Misleading insurance companies? Say it ain't so!
by digby
This is happening:
Donna received the letter canceling her insurance plan on Sept. 16. Her insurance company, LifeWise of Washington, told her that they'd identified a new plan for her. If she did nothing, she'd be covered.
A 56-year-old Seattle resident with a 57-year-old husband and 15-year-old daughter, Donna had been looking forward to the savings that the Affordable Care Act had to offer.
But that's not what she found. Instead, she'd be paying an additional $300 a month for coverage. The letter made no mention of the health insurance marketplace that would soon open in Washington, where she could shop for competitive plans, and only an oblique reference to financial help that she might qualify for, if she made the effort to call and find out.
Otherwise, she'd be automatically rolled over to a new plan -- and, as the letter said, "If you're happy with this plan, do nothing."
That's exactly what happened to me. The company phrased the letter in a way that clearly encouraged me to "do nothing" and pay twice as much. But here's my question: who does that? I'd assume that most wealthy people are already buying expensive plans with good coverage so their's shouldn't go up any more than usual. (I'm making that assumption because the excuse my company gave was that my old policy didn't fit the new law's requirements.)But if that's not the case and they're even cancelling cadillac policies, maybe they figure rich people just pay without thinking. (I wouldn't know how rich people deal with big new bills.) But anyone who isn't wealthy is going to see that big new number and take action aren't they?
I suppose there are some people who have their bills on autopilot or who don't follow the news and don't understand that something major has happened in the healthcare business that requires their attention. But for the most part, people who cannot afford to pay a lot more for health insurance are the last people on earth who are just going to passively accept their insurer's word and start paying a much higher premium without looking around for alternatives. It's a lot of money for an average person.
I think insurance companies are testing the market, trying to see how people react to these changes and hoping that a lot of their customers are confused or stupid and simply accept the huge increase in premiums. It's an extremely cynical form of marketing. But this is the insurance industry we're talking about here so nobody should be surprised that they are trying to find ways to game this coming and going. It's certainly adding to the general sense of chaos. And they apparently figure that will work in their favor.
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