United Health Care Drops Individual Coverages for 2017

[Kahuna32162]

We rec'd notice last month that United Healthcare of Florida would no longer be offering individual plans for 2017. From the letter:

"Thank you for being a United Healthcare member. Each year insurance companies can make changes to the plans and coverage options they offer. Unfortunately, United Healthcare of Florida Inc will no longer be offering individual plans in 2017. The last day of your coverage is December 31, 2016"

Since we are not eligible for Medicare, yet, and use the Villages Heath System, our options are limited to a small list of carriers that they will accept. A comparable policy to our current UHC coverage will increase our premiums by about $250/month for the same coverage and deductible as our current policy.. I was under the impression that United Health Care was the preferred insurance in the Villages, but apparently not, in my case anyways. If you are covered under a former employer or group plan, I think you're OK, but individuals, under 65, need to start shopping for new insurance.

[billybye]

Thanks to Obamacare, at least you have an option. It's not great, but it is better than nothing. I know buying individual health care after age 50 is cost prohibited because i have been there. I am not trying to be political, just stating a fact. Actually I am an Independent because I don't like either party.

[virgind]

Take a look at Humana

[NYGUY]

....I was under the impression that United Health Care was the preferred insurance in the Villages, but apparently not....

I think you said UHC was dropping all individual plans in the state, so I don't think it's related to The Villages. Also, I think the "preferred" plans of The Villages Health are UHC's Medicare Advantage Plans (medicare eligible [age 65 and over and individuals on Social Security Disability] only, not all UHC plans).

[blueash]

UHC is exiting individual plans in most of the country to focus on their group insurance plans. It is likely other carriers will see this as an opportunity and enter the market. Adverse selection has been an issue making the pricing of individual policies a guessing game. Healthy people don't buy individual plans as they perceive them as too expensive (until something happens and they see what huge bills they receive). However people with chronic illnesses are happy to pay for insurance knowing that they are likely to save more than they spend. In a group plan you get the healthy and the unhealthy people with a slight bias toward healthy as persons with severe illness are less likely to be employed where most of the group coverage is issued. The exact opposite for individual plans. This is why there is such a big difference in the insurance cost for buying your own plan vs getting it as a member of a group. The insurance company knows that if you are buying individual health insurance you are more expensive to cover, generally. And if they guess wrong and charge 20% more when the bills come in at 30% more, they have lost $$$. And as they raise prices for individual plans, to cover this adverse selection, more healthy people decide not to get insurance and the remaining consumers are even more likely to be expensive. This is why the ACA required all of us to get covered, to lessen adverse selection. But it didn't work as the penalties for not getting coverage are too low to act as a deterrent.

[Bjeanj]

Blue ash, that is a very good explanation of the law of large numbers and consequences of adverse selection. Same thing for property/liability insurance (think auto insurance). I hope everyone reads and fully understands it.

[goodtimesintv]

Blue ash, that is a very good explanation of the law of large numbers and consequences of adverse selection. Same thing for property/liability insurance (think auto insurance). I hope everyone reads and fully understands it.

Most people who bash insurance companies (that have to stay solvent to pay all future claims) do not understand what a risk-sharing pool is.

[Bay Kid]

" Those big, bad insurance companies". That is what our leaders called them in '08. I have been with Anthem for 35+years. They have been terrible since the Unaffordable Care Act. This is only going to get worse.

[NYGUY]

UHC is exiting individual plans in most of the country to focus on their group insurance plans. It is likely other carriers will see this as an opportunity and enter the market. Adverse selection has been an issue making the pricing of individual policies a guessing game. Healthy people don't buy individual plans as they perceive them as too expensive (until something happens and they see what huge bills they receive). However people with chronic illnesses are happy to pay for insurance knowing that they are likely to save more than they spend. In a group plan you get the healthy and the unhealthy people with a slight bias toward healthy as persons with severe illness are less likely to be employed where most of the group coverage is issued. The exact opposite for individual plans. This is why there is such a big difference in the insurance cost for buying your own plan vs getting it as a member of a group. The insurance company knows that if you are buying individual health insurance you are more expensive to cover, generally. And if they guess wrong and charge 20% more when the bills come in at 30% more, they have lost $$$. And as they raise prices for individual plans, to cover this adverse selection, more healthy people decide not to get insurance and the remaining consumers are even more likely to be expensive. This is why the ACA required all of us to get covered, to lessen adverse selection. But it didn't work as the penalties for not getting coverage are too low to act as a deterrent.

Very good observations and explanations!!

[RGump]

There have been lots of changes since the ACA came about. Some good and some bad. Having been in the business for 30 years I can say that I have never seen so much confusion and turmoil... Every year is a "new Adventure" and we wait to see the changes to come. I already know that Florida Blue is staying in the market for on and off exchange. If you need help I will be glad to refer you to someone. This is not an advertisement.. I am a Villager and have been very hesitant to even post but finally decided to do so.

[outlaw]

Thanks to Obamacare, at least you have an option. It's not great, but it is better than nothing. I know buying individual health care after age 50 is cost prohibited because i have been there. I am not trying to be political, just stating a fact. Actually I am an Independent because I don't like either party.

Nice spin. ACA is why the insurance companies are dumping plans, and why TV Health is forcing Medicare folks into their HMO.

[Bay Kid]

nice spin. Aca is why the insurance companies are dumping plans, and why tv health is forcing medicare folks into their hmo.

so true.

[dbussone]

There have been lots of changes since the ACA came about. Some good and some bad. Having been in the business for 30 years I can say that I have never seen so much confusion and turmoil... Every year is a "new Adventure" and we wait to see the changes to come. I already know that Florida Blue is staying in the market for on and off exchange. If you need help I will be glad to refer you to someone. This is not an advertisement.. I am a Villager and have been very hesitant to even post but finally decided to do so.



Please keep us up to date. It's nice to have an expert providing commentary.


Sent from my iPad using Tapatalk

[billybye]

Nice spin. ACA is why the insurance companies are dumping plans, and why TV Health is forcing Medicare folks into their HMO.
ACA has nothing to do with TV Health forcing people into their plan.
If you ever looked for insurance after being dropped by employer you would know the ACA is better than nothing. Let's not make this political.

[Avista]

Before ACA and a coupLe of years before we were Medicare eligible, our insurance cost us $1000 per month with $1000 deductible. I had just recovered from Breast Cancer. Of course anything pertaining to that was excluded. I can't help but think things are better now.

[moosemose]

Will this affect AARP/United Health as supplement to Medicare?

[NYGUY]

Will this affect AARP/United Health as supplement to Medicare?

Yes, will need United Healthcare Medicare Advantage Plans.

[villagetinker]

I spoke with a rep from SHINE today. Apparently there has been NO decision on what will happen to the 15,000 (or so) current patients of Villages health system that have a "grandfathered" Medicare supplemental plan, IF the VHS decides that only the ADVANTAGE plan will be accepted. This is or can be a very big deal for these patients. During this conversation I found out that Monroe Regional hospital is part of the VHS (not sure of the details), the problem is that very few if any of the VHS doctors have privileges at this hospital. Confused?? I am.
As I understand it (from this conversation) there should be a 'decision' in the next 2 weeks or so, and we all will be getting letters. So at this point, we are going to wait until we get a letter, then look very carefully at our options (stay in VHS, which means going to the advantage plan, or leave for doctors outside VHS with our supplement plan), and go from there. What we will not be doing is going to just the UHC offices to get their info, personally I doubt this is a balanced view.
The bottom line as I understand it, will be hold the ADVANTAGE plan handles doctors and specialists, and hospitals OUTSIDE of the existing system, or will there be additional resources added to the existing ADVANTAGE system to allow access to faculties and doctors outside the system for specialty care.

[wendyquat]

From personal experience I can't imagine that a big percentage would give up their current supplements to join an Advantage plan! The advantage plan seems a very good option for those without health problems but, as I understand it, can severely limit your choice of doctors when you may need services not covered under the advantage plan. Maybe that's the gist of it all! Under the advantage plan THEY control your health care, not YOU!

[2BNTV]

Advantage plans are geared for people who are relatively healthy and need preventive maintenance for their health needs and are relatively cheap.

Original Medicare and supplements are for people who have a condition that needs constant monitoring and possible hospitalizations. Also, peace of mind they won't receive any bills for their care. More expensive than advantage plans.

I plan to switch to original Medicare plus a supplement when my health needs would require it, but that's me.

Everyone must do what's best for themselves.