Health Insurance: Points of Interest

After speaking with underwriters in the top 40 or so companies, Ed Hinerman, a life insurance specialist with the Hinerman Group, found a discernible lack of interest due to lack of data. Companies would say that they couldn't consider someone with type 1 diabetes until they were either age 15 or age 20. A peer in the industry told Ed the knee jerk reaction was because insurance companies haven't done mortality studies on children. They simply don't have any data upon which to base the pricing for products. Uh oh!! That coupled with the fact that there really isn't any financial incentive for them to study and create products for a relatively small market that would produce relatively low premium, kind of sets the tone. Well, now the war has been defined and the battles are becoming clearer…

…Bottom line. Life insurance companies make big money and for them to cut and run from children just because it might not make them more big bucks, or because they really haven't done their homework and aren't interested in doing it, isn't acceptable. Game on! I hope we can make a good showing, at the very least - hit one out of the park for the fans. Thanks for inviting me to play, Ed!
Premiums for employer-based health insurance have risen 6.1 percent in 2007, down from a 7.7 percent increase a year earlier, according to an annual survey of about 2,000 employers by the Kaiser Family Foundation, a nonprofit research group.


But despite the slowdown in premium increases, the cost for family coverage has risen 78 percent since 2001, while wages rose 19 percent and prices for goods and services have risen 17 percent in that period, according to the report.

"Even though the rate of increase is moderating a little bit, nobody is celebrating, because it's year after year of increases," the foundation's president, Drew Altman, said.

The findings come days after the government unexpectedly said U.S. employers cut 4,000 jobs in August, the first drop in four years. The moderation in premium rises comes amid robust economic growth, but that is seen threatened if growth stalls.
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