subject: Increase Rates for Travel Health Insurance Policies [print this page] Increase Rates for Travel Health Insurance Policies
Older Canadian snowbirds are caught in a difficult choice when companies offer travel health insurance. Two options were given by the insurance companies, it is either to pay drastically higher rates or accept new rules on where to go for emergency treatment while out of Canada. For one popular plan, travel health insurance premiums for older retirees increased by as much as $1000 per person. Steep rate hikes at many conventional insurers may be the result of such move by the insurance industry.
There barely are people going for a vacation according to the elderly male who lives in a condominium in Ottawa?s west end for even the tenants in their building do not go for a trip anymore. The reason for this is because of the high rates, according to him. An increase of 80 percent was announced by the travel health insurance policy that they bought last year. The six month policy last year used to be $1,350 per person in the 76 age category but now, it will be $2,425 per person.
An increase of 22 percent will be this same policy costing $1,425 for people between 65 and 75 years old. The marketing director of one travel agency says that skimming of the younger and healthier clients by competitors last year left some insurance companies with a disproportionate number of older clients with medical conditions, resulting in a heavy number of claims. They?ve reduced their rates this year for clients under 55 and raised them drastically for older clients who want coverage for up to 180 days.
For sure there will be a way around the high costs of travel insurance for older, longer stay clients. The new policy that the company is working on will be structured based on the managed care in the U.S. Pre-arranged pricing agreements with treatment hospitals and medical clinics by policy holders are prohibited ? this is a way to keep costs down. With a similar managed care plan directed at longer term stays by older Canadians is being placed together ? this is another major player in the industry although officials in that country wouldn?t estimate its savings potential. The company, which last year priced itself out of the market for many older Canadians, isn't increasing its rates again this year. For people who are aged 59 to 69, price will be $1,244 and for those above 70, it will be $2,559 for a 180 day stay.
Most people who are waiting for the help of the Canadian snowbird association might be just disappointed for this association may not be able do what they did last year which is to weaken competitors by hundreds of dollars. Rates will definitely be nowhere near $580 per person or 5 per couple which almost caused panic buying last year, based on the officials of association?s travel insurance policy. It would be below $1,000 per person for those between 65 and 75 covering up to 182 days is what the marketing director for the association?s travel insurance policy wants. Meanwhile, there are bargains around for those who can meet the age and health qualifications of various policies. But also, there's a catch here.
Offered by several companies will be early bird specials or temporary rates The charge by the new company which has been recently established is priced at $510 for members 61 to 65 and $680 for those 66 to 75 for a 180 day plan. Those aging beyond 75 and who want to stay for 180 days would have to pay as much as $10 per day or $1,800.
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