the bill. Their goal is for needy individuals to have greater access to children’s health insurance.

The top health insurance plans in Minnesota as reported by US News and World Report in their annual report are listed below.   It is interesting to note that only 5 Minnesota health plans had provided enough data to be ranked and none of the 5 plans ranked were graded as being better than 3 stars (out of possible 5) on the “consumer assessment” measure.

Minnesota Health Insurance rankings:

1. HealthPartners (33th nationally)
2. Blue Plus (81st)
3. Sanford Health Plans (107th)
4. Medica (113th)
5. PreferredOne Community Health Plan (132nd)

These rankings are based on criteria determined by US News and World Report, in conjunction with the NCQA, and don’t necessarily reflect their how each health plans offerings would satisfy you as an individual.  If you are shopping for an individual health plan, you should first compare health plans side-by-side, and select the plan that meets your needs and budget.

Blue Cross Blue Shield of Minnesota (BCBSMN) announce the launch of SureBlue a new health insurance offering for small businesses in Minnesota that removes uncertainty from health care expenses while offering a comprehensive health care solution.

SureBlue designed for employer-groups with between 51 and 249 employees builds a three year health insurance rate guarantee into the product.

To qualify for the health insurance rate guarantee, Minnesota businesses must agree to a three-year plan that includes among other things participating in a health risk assessment that identifies opportunities to improve the overall healthiness of the employee workforce.

The SureBlue rate guarantee does not keep rates unchanged for the three year period but rather fix annual rate increases at 6%, well below the roughly 9% that is foretasted for 2009.  In addition, over the next five years health insurance rates are expected to far outpace inflation.

More Information about health insurance in Minnesota.