LifeWise Health Plan Delivers Solutions for People Without Health Coverage
58% of New Individual Members were Previously Uninsured
MOUNTLAKE TERRACE (April 28, 2005) - - Innovative benefit plan designs for individuals and families with difficulty affording more traditional health plans are also improving access to health coverage for the uninsured, based on the experience of LifeWise Health Plan of Washington.
In the first quarter of 2005, the company enrolled more than 12,458 new individual members — a 79 percent increase over first quarter 2004. In the first quarter of 2005, 58 percent of those new enrollees reported they had been without health coverage for at least two months at the time they applied. This is up from 42 percent of new members in the first quarter of 2004.
Uninsured consumers are responding to new benefit-design options launched in 2004 by LifeWise Health Plan of Washington.
In April 2004, the company rolled out a range of high-deductible individual plans coupled with tax-advantaged Health Savings Accounts (HSAs). More than half (51%) of new members buying HSA plans in the first quarter of 2005 were previously uninsured.
In October 2004, LifeWise launched its Essentials™ family of products with a variety of different deductibles, member cost-sharing, and first-dollar coverage options that include cancer screening in some plans, and multiple office visits in others. Through March 2005, 61 percent of new Essentials members were previously uninsured.
“We’re seeing a marked gain in new individual members, and it is clear that these new members see these plans as successful alternatives to going without health coverage,” said Gubby Barlow, Chairman of LifeWise Health Plan of Washington. “By offering a diversity of affordable choices, we’re clearly reaching people we couldn’t reach before.”
LifeWise of Washington individual membership grew by 29 percent in 2004, from 49,000 to 67,000 — “in large part by creating better access to affordable health coverage for people without insurance,” Barlow said. “That’s clearly good for our members, good for LifeWise, and good for physicians and hospitals because it helps reduce the amount of uncompensated care.”
Essentials 25™ is characterized by very low monthly premiums (roughly $50 per month for a member in their 20’s), and deductibles of $1,500 or $2,500 with 25 percent co-insurance. Unlike typical catastrophic plans, Essentials 25 also covers three office visits per year, as well as cancer and cholesterol screenings.
“For years, consumers have asked for a plan that protects against catastrophic risk, while providing some meaningful up-front benefits at a price they can afford,” said John Mychalishyn, Director of Consumer Sales and Marketing for LifeWise Health Plan of Washington.
Another Essentials product, called Essentials 50™, offers deductibles from $500 to $2,000, with 50 percent coinsurance and out-of-pocket maximums (including deductible) from $2,000 to $4,000. All Essentials 50 plans waive the deductible for cancer screenings, and maternity care is available with the lower-deductible options.
“Interest in these products is clear,” said Fred Green of GreenFinancial.com in Kirkland, WA. “People are attracted by the significantly lower premium costs and the needed protection for catastrophic health problems. These plans are popular with the self employed — real estate agents, contractors, mechanics, architects, and more. Economically, it works for many people,” Green said.
“The Essentials 25 plan also is being selected by employees who are finding the group premiums they are required to pay for their families are too expensive. It can be the difference of $700 to $800 a month to cover four dependents on a company plan, or $190 with Essentials 25,” Green said.
“One size does not fit all, and a diversity of benefit options can appeal to a wide variety of people,” noted Sheri Ferguson, who heads up the individual insurance department for The Meacham Group in Kirkland, Washington. Ferguson observes that the Essentials 25 plan has special appeal for people in their twenties “who think they don’t need insurance, and will live forever.” In many cases, Ferguson said, parents are behind the choice — and are paying the premiums after their children are no longer eligible for dependent coverage.
John Stupey, owner of the Stupey Agency in Everett, Washington, says the Essentials 25 design appeals to people who can’t afford to go unprotected. “It’s also appealing to people who have either lost coverage at work, or whose employer coverage doesn’t cover spouses or children,” he said. “The real key is being able to see the doctor a few times. That’s very appealing in a catastrophic plan. The approach allows some leeway for people to protect themselves. The bottom line is that you don’t have to hang on to an illness until you’re really sick.”
For more information: http://www.lifewisewa.com/visitors/product_info/about.asp
LifeWise Health Plan of Washington is a member of a family of companies headquartered in Washington state, with operations in Mountlake Terrace and Spokane, Washington; Portland and Bend, Oregon; Anchorage, Alaska; and Scottsdale, Arizona. LifeWise and its affiliates employ about 3,000 people and provide health-care coverage and related services to 1.5 million subscribers and their families
CONTACT:
Scott Forslund
Communications Director
(425) 918-5070 office
(425) 280-1653 cell
Chris Jarvis
Communications Manager
(425) 918-3368 office
(206) 714-4010 cell