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I applied for health insurance and the rate came back higher than I was quoted–what can I do?

04-20-2010 by Colleen King

Even though the big, massive health care reform bill has passed, not much will be changing for the next couple of years. So if you’re on your own and needing to buy an individual plan for you and/or your family, how should you do it? Call an independent agent, call an insurance company, or just go online and not deal with any of those pesky people?

Well you know what I’m probably going to suggest, but here’s why. If you go directly to a carrier, they can only tell you about their products. You can go to one of the big online ‘anonymous’ type sites, but do you really know what you are looking at? If you are versed in health insurance, of course you can do this on your own, no sweat. But I find most people are still confused and if they do it on their own, they are surprised with what they end up with.

Here’s another reason to go with an agent. I had a client approved this week, and she had a couple of relatively minor issues, but instead of getting approved at a standard rate, she was rated up 50%! I called her, clarified what the circumstances were for the two reasons given for the increased rate and then emailed my account executive at the carrier. I explained the circumstances, and was hoping he could get the rate from a 50% increase to maybe just a 25%. Imagine my surprise when he came back with a STANDARD rate. I was thrilled, my client ecstatic, the world was a happy place.

Does this happen all of the time? No, not even most of the time. To me, in looking at the situations these issues were borderline. And my account guy being the gem that he is, he agreed. There’s a strong probability that if I had just called underwriting, I wouldn’t have gotten the standard rate back. But maybe I would have.

Point is in all this, most individuals wouldn’t have known where to go with this, would have just said oh well, and either kept the plan at the higher rate or dropped it all together. One of the big reasons for health care reform was for the states where there was little or not competition. And there are some states with only 1-2 carriers. But in California we have 6-7 major carriers and some smaller ones, so there is plenty to chose from. That’s another reason to use an independent agent, so they can help you find what you want and with a carrier that’s best suited for your situation.


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