4th Quarter Rate Increase: What You Need To Know
Now that we’re into the 4th quarter, The Insurance People have seen rate updates consistent across all carriers, with a 10-15% rate increase, averaging around 13% for renewals. This may seem steep, but there is some good news: both main carriers, Blue Cross Blue Shield and UnitedHealthcare, have each rolled out their own series of new plans. These new plans are focused on countering the rate increase to keep plans affordable. Blue Cross Blue Shield and UnitedHealthcare are offering access to high-quality providers within their large PPO networks and smaller, yet still expansive PPO networks. For instance, Blue Cross Blue Shield’s smaller PPO network includes 80% of their total network, and United Healthcare’s smaller PPO is closer to 90% of their entire network. Choosing a smaller PPO network plan will consistently grant you access to everything you need, also.
The new plans with these main carriers also include an overall better plan design. This means you have access to a lower deductible, lower out-of-pocket costs, and better copays when you choose the smaller network. And because the smaller network is still such a large proportion of the main network, you retain access to the providers you regularly use. When looking up doctors for people under these new plans, people have been very pleasantly surprised to see their access to providers remain the same, even with a purportedly smaller PPO network. So we think these plans are very smartly designed, while keeping the potential added costs at bay.
Some interesting relationships between insurance companies and hospital groups have also emerged that work to the advantage of the consumer. For instance, UnitedHealthcare has a new PPO line that is connected to Advocate Health Care, that allows lower copays and deductibles when using the Advocate network of providers. Similarly, Blue Cross Blue Shield has partnered with Northwestern, Rush, and Endeavor Health for a new line of hospital group-based insurance products. If you use providers within the same hospital system, there is quite an incentive to use these kinds of new plans to keep costs down.
Additionally, in the 4th quarter, the ancillary market—dental, vision, short term, long term, life insurance—has become quite competitive. We've noticed rate decreases in most of these product lines, making it more affordable than ever for both individuals and groups to offer these benefits. We love good news!
Despite the Q4 interest rates increasing, The Insurance People know how to get you the care you need without having to sacrifice your budget or your preferences. We have access to great plans that we know will work for you.
Want to learn more about new plan options? Contact us via email and we’ll find the right plan for you.
