Any insurance gurus out there?

I'm trying to explain something to someone and need to find out if I am correct.

Let's say you are employed by a small company based out of state. They offer you health coverage at very high rates because this state has a very high cost of living. Insurance rates where you live are usually much lower....

Can you ask your employer to give you health coverage with rates from the state you live in rather than the state they are based in? Let's say....instead of coverage with BCBS of **whatever state......BCBS of the state in which you live... ???

Make sense?

I always thought you had to pay whatever the health coverage cost is from where the employer is based. Help?

 

Well I got a warning here before so I can't say what I really want to say about this $^^@@care thing..But heres a good article--

http://www.forbes.com/sites/aroy/2012/05/11/will-buying-health-insurance-across-state-lines-reduce-costs/

 

Does this only apply to small companies? So the employer wouldn't be able to get coverage for this person in the state where the employee works anyways then....am I understanding it right?

 

I'm thinking you are correct with your statement on coverage...On small companies I don't know....

Hopefully a Insurance guy or woman for that matter will partake in this..

 

So I absolutely qualify with your "guru" status for insurance, but not knowing your specific situation, I want to be careful.

Much of rates, particularly in small groups, is based on two factors - the cost of your small group (in other words, if we're talking 20 people and 3 get very sick, the group is penalized) and the level of coverage that is offered. Generally, you'll find that "high cost of living" areas or higher cost care areas don't affect everything as much as those.

Unfortunately, if the group has an older or sicker population, you, as a healthy individual associated with it, will be penalized to try to cover the costs (this does depend on how your state does business, which I wouldn't know, but I assume they allow small group level medical underwriting). Assuming that's the case, that cost is actually far more valid than anything else. What you'll find is that if you're healthy, you may be able to get an individual coverage at a better price, but watch on the level of coverage offered - watching things like deductibles and prescription coverage specifically.

If you can do something lower for a year, ask if the employer would be willing to pay a portion, but watch out, as your "opt out" may directly affect the rest of their premium in future years. It's also important that you know that they'd allow you in the next time they renew. This will become a key IF they continue to offer for 2014 and beyond as healthcare reform kicks in.

I'm not sure that makes 100% sense or not - I just kind of spoke top of mind, but I'll try to monitor if you have any other questions. Please note that I work in insurance, but am likely not licensed in your state (yes, insurance does that to you in terms of disclaimers).