Health Insurance And Insurance Brokers
Below is a MRR and PLR article in category Finance -> subcategory Insurance.
Health Insurance and Insurance Brokers
Health Insurance: Navigating the Process
Summary
Choosing a health insurance broker can complicate and increase the cost of securing health insurance. Here's a family's firsthand experience in finding coverage, highlighting potential pitfalls and offering insights on navigating the process more efficiently.Article
When searching for health insurance, using online resources to compare policies can save both time and money. Many websites provide estimates for various insurance options, helping you understand potential costs and coverage. However, working with an insurance broker can introduce unnecessary complications, as I learned firsthand last year.
As someone self-employed, I handle my family's health and life insurance myself. During our move from New Jersey to North Carolina in 2004, I anticipated two things about our health insurance:
1. I needed to find a provider that covered North Carolina.
2. Rates would be about half of what I paid in New Jersey, with slightly better coverage.
Before moving, I contacted a well-known online insurance broker and received quotes. We selected a company and received paperwork from the broker about ten days before our move. In hindsight, starting earlier would have been wiser, as we were busy preparing for the relocation. I packed the paperwork with our belongings and only managed to complete it a week after arriving in North Carolina.
While working with the broker was straightforward, it added an unnecessary layer to the application process, ultimately delaying our approval.
After submitting our paperwork, the broker confirmed receipt via email, stating they would review it before forwarding it to the insurer. Over the next few weeks, we received several updates from the broker:
1. Reviewing your application.
2. Sending it to the insurance company.
3. The insurer plans to review it in about a week.
4. Expect delays due to high application volumes.
5. Refrain from contacting the insurer; they would keep us updated.
Initially promised a two-week review and approval by the broker, we found the process took much longer. Attempts to call and email the broker revealed that this timeline was unrealistic. When we reached out to the insurer, they had trouble locating our application, which was eventually found due to a mistake by the broker sending it to the wrong department.
The initial online quote was off by over 20%. Once the insurance company factored in pre-existing conditions, our rates increased significantly. We understood the quoted rate wasn't final, but the difference was still hard to accept.
Our thoughts during the process included:
1. Knowing the final rate earlier might have prompted more shopping around.
2. Delays and timing forced us to complete the application, as our NJ coverage needed to end by the year's close.
By mid-December, ten weeks after submitting our application, we received approval and coverage confirmation. Throughout this lengthy process, we contacted the insurer directly to check our application's status, never receiving assurance of approval until it happened.
Recommendations for Shopping for Health Insurance
1. Comparison Shop Online: Use online brokers for general cost estimates. Be aware that quotes may not account for pre-existing conditions.
2. Contact Companies Directly: Narrow your list to three companies and reach out to them directly. Brokers can be an unnecessary step in this process.
3. Apply Early: If you need insurance by a specific date, start the process well in advance to accommodate delays, misplaced paperwork, or changes. We managed to adjust our coverage start date to align with canceling our NJ provider.
This experience was both revealing and challenging. While online quotes are tempting, consider our journey before relying solely on an online broker.
You can find the original non-AI version of this article here: Health Insurance And Insurance Brokers.
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