by Guest » Wed Jul 29, 2009 09:58 am
Can insurers use teaser rates for health insurance? i.e. offering you a lower rate at the time of signing up and increasing the rate later. How would I know whether I'm falling a prey to teaser rate or not? And, what would be my recourse if such a thing happens?
Posted: Wed Jul 29, 2009 01:27 pm Post Subject:
Well, even when there is a rate hike, you can't always describe the earlier one as a 'teaser rate'. More often you'd need to weigh the reasons and compare with offers from other providers, in order to know whether you're falling prey! Purpleheaded08
Posted: Thu Jul 30, 2009 04:16 am Post Subject:
No, health insurers are not allowed to offer teaser or other similar offers to entice a potential buyer into a purchase with the purpose of whacking the insured with a big fat rate hike later.
In every state that I know, individual health policy premiums can only be raised on a "class" basis, and generally only once per year. Most states will not allow an insurer to single -out an insured due to his/her health conditions for a rate increase.
Group contracts are similar, but are normally rated based on the averages presented within the group- average age, gender make-up and risk presented. Lumberjacks or accountants? You get the idea.
InsTeacher 8)
Posted: Fri Jul 31, 2009 10:18 am Post Subject:
Well Teacher, it is not quite clear to me yet as to how they define such classes. Suppose the average ages of accountants (with the same carrier) are same across two different organizations A & B-
would it be such like a rate-hike for the group A would also be applicable to group B ???
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