Iowa Association of Health Underwriters

Iowans have already experienced a lot of distress over the last few years where health insurance plans have dramatically increased premiums, provided diluted benefits, and, currently, enduring plan deductibles and copays at a higher rate than ever.

One of the reasons the individual market is unstable is because it lacks enough young, healthy enrollees paying premiums to offset the claim costs of older, sicker enrollees. Actuaries project that millennials must comprise 40 percent of the individual market pool if rates are to be stable. But only 28 percent of enrollees are 34 or younger.1 Consequently, health insurers have struggled.

But the primary reason that health insurance is growing more expensive is because medical care is growing more expensive. Prescription drug costs shot up 13.6 percent between 2014 and 2015. 2 Medical costs increased 6.8 percent in 2015 and are projected to jump 6.5 percent next year.3

Many insurers are responding to their corporate losses by reducing or eliminating agent commissions or pulling out of the individual market altogether like the actions taken by Wellmark and Aetna for 2018.

This November, the Affordable Care Act's insurance exchanges opened for business. America's 32 million uninsured have a few more weeks to select a policy that will cover them in 2018.4 In Iowa, this year’s Affordable Care Act’s enrollment season has many consumers in paranoia with the vacillating collapse of the individual market --- leaving nearly 72,000 Iowans feeling frustrated due to facing the loss of their individual policies.

With the staggering number of Iowans affected by health insurance carriers pulling out of the exchange – leaving Medica as the only option for insurance coverage5 -- now is the most critical time for consumers to seek assistance from a licensed health insurance agent or broker to secure the right health plan.

Agents and brokers work to help consumers understand the options that are available and get the coverage they need. They've been matching consumers with appropriate coverage for decades. They're our nation's best hope for getting the millions of uninsured Americans covered.

It's best to find an insurance agent who's willing to think outside of the box. Health insurance is a complex product. Even for industry experts, it can be difficult to find the right plan at the right price.

Agents and brokers have been able to shield their clients from some of these trends. According to research from the University of Minnesota, premiums are 13 percent lower in counties with the greatest concentrations of brokers.6

Agents don't just save consumers money -- they also help patients with claims or reimbursement issues following enrollment.

Furthermore, agents are familiar with the details of plan and can help an enrollee find a plan that fits his or her specific health needs.7 And brokers are legally required to have liability insurance, which protects consumers if there are any errors in the enrollment process.8

Given the many changes in Iowa’s insurance market this year, it is essential for Iowans to get help from a licensed insurance agent. Iowans are encouraged to seek an agent through the National Association of Health Underwriters’ (NAHU) Find an Agent feature, which will locate an agent or broker in their local area.

During this open enrollment season, getting covered should be a no-brainer. And, utilizing a licensed insurance agent who can help explain options that are available in all consumers’ specific situation should be a must.

Janet Trautwein is CEO of the National Association of Health Underwriters.

1 http://www.modernhealthcare.com/article/20160514/MAGAZINE/305149980
2 http://www.tirebusiness.com/article/20150520/NEWS/150529989/prescription-drug-costs-drive-rise-in-healthcare
3 http://www.pwc.com/us/en/health-industries/behind-the-numbers/
4 http://kff.org/uninsured/fact-sheet/key-facts-about-the-uninsured-population/
5 http://www.weareiowa.com/news/local-news/potential-insurance-options-for-desperate-iowans/847770360