The Most Affordable Cities For Individuals to Buy Health Insurance

Transcription

1 The Most Affordable Cities For Individuals to Buy Health Insurance Focusing on Health Insurance Solutions for Millions of Americans Copyright 2005, ehealthinsurance. All rights reserved.

2 Introduction: The Most Affordable Cities for Individuals to Buy Health Insurance report was created to provide consumers information: About the affordability of health insurance in the 50 largest cities in the country; To encourage them to research potential savings on their health insurance premiums so they can save money within their personal budgets; and To use as an important financial data point when making relocation decisions. The research for this report was conducted the week of March 9, 2005, examining 4,000 health insurance plans from 140 health insurance companies in the 50 most populous cities in America, using as the source of information in all cities except Boston, Honolulu and San Juan, Puerto Rico. Health Insurance premiums for Boston, Honolulu and San Juan were determined using information from the Massachusetts Division of Insurance, the Hawaii Division of Insurance and the Puerto Rico Division of Insurance, respectively. Page 2

3 Methodology: Insurance premium quotes for individual policies were collected in each of the 50 largest U.S. cities, using uniform applicant and policy criteria. Cities were ranked based on the lowest available quote matching that criteria for each city. Selection criteria Applicant information Primary Applicant date of birth (DOB): 01/01/1975 (Age =30) Non-smoker with no pre-existing medical conditions Quotes for females and males were collected separately Policy information Maximum of a $1,000 deductible and 20% coinsurance, which is the amount the policy holder pays on medical services once the deductible is met City selection criteria (50 most populous U.S. cities) Source: U.S. Census Bureau, Census 2000, Table 2. Incorporated Places of 100,000 or More, Ranked by Population: 2000 Determination of zip codes for obtaining quotes The U.S. Postal Service (USPS) Web site was used to identify a representative zip code for each city The first standard zip code listed for each city was typically used Five cities on the top-50 list were randomly selected to test that the health insurance quotes were uniform across zip codes of that city. In these five cities, two other random zip codes listed on the USPS site for each city were used to obtain quotes. No variance in health insurance quotes was found within each city Page 3

4 Methodology: (Cont d) Data collection For the majority of the cities on the list, quotes were obtained using which provided data for 47 of the 50 cities All relevant information was provided to the site and quotes immediately obtained Data for Boston, Honolulu & San Juan were gathered using the Massachusetts, Hawaii & Puerto Rico Division of Insurance, respectively Information on the market and cost of plans was accessed both online and through carriers operating in the state or territory In each case, the lowest quoted cost obtained in each city was selected Analysis and assessment While data and rankings for men and women are presented separately, an overall average cost was calculated. The ratio of [30 year-old] females to [30 year-old] males in each city was obtained from the U.S. Census Bureau and applied to the collected data to obtain a weighted average cost for each city The cities were ranked in ascending order of cost of health insurance premium quotes obtained In the event of a tie, the city with the larger population (based on 2000 U.S. Census Bureau data) was given precedence (the higher ranking) Page 4

5 Seven of the Top-10 Cities are in California, where there are Millions of Young Singles in Need of Coverage Jessica, 28-year-old Single Woman from Sacramento, CA: 28-year-old Jessica of Sacramento, CA was uninsured for 4 years. During that time a single mishap cost her a couple of thousand dollars, which she paid for on her own. This was a big financial blow to the part-time student who also works in construction parttime. She didn't have health insurance, because at the time she thought it would be too expensive. This incident proved to her that she really needed health insurance and an online search relieved her fears when she found a health insurance plan for just $39 a month. In addition to paying the low health insurance premium for her plan which has a $1,500 deductible, Jessica is also able to stash a small amount of money into her "just in case" fund. This fund will cover the deductible -- "just in case" an accident or illness occurs that would require her to use her health insurance. California, Ohio and Arizona are the only three states to be represented by cities on the top-10 Most Affordable Cities list If a single, 30-yearold person living in a top-10 city were to give up buying just one latté a day, they could use those savings to purchase health insurance and have money left over Page 5

6 Top Ten Cities for Individuals to Buy Health Insurance Rank City Average Monthly Premium 1 Long Beach, CA $ Sacramento, CA $56.00 All top-10 cities plan premiums are equivalent to less than $2.00 per day The top-10 cities monthly plan prices are within $4.77 of each other 3 Fresno, CA $ San Diego, CA $ Columbus, OH $ San Jose, CA $ San Francisco, CA $ Oakland, CA $ Mesa, AZ $ Tucson, AZ $58.77 Page 6

7 Top 50 Cities Surveyed and Ranked by the Lowest Monthly Premiums Available for Individual Policies 1 Long Beach, CA $ Sacramento, CA $ Fresno, CA $ San Diego, CA $ Columbus, OH $ San Jose, CA $ San Francisco, CA $ Oakland, CA $ Mesa, AZ $ Tucson, AZ $ Omaha, NE $ Los Angeles, CA $ Cleveland, OH $ Phoenix, AZ $ Kansas City, MO $ Virginia Beach, VA $ Detroit, MI $ St. Louis, MO $ Baltimore, MD $ Milwaukee, WI $ Nashville-Davidson, TN $ Colorado Springs, CO $ Memphis, TN $ Philadelphia, PA $ Tulsa, OK $ Atlanta, GA $ Albuquerque, NM $ Denver, CO $ Jacksonville, Fl $ Indianapolis, IN $ Oklahoma City, OK $ Chicago, IL $ Honolulu, HI $ Las Vegas, NV $ Charlotte, NC $ Portland, OR $ El Paso, TX $ Minneapolis, MN $ Austin, TX $ San Antonio, TX $ New Orleans, LA $ Fort Worth, TX $ Washington, DC $ San Juan, PR $ Seattle, WA $ Houston, TX $ Dallas, TX $ Miami, FL $ Boston, MA $ New York, NY $ The first 33 cities, or 66 percent of the cities on the list of the Most Affordable Cities for Individuals to Buy Health Insurance, have premiums of less than $100 per month Boston and New York City are the only cities within the top 50 with statemandated guaranteed issue and community rating laws The average annual Out-of- Pocket Maximum for the plans on the report is $3,286 Page 7

8 Health Insurance Plans are More Affordable when Individuals Choose Higher Annual Deductible Plans Chris, a 29-year-old Single Male from Washington, DC: Chris moved to Washington 18 months ago from the San Francisco area. His new employer offers its employees health insurance benefits, but his contribution to the premium would have been $400 a month. This was more than he wanted to spend, so he went online to look at his options. Determined to pay as little as possible for his coverage but also to use a reputable insurance company, Chris found a plan with a $5,000 deductible and is paying $64 a month for a plan that covers both medical and dental services. Washington, DC ranked 43rd on The Most Affordable Cities for Individuals to Buy Health Insurance. The lowest monthly premium available for a plan with a $1,000 deductible was $132 a month By purchasing a health plan with a higher annual deductible of $5,000, Chris reduced his payment by more than 50% for a monthly premium of $64 Page 8

9 Young Men Aren t Invincible John, 32 year-old Single Male from Austin, TX: John was young, single and uninsured for several years until this Austin resident was hit by a drunk driver. Once convinced that he was invincible and in no need of insurance, John quickly found himself in the hospital, ringing up medical bills that finally totaled $23,000. Back at his job in construction, John is paying off his bill in small increments each month. John's employer does not offer health insurance for its employees, but John now knew he needed to find a way to get health insurance. Once sure that he couldn t afford health insurance, he was surprised to find a plan online for just $90 a month, enabling him to move forward knowing that his financial future was not in someone else s hands. Austin, TX ranked 39 th on the single men s list of The Most Affordable Cities for Individuals to Buy Health Insurance. The lowest monthly premium is $112 a month Page 9

10 Top Ten Cities for Single Men to Buy Health Insurance Rank City Average Monthly Premium Columbus, OH is the #1 most affordable city for health insurance for single men 1 Columbus, OH $ Mesa, AZ $ Tucson, AZ $ Long Beach, CA $ Omaha, NE $ Sacramento, CA $ Fresno, CA $ San Diego, CA $ San Jose, CA $ San Francisco, CA $58.00 Page 10

11 Top 50 Cities Surveyed and Ranked Available Policies by the Lowest Monthly Premium for Single Men 1 Columbus, OH $ Mesa, AZ $ Tucson, AZ $ Long Beach, CA $ Omaha, NE $ Sacramento, CA $ Fresno, CA $ San Diego, CA $ San Jose, CA $ San Francisco, CA $ Oakland, CA $ Cleveland, OH $ Phoenix, AZ $ Kansas City, MO $ Virginia Beach, VA $ Los Angeles, CA $ Detroit, MI $ St. Louis, MO $ Baltimore, MD $ Milwaukee, WI $ Nashville-Davidson, TN $ Colorado Springs, CO $ Philadelphia, PA $ Tulsa, OK $ Atlanta, GA $ Memphis, TN $ Denver, CO $ Albuquerque, NM $ Jacksonville, Fl $ Indianapolis, IN $ Chicago, IL $ Oklahoma City, OK $ Honolulu, HI $ Las Vegas, NV $ New Orleans, LA $ El Paso, TX $ Charlotte, NC $ San Antonio, TX $ Austin, TX $ Fort Worth, TX $ Portland, OR $ Minneapolis, MN $ Houston, TX $ Dallas, TX $ Washington, DC $ Miami, FL $ San Juan, PR $ Seattle, WA $ Boston, MA $ New York, NY $ Young men are one of the largest uninsured groups in the country Page 11

12 Young Single Women Don t Have to Worry Violette, 29 yr-old Single Female from Seattle, WA: Violette is an aspiring artist who currently works several jobs to make ends meet and uses any money left after paying bills to purchase art supplies. Two years ago, Violette paid more than $220 a month (or over $2,460 a year) for a health insurance plan with no annual deductible. The plan was too expensive for her budget, so she dropped her coverage and went without health insurance for two years. Tired of the constant worry that comes with being uninsured, she did an online search for health insurance. She was able to compare health plans and found a variety of plans she could afford. To economize while protecting herself, Violette decided to purchase a plan with a $1,500 annual deductible which reduced her monthly premium by about 75% to $57.00 a month, saving almost $1,956 annually over her previous plan. Seattle, WA ranked 45 th for single women on The Most Affordable Cities for Individuals to Buy Health Insurance. The lowest monthly premium found for a plan with a $1,000 deductible and 20% coinsurance was $143 a month By purchasing a health plan with a $1,500 annual deductible, Violette was able to save $86 each month, by paying a monthly premium of $57 Page 12

13 Top Ten Cities for Single Women to Buy Health Insurance Rank City Average Monthly Premium 1 Long Beach, CA $54.00 Long Beach, CA is the most affordable city for health insurance for 30- year-old single women 2 Sacramento, CA $ Fresno, CA $ San Diego, CA $ San Jose, CA $ San Francisco, CA $ Oakland, CA $ Los Angeles, CA $ Columbus, OH $ Mesa, AZ $64.77 Page 13

14 Top 50 Cities Surveyed and Ranked Available Policies by the Lowest Average Monthly Premium for Single Women 1 Long Beach, CA $ Sacramento, CA $ Fresno, CA $ San Diego, CA $ San Jose, CA $ San Francisco, CA $ Oakland, CA $ Los Angeles, CA $ Columbus, OH $ Mesa, AZ $ Tucson, AZ $ Omaha, NE $ Cleveland, OH $ Phoenix, AZ $ Virginia Beach, VA $ Kansas City, MO $ Detroit, MI $ St. Louis, MO $ Baltimore, MD $ Milwaukee, WI $ Nashville-Davidson, TN $ Colorado Springs, CO $ Memphis, TN $ Philadelphia, PA $ Tulsa, OK $ Albuquerque, NM $ Atlanta, GA $ Denver, CO $ Jacksonville, Fl $ Honolulu, HI $ Indianapolis, IN $ Oklahoma City, OK $ Chicago, IL $ Portland, OR $ Minneapolis, MN $ Charlotte, NC $ Las Vegas, NV $ Washington, DC $ El Paso, TX $ San Juan, PR $ Austin, TX $ San Antonio, TX $ Seattle, WA $ New Orleans, LA $ Fort Worth, TX $ Dallas, TX $ Houston, TX $ Miami, FL $ Boston, MA $ New York, NY $ The premium prices of the plans for men and women were equal in California cities, Honolulu, Portland, Seattle, New York Minneapolis, San Juan, Washington, DC and Boston The city with the largest difference between plan price for men versus women is New Orleans at 35% Page 14