These amalgamation of paragraphs are designed to help you choose the right health insurance plan in Florida. The right company, the right deductibles, options, etc. The end result is that you are health insurance wise, saving thousands of dollars, while preserving your health, mental and physical well being.
The relatively small payment that you make for doctor visits and prescriptions. This payment has nothing to do with your deductible. So there is no need to keep track of your co-payment expenses. The relatively large payment that you must pay before the company will pay benefits. The deductible has nothing to do with the co-payment. First you pay the entire deductible then you keep on paying. A 70/30 to $10,000 plan means that after you pay the deductible, you continuing paying 30% of the next $10,000 which is $3,000.
You may say that it is the big insurance companies who control insurance premiums and the health insurance industry. Wrong. In my opinion, the only player is the Florida Department of Insurance. The folks that work and run the companies in Florida are really conservative, nerdy type of guys. In fact, the big insurance companies are public companies traded on the stock exchange. These folks that run the company, set up a health plan, get the plan approved in the state and start selling. The premiums that the insurance company charge is based on medical expenses of the policy holders. Every time the company wants a rate increase the accountants simply bring the numbers to the Florida Department of Insurance and they approve the rate increase based on a specific formula. Every player in this process is a nerdy guy. There is no such thing as bargaining, opinions or feelings. It just so happens that any insurance agent that is new to the market with a particular health insurance line has a competitive advantage. If the company can successfully dissuade “sick” people from taking their health insurance their competitive advantage can last for a few years.
The fact is that most people who apply and get accepted for an individual insurance policy don’t go to the doctor much in the first few years. If an illness occurs then you will be definitely keeping the Florida health insurance policy and costing the company a fortune, possibly even millions of dollars. The new insurance company needs to pick up new customers, so, of course, they need affordable insurance rates initially. The formula is relatively simple.
By offering low cost health insurance, you build up a big client base until the rates get more and more expensive because of those few folks who got sick and actually used the insurance. But that does not usually happen for a few years from the time that the insurance company had entered the market. I have seen this phenomena happen time after time with various health insurance companies. That is the system. After a few years if the premiums get too expensive, there may be a better deal. There is a catch; new applicants have to be medically qualified for the new insurance company. As well, pre-existing conditions will come into play again.
Insurance agents throughout Florida will be selling a specific plan for the same price. This is how the Florida Department of Insurance helps you during your search for an affordable health insurance plan. Very simple. Prices are regulated. The insurance agent in Miami will offer the same price as an insurance agent in Orlando for a particular plan. Shopping will not help lower the price. You can shop till you drop and the price stays the same.
We know that “hypochondriacs” cause an excess amount of health care expenses over and above what they pay in premiums. The smart insurance companies try to dissuade these folks from knowing that their company even exists.
You may ask what do “hypochondriacs” have to do with deductibles? A person who loves going to the doctor will want a very low deductible. The smart company will be charging an unreasonably high premium for the lowest deductible.
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