Innovations in Health Insurance – 3-year fixed premiums
Insurance is an important part of everyone’s financial plan. Many people with life insurance purchase term life insurance. Term life insurance provides a fixed premium for a set period of time for a certain death benefit. For example, I have a 10-year term policy. I pay the same $200 premium every year for the entire ten-year period. The premium does not increase over time. Neither does the death benefit change.
These same fixed multi-year premium rates are coming to health insurance. Recently, USGroup a health insurer based in Texas announced that they are offering fixed rate health insurance. Someone purchasing health insurance can choose a policy with a premium that is fixed for two or three years.
With HSAs and fixed rate premiums, the health insurance market is changing rapidly. Unfortunately, Maine people will not have a chance to purchase USGroup’s fixed rate insurance. Because of Maine’s health insurance regulations, only Anthem, Aetna, Harvard Pilgrim and MEGA Life & Health sell health insurance in Maine. If Maine’s health insurance market were more competitive, Maine people would have access to affordable and innovative health insurance products available elsewhere. Until then, everything may indeed be bigger and better in Texas. (Plus, Texans don’t have a state income tax!)