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Phoenix Health Insurance - Unusually Affordable Health Insurance May Be Problematic

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Many health insurance shoppers do not realize that by choosing the Most Affordable Health Insurance rates, they may be setting themselves up for problems down the road.
Unfortunately it is too easy to all of a sudden find oneself uninsurable with nowhere to go, and drastically increasing premiums as a result of jumping on an offer that was to good to be true.
I see it every day.
Someone resorts to the internet, or the local broker for the best price on Health insurance.
Then, all of a sudden, they or someone in their family have a tragic accident or are diagnosed with an illness that keeps them from being able to shop around again.
They are basically stuck with the policy they have, and more than likely the insurance company that so graciously offered them the low rate a year or so ago will now start to charge for what they need to keep the policy profitable and in force.
A good Quality Affordable Health Policy may start out a little higher in price, but may be more stable long term.
The problem is that many insurance companies need to be competitive, and will try to attract new members with unrealistically low rates, and will pool these members based on certain class criteria.
In general pooling is not a good situation when the pool is closed after a period of time.
Most insurance companies will close their pools or policy forms to new members in one to three years.
The pool tends to stagnate, and the members start submitting claims.
The carrier now looks at this pool as an entity that must remain profitable on it's own.
As members get older their health declines, and they need more care which causes the carrier to increase premiums for the entire pool.
This is the reason many people experience massive rate increases of 30 to 50 percent or more while medical costs are not going up at the same rate.
In fact, if the pool becomes unprofitable even with rate increases, it may be canceled altogether.
Isn't it true that I can't be singled out? Yes, we see this statement in every policy out there.
You, as an individual can't be singled out, but in reality, your class or pool can be singled out from all others.
So as rates start to sky rocket, in order for the carrier to continue to be profitable with this group, the healthy jump ship, sometimes moving into another policy form with the same insurance company.
This is when the members who are sick, injured, or on several medications run into problems, and sometimes join the ranks of the uninsured.
If they are able to work, they may be fortunate enough to get hired with a company that offers group health insurance.
Another situation to watch out for when shopping is a limited benefit plan.
These policies look normal, but when you read the pages that tell you what you are getting, you will notice that many services are only partially paid for, and you must pick up the balance.
Look for long explanations in the policy that use percentages paid for certain services.
Investing in health insurance is not like shopping for a car or electronic equipment.
It must be taken very seriously in order to be protected from these situations.
When shopping for health insurance, by all means, look for a good deal, but also look for quality in the policy, and check with the carriers to see how they handle pooling, and how long their current policy form has been open, and maybe you can find out if and when it will be closed.
Unfortunately there are probably more not so good policies out there than there are good ones, but if you take your time, and seek out large, established organizations who have happy members, and a good retention rate, you should do fine.
It would also be a good idea to get a history of rate increases for existing clients who have had their policy for a number of years and have had claims.
If the increases are more than around 5% per year, or more each year, it may be a good idea to look elsewhere.
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