New Year, New Plan

Many Americans began the new year with a new health plan. Some made the change on their own; others had the change made for them. Here are a few examples of consumers and their health insurance changes for 2022:

• Single adult approaching 40. She started a new job, which meant a new employer-sponsored health plan. The employer used the same health insurer as her past coverage, but she was pleased that the health plan had better benefits and lower premium.
• Sole proprietor in 50s. While he wouldn’t qualify for subsidies, he evaluated his options on HealthCare.Gov. He re-enrolled in the same plan even though the out-of-pocket costs—annual premium, deductible, and out-of-pocket maximum—increased significantly.  
• Employee in early 60s. Her employer changed carriers to reduce its insurance costs, which meant a new provider network for all employees. The employee counted the years before she turns 65, retires with Medicare coverage, and chooses her own doctors.
• Business owner in his 70s. He re-enrolled in Traditional Medicare and supplemental coverage. He purchased a long-term care policy because he worried about the need for services that are excluded by his current coverage.
• Retiree approaching 80. She switched Medicare Advantage plans during open enrollment. While she lived on a fixed income, she decided to spend more to have a “bigger and better” provider network given recent health issues.

Change is never easy. Consumers may have had personal changes in their jobs, health, families, or income. Employers may have changed carriers, plans, or premiums. Insurers may have changed products and prices.

While health insurance is far from a perfect market, each of these consumers faced changes to their health care coverage in the new year. In other words, they are Mastering Health Insurance.

Photo: Lake Michigan on a January day. Here’s to change.