Precedent Launches Revolutionary Individual Health Insurance Plans In Texas
A new era in health insurance dawned today in Texas, promising affordable individual health insurance for the estimated three million uninsured young, healthy adults in the state.
With the launch of the Precedent | Remix individual health insurance products at www.precedent.com, the health insurance industry has moved to an online retail model, just as so many other products -- such as auto insurance -- have done successfully in the past few years.
"Precedent is offering Texans a ground-breaking suite of individual health plans that meet the specific needs of the young and healthy, especially the uninsured," said Mike Grandstaff, Precedent's CEO. "We are offering very affordable coverage with the built-in flexibility to increase coverage levels through our 'Coverage on Demand' model, which is truly unique to the industry."
Coverage on Demand allows individuals to purchase a highly affordable lower level of coverage, with the guaranteed ability to increase their level of coverage within a plan year to cover any unanticipated illness or accident, up to $5 million, even after incurring such expenses.
U.S. Census Bureau data show that nearly 50 million Americans were uninsured in 2005, with more than 5.5 million uninsured in Texas. The Lone Star State ranks an unenviable first in the country in the percentage of uninsured residents at 25 percent.
"Everyone deserves affordable health insurance. What we are saying is don't buy more insurance than you need," said Grandstaff. "With Precedent, you can lock in access to additional coverage if you need it -- even after the fact -- with no questions asked. That's true peace of mind, both for young adults and their parents, who probably feel that they're the ones who are on the hook if something unexpected happens."
With monthly premiums that average around $100 per month for healthy, young individuals, Precedent | REMIX health insurance plans are highly affordable. The Coverage on Demand products include "Tempo", a zero deductible plan that pays 60% of in-network eligible medical expenses; "Rhythm", with a $250 deductible that pays 70%; and "Groove", a $500 deductible plan that pays 80%. (All plans pay 60% of prescription drug costs and provide an annual wellness benefit of $400, in both cases waiving any deductibles). Maximum paid claims at the initial level are $1000 for Tempo, $2,500 for Rhythm and $5,000 for Groove. But the unique twist to these plans is that additional coverage up to $5 million is guaranteed, at 100% in network, in the event of an unforeseen contingency such as a traffic accident or appendectomy, even after the need arises.
"This approach of sharing the risk of unanticipated claims, rather than simply sharing the cost up front, is completely new to the U.S. health insurance market," said Tia Goss Sawhney, Precedent's Chief Strategy Officer. "It's one of those innovative ideas that leaves you wondering why no one thought of it before. The policyholder gets something for his or her money at a lower monthly premium, with remarkably good odds of never needing more coverage. And they have guaranteed access to additional coverage if needed. That is a tremendous incentive to be a smart consumer and buy individual health insurance the easy and affordable way through Precedent."
"The insurance industry has to become more retail focused," said Grandstaff. "On the heels of virtually every other business, it's time for innovative health insurance products designed especially for the young adult sector of the population, with a marketing message specific to them. It's also time for the health insurance industry to deliver the instantaneous sales experience that this segment of the market craves."
Because Precedent's business is conducted online, and through toll-free access to licensed sales representatives at 1-8-PRECEDENT (1-877-323-3368), rather than through sales agents, the company will also be launching a blog authored by Grandstaff. The blog is designed to help educate the public about the role of health insurance consumerism within the online and social media space.