of plans to replace their existing health insurance plans starting July 1st. The plans are divided into two portfolios, one for Health Net’s Individual and Family Plans (IFP) and the other for their California Farm Bureau Plans.Health Net Individual and Family Plans
This family offers 2 sets of benefits, from the mid-range benefit level of the “Value” plans, to the budget benefits of the “Advantage” level. Providing these benefit options and prices should simplify finding a plan that fits anyone’s needs.
Value Plans
These plans offer a good set of benefits including 2 office visits to see a doctor for a $35 copay, 40% coinsurance after you meet the plan deductible, two deductible levels at $4500 and $7500, and a $2500 brand name prescription deductible.
The Value plans provide a unique and expensive hospital care benefit, in that you pay a copay of $500 and then your deductible, and then you pay 40% of the costs (Health Net pays the other 60%) until you reach your out of pocket maximum.
the Value plans are only a good fit for small families in which most of the medical expenses are for a single family member, yet the family wants to have the same set of benefits for all family members. The Value plans do not offer “family” deductibles and max-out-of-pocket limits, each member of the family has their own plan, with their own deductible, etc.. Other than this situation, you will be better off in the Advantage plans outlined below
Advantage Plans
The Advantage plans are slightly different from the Value plans in that they provide 2 office visits for a $40 copay, 50% coinsurance after the deductible, and two deductibles at $3500 and $6500, along with a $2500 brand name prescription deductible that is separate from the plan deductible. The major difference between the Value and Advantage plans is that for care in a hospital, the Advantage plans require you to meet your deductible first and then pay the 50% coinsurance until you reach your maximum out of pocket limit.
These plans are a good fit for individuals and families that want a full set of standard benefits at the lowest price.
California Farm Bureau Plans
California Farm Bureau (CFB) is an organization established over 75 years ago to protect and promote agricultural interests throughout the state. The Farm Bureau offers a set of health insurance plans to the members through Health Net of California. Besides the health insurance plans, membership in the Farm Bureau provides a variety of discounts for travel, rental cars, and theme parks, and others as part of the annual membership. The annual membership cost varies depending upon which county you live in, and can be paid annually or on a monthly basis (in San Diego county the annual cost is $85/year or $8/month).
There are two types of CFB health plans available to members. The “Standard” plans and the “Health Savings Account” (HSA) compatible plans.
Standard Plans
These plans are for individuals and provide 2 office visits for a $50 copay, 0% coinsurance after the deductible (once you reach the deductible Health Net pays 100%), three deductible options of $4000, $6000, and $7500, and a $2500 brand name prescription deductible that is separate from the plan deductible. The Standard plans also offer the ability to get unlimited care at CVS MinuteClinic locations for a $50 copay.
These plans can be a good option for individuals that want a plan that is easy to understand and has a full set of standard benefits at reasonable prices. The $4000 deductible plan looks like a good option for women who are planning to have children (check back later in June to see the full analysis on Best Maternity Insurance Plans For California Couples).
HSA Plans
The CFB HSA plans have historically been some of the best in the marketplace, and these new plans keep that characteristic. The plans are traditional HSA plans that provide preventive services for free, and all other benefits are paid after you reach the plan deductible. The plans have two deductible options at $4500 and $6000.
The nice feature of these HSA plans is that the deductible and the maximum out-of-pocket (OOP) limit are the same number. Once you meet the deductible, you have also met the max OOP and Health Net pays 100% of all additional costs.
The CFB HSA plans are great for healthy people that want to “self insure” and can benefit from the tax savings of the HSA, but want to have a safety net in case something happens.
Health Net Cost Comparisons
These new Health Net health insurance plans are very competitively priced compared to the other carrier’s plans. In fact, these 9 plans are lower priced than any other plan in California right now. For a 30 year old woman in San Diego county, the Health Net Advantage 6500 plan is lowest priced plan at $66/mo, and the next closest competitor is the Anthem Blue Cross SmartSense 6000 StandardRx plan at $112/mo which has similar benefits, or the Anthem Blue Cross CoreGuard 5000 plan at $102 with less benefits than the Advantage plans.
Even adding the $8/mo membership to the CFB plans, makes the HSA 4500 plan cost $92/mo while the next lowest cost HSA plan is the Kaiser %50/5000 HSA plan at $102/mo.
Based upon these price comparisons, I expect Health Net will begin to gain market share from the other carriers over the next 6 months. Price is not be-all-end-all for everything, but if you can get the same kind of benefits at a much lower cost, most people will opt for the lower cost solution. This same transition is happening in the small group health insurance market because of a new set of plans that Health Net introduced in April. It looks like Health Net is planning to become a much bigger player in the California health insurance marketplace.
The new July pricing for all the carriers is available in the SPF Insurance quote engine now, so stop by and see what plan options fit your needs best. If you have any questions at all, please call us and we’ll make sure you get the answers you need.
Other Related Articles:
Anthem Blue Cross July 1st Plan Updates
New Analysis Shows The Best Maternity Insurance In California Is…”
What Is The Best HSA Plan In California?
Blue Shield Of California Introduces New Plans For July 2012