Proposition 8 and Group Health Insurance Changes in California

For a long time now group health insurance applications for businesses in California have had a section regarding who was eligible for benefits as domestic partners, and same sex marriages. In typical insurance company fashion, most insurers have passed the buck to the customer or small business to decide. However, now that there is more legal decisions regarding same sex marriage and domestic partnerships, insurance companies have started to make changes in their insurance forms. For example, on the Blue Cross Small Group Employer application, which is newly rewritten in 2008 they still offer employers a choice to cover domestic partnerships, but no longer are they able to be same sex domestic partnerships. Question  section 7g  in the employer application now asks:

G. Do you wish to offer coverage for opposite sex domestic partners* under the age of 62 years?  Yes  No

Then just below the astrix is clarified:

* Anthem Blue Cross and/or Anthem Blue Cross Life and Health Insurance Company complies with State law requiring it to cover spouses and qualified registered domestic partners including dependents to the same extent and subject to the same terms and conditions as a spouse. To be an eligible domestic partner one must be a domestic partner registered under a valid Declaration of Domestic Partnership filed with the California Secretary of State, or an equivalent document in accordance with the laws of another jurisdiction recognizing the creation of domestic partnership.

The new Anthem guidelines seem to only apply to opposite sex domestic partnerships as opposed to same sex partnerships. This is a change in the wording since Anthem took over Blue Cross of California from Wellpoint earlier this year in 2008.  The old Wellpoint employer application left it up to the employer to say if they chose to offer coverage to domestic partners, same sex or otherwise. Obviously due to recent changes in state law and the state constitution with Proposition 8, and perhaps a change in company policy they decided to make some adjustments.  

It is interesting to note how other insurers are handling this political hot button and civil rights verses religious issue. Aetna for example assumes domestic partnerships to be covered the same as spouse, children,  or other dependant coverage,  and Aetna does not ask about gender as one of the requirements to qualify as a domestic partnership and have the domestic partner covered by the group health insurance benefits. Here is Aetna’s domestic partnership questionaire (pdf)

Overall it is interesting to note the change in insurance paperwork as we as a culture decide what is and what is not a marriage.

There are several factors to consider when shopping for health insurance quotes online. Like not putting your information into lead generation affiliate web sites!  Read more below.

Rule #1 - Avoid Affiliate Sites: When shopping online for health insurance quotes there are several factors to consider. Most sites out there are affliate sites that do not actually provide any service to you directly. Instead they sell your personal information to several agents or brokers (some times as many as 30!) When they turn around and sell your information to someone else, you have lost control over your personal information often times including date of birth. You don’t want that!

For example, when people search in Google for “California Health Insurance Quotes” the first listings that come up are generally affiliates that make money by selling your information to insurance agents. And not just one agent, but sometimes as many as 30 agents. The last thing you want is 30 insurance agents calling you to try and give you a quote, and calling you back 3-4 times as well. That can get very very frustrating.

Rule #2 - Check the Site for a Phone Number: The best way to make sure that doesn’t happen to you is to use a site where the phone number is clearly displayed. Generally that means they would be willing to take your call and hear from you directly if you prefer. You should avoid sites that do not have a prominately displayed telephone number on them.

Rule #3- Deal with a Licensed Agent It is best to deal with a licensed professional insurance agent who has taken the time to develop an online web presence as well as having an office in the state you are dealing with.

Rule #4 - Check their License Status: The next suggestion is to check the department of insurance for your state and make sure the person you are talking to is a licensed insurance agent. For example in California, you can visit the California Department of Insurance. There are many people out there pushing health discount card plans as “Guaranteed issue” that are not licensed insurance agents. If they are unlicensed, you may want to consider reporting them to you states department of insurance as well.

Rule # 5 - Get It In Writing: Finally you should insist on seeing the plan in writing before you apply. It doesnt have to kill a tree, it can be a pdf, or published information on the website that explains the plan benefits, but it is a good idea to see that what the agent is telling you is also in black and white. Just because the agent says “You are covered” doesn’t mean you really are going to be when claim time comes.

Rule #6 - The Price is the Price: Many people do not realize the prices for health insurance are fixed by the insurance company. So if you choose to try to buy direct (and run into hassels with the applicaiton process) or decude to buy from a licensed insurance agent - the price you pay is the same for the same plan.

Rule #7 Get Educated: Lastly educate yourself about the difference between HMO, PPO, and HSA style plans. And become familiar with the terminology like co-pay, deductible, co-insurance, out of pocket maximum, and the like. Use the agent you are speaking to as a resource, but if she cannot explain it to you clearly; its time to find a different insurance agent.

Thank you for taking the time to listen to an old insurance agent who has had to help too many people out of bad plans that cost too much and didn’t cover what was necessary. The internet is a wonderful tool that allows people to find what they need quickly and easily, but…

To contact me, you can call me at 1-877-758-7587, or log onto my website http://www.healthinsuranceplus.com or a “California Health Insurance Quote” I look forward to hearing from you.