Print Posted by Bob Smith on 08/01/2017

Fixed Indemnity Health Insurance

Avoid double digit health premium rate increases

Recent “Obamacare” repeal and replace attempts in Washington and Congress, demonstrate that the state of the individual 2018 market is facing unchartered waters and health insurance options foresee rough seas ahead.

The continuing debate has been boisterous and reflects the ongoing discord between the sparring parties on each side of the aisle. Unfortunately the voices of those most negatively impacted have been the least heard in the debate. Opinions of Independent Contractors and individuals responsible for purchasing health insurance do not clearly resonate among the clamor of debate. This group of individuals is bearing the brunt of high health premiums because income levels disqualify them from obtaining federal tax credits or subsidies. Without a champion speaking on their behalf they face an unenviable position of increasing health insurance premiums and diminishing benefits.

Admittedly I think my crystal ball is broken, as it only tells me how we got into this mess and not what to expect in 2018. Reports of carriers leaving markets and State Insurance Departments receiving rate increases of up to 40% give a good indication of what we can anticipate. But all is not bleak on the horizon. There are viable alternatives to help refrain from accepting higher premiums, reduced overall coverage or to take the path of being self-funded and go without health insurance. The latter, not a viable risk adverse strategy.

Fixed Indemnity Health Plans with PPO physician networks can be the better “mouse trap” you seek as they lower cost while enhancing the level of care and choice. Not unlike ancillary benefits that pay lump sums for cancer, heart attack and other critical illnesses, Indemnity Health Plans pay a fixed amount of your choosing for medical situations (i.e. doctor visits, hospital admission and out-patient surgery, etc.). Plan premiums are typically 30% to 50% lower than ACA Plans, which in real dollars can mean a family saving up to $700 monthly. They typically are underwritten, not required to have the mandated minimum essential coverage of “Obamacare,” just a few reasons for lower premiums.


In summary there is no time restriction when you can select a Fixed Indemnity Health Plan. Unlike Affordable Care Act Plans there is no open enrollment period and most importantly the premium will not be greater than your mortgage or rent.

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