Insurance Companies and their Rates (Essay Sample)

Insurance Companies and their Rates


According to Timmeren (2013), the insurance costs in Oklahoma will increase by up to 100 percent in the next year. However, they will not necessarily affect everyone because it will only affect those in the federal exchange program. Blue Shield Blue Cross rates will increase. This will be an increase of between 30 to 100 percent. According to Veith (2013), insurance companies such as Blue Cross Blue Shield will have insurance rates of between $100 to $1000 monthly depending on the plan type, tobacco use, geographical location and age of the clients. The Blue Shield Blue Cross insurance company, however, has a low policy of $16 per month. The consequence of this cover is that it will cause the buyers to pay all their medical expenses. This could be up to an amount of $6350.
According to Veith (2013), these amounts could reduce depending on the income of the buyers and the federal tax credits. This will increase access to healthcare for all citizens of the country. The figures in Oklahoma do not exceed the Affordable Care Act rates in other States in the country. Aetna Insurance Company has a silver plan for which they charge their buyers $302 per month. This applies for a single adult who is not a smoker. Coventry, another insurance company, offers $329 for a similar package. The Congressional Budget Office has projected that the amount for a silver plan countrywide would be about $320 and therefore the two insurance companies are within the allowed threshold.
There are cheaper rates with the bronze package. However, these rates have high costs for the buyers and policyholders because they have to pay from their pockets. The silver plan is also favorable for people aged under 21 years. In the Oklahoma City metropolitan area, they will pay $150 per month. This is the rate for the Aetna Insurance company. The rates increase with age as follows: $236 for people aged between 21, 24, and $268 for people who are 30 years old, for 40 year olds. It rises to $302, for 50 year olds, $421, for 60-year-old people, $640, at 64 years it is $707 and people beyond 65 receive coverage from Medicare. In case there is a smoker in the family, they have to pay an extra 30% in Blue Cross Blue Shield insurance plans (Veith, 2013).
According to Veith (2013), Oklahoma has five areas represented differently in terms of insurance. Therefore, depending on each geographical region, the rates differ. With some insurance companies, the lowest rates are in the metropolitan areas. The premium rates for health insurance are lower than projected. The people in Arkansas p...