What to Do if Your Insurance Premiums Spike

Last year, The New York Times made a grave prediction: COVID-19 would cause insurance premiums to soar by as much as 40%. So far, we’ve yet to see this happen, and frankly, we’re unsure if it will. But some experts out there are predicting the worst, and it never hurts to be prepared.

In early November, health insurance beneficiaries will receive notification of any rate changes in their plan. If you find that your monthly insurance premiums are going up, you have options to prevent that.

Here’s where to start if your health insurance premiums spike:

1.) Know Your Insurance Premium Subsidy

With the passage of the American Rescue Plan, many more people are qualifying for insurance subsidies. In addition, existing subsidies have been increased. What this means is that there’s a good chance that your subsidy will increase enough to balance out the rate increase.

2.) Comparison Shop for Cash Discounts

Many healthcare providers will offer discounts for patients who are paying cash. If you need medical treatment and you are under-insured, cash discounts can sometimes cost less than the plan deductible, saving you critical dollars when you need them the most.

When you’re planning a medical treatment or procedure, don’t be afraid to “shop around” for the best discounts.

3.) Research Direct Primary Care (DPC) Arrangements

If your subsidy does not outweigh your rate increase, there are ways to stay healthy and protected without traditional insurance. One of these options is Direct Primary Care, or DTC. This new form of healthcare is a direct, subscription-based arrangement between provider and patient. In exchange for a monthly fee, the patient has unlimited access to primary care doctor visits.

DPC is being celebrated by providers for improving doctor-patient relationships. Meanwhile, patients have a new way to stay healthy and prevent medical issues before they happen, sometimes for less than $100.

4.) Consider Healthcare Cost Sharing

A popular alternative to health insurance, Healthcare Sharing Programs are a viable way to stay protected against emergency medical costs without paying for coverage that you don’t need. At roughly 50% of the cost of unsubsidized insurance, they’re also a good way to lower monthly costs almost immediately.

Healthshare plans are not insurance. Instead, they are privately-sponsored programs that facilitate the sharing of medical expenses in a given community. Traditionally, most healthshare organizations are founded on the principles of the Christian faith. Today, health sharing is available for any person, family, or small business that wants it.

5.) Combine DPC and Health Sharing to Lower Your Insurance Premiums

By combining the low-cost preventive care of a DPC with the emergency protection of a Health Sharing program, it’s possible to build a healthcare strategy that is more comprehensive than either option on their own. And still, it can be less expensive than unsubsidized insurance.

The best way to combine DPC and Health Sharing is to find a plan that is specifically built for this purpose. MPB Direct DPC is a healthshare program offered by MPB Health that is designed to directly integrate with an existing DPC arrangement.

6.) Ask Your PBM if There’s a Better Option to Lower Your Insurance Premiums

Sometimes, it doesn’t matter how much research you do. Feeling confident about your healthcare strategy is a lot easier when you’re working with a real-life person that cares. With a free consultation, you and your Personal Benefits Manager (PBM) can discuss your needs one-on-one, then find the best-fitting strategy.

Click here to schedule an appointment, or call 800-913-0172 to get started.    

To your health and wealth,

Wiley P. Long, III
President - HSA for America

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