Health Insurance Blog

Given the increased attention to rising health insurance rates and the growing number of uninsured in this country, we periodically scour the web for low-cost health insurance plans from quality health insurance companies across the country and blog about one here.

Blue Options HSA is a low cost health plan for North Carolina residents offered by Blue Cross Blue Shield of North Carolina (BCBSNC).  BlueOptions HSA is a high deductible health plan that is eligible to combine with an HSA.

According to BCBSNC, monthly premiums are as much as 50% lower than a traditional health plan.  Rates can be less than $60 per month for a 25 year old male.  Other affordable health insurance plans offered by BCBSNC include Blue Advantage.

More information about North Carolina health insurance.

According to a recent report released by Families USA, North Carolina health insurance rates have increased sharply.  It now costs over $13,000 to insure the average North Carolina family via an employer sponsored health insurance plan.   Of that amount, the family will end up paying $4,000-$5,000 out of pocket.

The cost of Group health insurance coverage in North Carolina has increased 97% since 2000.

BCBSNC the largest health insurance company in North Carolina took in $2.2 Billion in group health insurance premiums in 2008 vs. $841 Million in 2001 (a 161% increase).  Blue Cross Blue Shield of North Carolina Individual health insurance plans (such as Blue Advantage) brought in $971 Million in premiums in 2008 vs. $311 Million in 2001 (212% growth).

It should be noted that BCBSNC’s growth in premiums collected cannot be attributed solely to the increase in prices as they have grown their membership base significantly over the period of time examined in the report.

Blue Cross Blue Shield of North Carolina (BCBSNC), has broken rank with the health insurance industry and will air TV ads which attack Barack Obama’s proposed health care plan.

In recent times the health insurance industry, led by the AHIP, has made some consessions to the government such as agreeing to keep health insurance premiums in check and accepting all customers regardless of medical conditions.  The concessions were not completely altruisitc as they were designed to fend off the governments desire to create a government health plan which would compete with the private health plans in each market.

In three 30-second videos, sponsored by BCBSNC, the North Carolina health insurance company paints a picture of a future system in which patients wait months for appointments and can’t choose their own doctors.  Storyboards of the BCBSNC videos were obtained by the Washington Post.

The State Health Plan - North Carolina’s health plan for state employees lost $137.6 Million in the fiscal year ending in June 2008.  The plan covers roughly 667,000 North Carolinians.  The primary driver of the financial implosion was the introduction of a more generous PPO health insurance option that prompted 76,000 existing enrollees to switch over to this plan, as well as prompting an additional 30,000 state employees to sign up for the state sponsored plan.

The members who were enrolled in the PPO plan specifically took advantage of routine eye and hearing exams and their increased utilization of services overwhelmed the discounts with network hospitals and doctors negotiated by Blue Cross Blue Shield of North Carolina (BCBSNC).

BCBSNC, The largest North Carolina health insurance company administers the PPO plan, and claims ended up costing nearly $164 million more than was projected.  In addition, administrative costs were extremely high ($66.6 Million), but they were allowed based on the contract that was signed.

The top North Carolina health insurance plans as ranked by US News and World report’s annual health plan ranking report are displayed below.  Of particular note is that a number of health insurers including the states oldest and largest health insurance company, BCBSNC, have chosen to not supply internal data that is required to provide accurate health plan rankings.  As a result, BCBSNC, as well other North Carolina health plans were not included in the 2008 rankings.

The top North Carolina health plans that particiapted in this report are

1. CIGNA Healthcare of North Carolina
2. Aetna Health of the Carolinas
3. UnitedHealthcare of North Carolina

In an effort to assist North Carolinians through tough financial times brought on by the global recession, Blue Cross Blue Shield of North Carolina (BCBSNC) has waived the co-payments on generic prescription drugs for the first half of 2009 (through June ‘09).  The waiver supplements a similar program that BCBSNC is running in 2008 called “Medication Dedication” which has saved members $13Million in out of pocket costs thus far.

About 1 Million BCBSNC members are eligible for the 2009 Program, including:

• Blue Advantage customers
• Medicare Supplement customers (whose plans include prescription drug coverage)
• Many members who are covered by BCBSNC through their employer groups and
• Members of self-funded employer groups if their group has pharmacy benefits through BCBSNC and have chosen to participate in the program.

BCBSNC first launched programs to waive co-pays on generic prescription drugs in 2004, and have seen a marked increase in generic prescription utilization as a result.  The shift to generics from brand name prescriptions is important to insurance companies because it helps keep health care costs down as generics cost a fraction of what brand name drugs cost, and contain the same active ingrediants.  The cost savings ultimately get passed back to the customers in the form of lower premiums based on the utilization costs.

US News and World Report recently released their health plan rankings for 2008, based on NCQA Data collection and analysis.  The 4th annual rankings provided via the collaboration between US News and the NCQA, aims to help health insurance shoppers select quality health plans.  Costs will likely always be one of the most if not the most important factor to shoppers when considering a health plan, but this report seeks to make factors such as preventing and treating illness, as well as customer service more transparent to health insurance shoppers.

The top 10 Commercial Plans according to their analysis were:

1. Harvard Pilgrim Health care
2. Tufts Associated HMO
3. Harvard Pilgrim Health care of New England
4. Grand Valley Health Plan
5. Geisinger Health Plan
6. Health New England
7. Anthem Blue Cross Blue Shield of Connecticut
8. Group Health Cooperative of South Central Wisconsin
9. Blue Cross Blue Shield of Massachusetts
10. CIGNA Healthcare of New Hampshire

126 health plans refused to furnish performance related data and were unable to be included in the analysis, the three largest of such plans were Blue Cross Blue Shield of Texas, Blue Cross Blue Shield of North Carolina, and Wellpath Select.

Check Back later for regional rankings that will be posted later in the week, as the US News national rankings seem to favor the New England region as a result of more stringent mandated benefits in that region of the country which skew results.

A brief prepared by Mark Farrah, ranks health insurance companies across the nation based on their enrollment of individuals & families in non-group health plans, i.e. individual health insurance.

In the private health insurance marketplace there are an estimated 17 million individuals enrolled in non-group health insurance coverage purchased directly from insurance companies, although only just over 11million in membership was captured in this analysis which relied on NAIC and CA Dept of Managed Care Data.

Major medical health insurance plans make up the vast majority of non-group health plans, but limited benefit plans make up a material portion and are growing in popularity as health insurance premiums continue to outpace wage increases.

The brief found that 229 health plans were offering major medical health coverage to individuals & families.

The rankings were as follows:

1. Wellpoint/Anthem (BCBS in 11 states)      21% market share
2. HCSC (BCBS in 4 states)                              7%
3. BCBSNC                                                      4%
4. BCBSFL                                                       4%
5. Regence (BCBS in 4 states)                         4%
6. United HealthCare                                     3%
7. Aetna                                                         3%
8. Humana                                                     3%
9. BCBSMN                                                     2%
10. Assurant                                                    2%
11. Other (219 companies)                            46%

In the limited Benefit Plan marketplace, United American maintains a dominant position with 70% market share.

The most surprising finding in the major-medical health insurance rankings is that Blue Cross Blue Shield of North Carolina as the 3rd highest membership across the country, covering over 350,000 individuals with their Blue Advantage offering for individuals despite covering a service area that is limited to the state of North Carolina.

Gary Bolt, and Bruce Allen deserve much praise for their work managing the individual direct sales unit at BCBSNC.

On August 7, Blue Cross Blue Shield of North Carolina celebrated 75 years of providing health insurance to North Carolina residents.

BCBSNC was founded as Hospital Care Association (a group health insurance plan) in Durham on Aug. 7, 1933, and merged with Hospital Saving Association based out of Chapel Hill in 1968 to form what it known today as Blue Cross Blue Shield of North Carolina.

In recognition of this milestone, Governor Easley proclaimed August 7 as BCBSNC day in North Carolina.