math class time

[dalej]

Our insurance was at 175.00/month for 08. Received a letter that the 09 rate will be 250.00/month.

Question, what percent did our insurance premium increase?

[rfoster]

Dale: Dang near 45 percent increase.

Who is that little girl in the picture with you?:cool:

[Jon Wehrenberg]

42.85714% give or take a bit.

Who insures your coach, the government?

[dalej]

I told the guy 43% and he told me only 30%. I wanted to get the advice of you math majors.

I took 250 divided by 175 = 1.4285... thats where i got 43 percent
I thought that to figure it you would divide 175 by 250 that equaled 70 percent. If I take 250 x .70 = 175
So I wasn't sure what I was doing wrong.

[hobobimmer]

I took 250 divided by 175 = 1.4285... thats where i got 43 percent

I took the increase ($75) and divided it by your starting point, or previous payment ($175). That gives the 42.85714%, like Jon said.

Who would have ever thought three guys from East Tennessee might be able to help someone with a math problem?

eric faires
huntsville, TN

[dale farley]

Dale, You can do it two ways and get the same answer. You could also divide the amount of increase ($900) by the original $2100 and get the same 42.857. Either way, it is more than 30%. A rather significant increase. I do hope this is on your house, not your bus.

[dalej]

This is for our health insurance. The little girl and I took out a new policy a year ago and after a year it went up 42.85714% Wow! I best be looking around again.

[Ray Davis]

So, just to add insult to injury, if you now got a $75/mo decrease (back to original price), then you'd only be getting a 30% reduction.

Their 30% figure came from dividing by the new value, which is wrong. :eek:

$75 is a larger percentage of $175 than it is of $250.


Ray

[jonnie]

Sounds like "new math" to me. Was you agent employed by the Feds at one time?

[truk4u]

It's still Reaalllyyyy cheap from where I'm sitting and it's a 30% increase!;) You'll get different answers from the TN crowd.;)

[dalej]

So does my insurance guy tell me my premium went up only 30% when it really went up 43%. I can see both sides, but which one is really the correct way to figure the actual increase of a premium or anything else that has been going up?

[rickdesilva]

Wow Dale depending on your coverage $250 per mo is pretty reasonable for Husband/Wife coverage (if thats what you have). It costs me more for basic single employee coverage for our group policy Maybe because its NJ there's more people getting a piece of the action. ;)

[tdelorme]

This is for our health insurance. The little girl and I took out a new policy a year ago and after a year it went up 42.85714% Wow! I best be looking around again.


While it's not a pure bait and switch tactic, every health insurance company I have dealt with in the last ten years or so pulls the same stunt. They will quote a reasonable premium for the first year to get the business and then do the 30 to 40% jump the second year. No big claims, just a big premium increase. We had Pacific Life health insurance for our employees for years. Great policy, reasonable premium no huge claims ever. Then they hire that darn whale, get all over TV and the premium doubles. That was six years ago and we've been switching every two years since. The plan I have for employees now is Total Plan Services out of Dallas. Not bad coverage but nothing like we had in years past and sure enough, I saw a letter come in today that I just know is the yearly jump in premium.
And while we're on the subject of health insurance, if you are 65 and have Medicare, whatever you do, DO NOT give up your traditional Medicare coverage. The Medicare Advantage plans that are all the rage these days are a joke. These companies will tell you anything to convince you to switch from traditional Medicare to an Advantage plan. The only advantage is that they are getting rich and you are getting screwed. You would think that folks who have reached Medicare age would have learned over the years that you don't get something for nothing. Medicare Advantage plans do not pay like Medicare does and if an agent of one of these companies tells you otherwise, he/she is either misinformed or a liar.

[Petervs]

You all should not expect any challenging math problem answers from the guys in Tennessee. You see, they run out of digits at 21 so problems like this are impossible for them to solve.

[rfoster]

Cute - Peter, Cute

I hear that Web footed folks can't count that high.

BTW - How many toes do Moles have?

[lewpopp]

Here's where the bait and switch comes into the act.

When I was in retail, at one time I tried to get a 25% profit on beer. The salesman would come in and have a cost of $6 and said that $7.50 would be the retail at 25%. That is only 20%. The answer should always be figured out from the retail so therefore divide the cost by 3 and the retail will be $8.00. Not very many retail merchants knew a simple thing like that. Never let the salesman figure your retails.

Are you bored yet?

[jonnie]

It sounds like your insurance agent is a really krafty salesman or a grade school dropout. Ask him if he can add 2 plus 2 without a calculator and come up with anything close to the correct answer. I second thought he either works for a bank or on Wall Street.

[Tully]

I am an insurance broker. Family run business now in it's 47th year. I my self have 25 years come March 2009.

Our slogan "We Insure It All"....

However, it is not really 100% true.

We do medicare supp.s with Blue Cross. We do "NO" medical insurance. Why?
As mentioned above- first year rates are good, renewals- not so good. We got tired of spinning our wheels having to shop rates at every renewal. The premiums for medical insurance are out of this world. But then again, look at one day stay in the hospital or emergency room and it all makes sense... kind of?

The cost of medical care is nothing short of madness. My mother in-law is a Doctor. She retires next year. The insurance companies beat her up each and every day trying to cut down the amount of money they were obligated to pay her. The insurance companies (if they are large enough) will tell the hospitals just how much they will pay for a procedure. Everyone is wheeling and dealing on dollars. The policy holder / client however has no power to deal at all. It really is a game of legal gambling at best.

The insurance companies on top- The hospitals on the bottom - The consumer in the middle getting smashed to bits. Same old song and dance.

Tully

[truk4u]

Dale,

I'm going to make you feel better! When Nancy and I turned 60, our premiums jumped 46% because of age. We're fairly healthy without any major problems and surgeries. This year, our premium is $1,530.00 monthly and that is Group Insurance with an 80/20 plan with a 2,000.00 deductible each. We will not be able to sustain the increases as we get older and are 3 years away from Medicare. For millions of americans our age, the gap between private health insurance from age 60 to 65 (medicare age) is a disaster waiting to happen. It's our biggest fear and concern.

What's wrong with the system? Nance had to have ankle surgery in Nov due to an accident. It was out-patient and the procedure was 45 minutes. The Hospital bill came in at $47,000.00! They charged 12,000.00 for some screws and a plate and our Doctor said the cost should have been 800.00.

Sorry to get off on a rant, but until this health insurance crisis affects you, many are unaware of this broken greedy system that will destroy many senior citizens and turn their golden years to disaster.:mad:

[dalej]

That is exactly what we are looking at. We are both 51 and need to be covered for at least 14 more years, providing this is the way it still works then. We are still in good health and have a 5000 deductible with 50/50 of the next 5000 if I'm remembering correctly.

We are just trying to get setup with a good insurer for the final 14 years.

[JIM CHALOUPKA]

Some other things I have found with medical ins, is that if you are or plan on being out of your state of residence/domicile, you need to find a company with a plan that will cover you out of your home state, also once you are labeled with a medical condition it is much more difficult to "shop" the ins co's every couple years for better rates.

JIM

[BrianE]

Roger,

I'll thank you not to bring a simple and well meaning mole down to the level of a crazy Dutch engineer. We do have our standards. Incidentally, it's rumored that Peter has been known to commit murder on my near and dear cousin, the Raccoon (of Daniel Boone fame). This should be of significant importance to a good old Southern boy.

[JIM KELLER]

Dale, I think you should move this topic to a Thread of its own for future discussions. Like Tom said, " Its our biggest fear and concern. " Others may like to join in and perhaps some usefull information may help someone. Karen and I have a policy on our companies Group Program at 592.00 per month and we are both 60.

[Jon Wehrenberg]

Getting old is not for sissies.

We had to buy our own insurance and with each year the hosing we got for premiums got worse and worse. I was never so glad to get Medicare.

I want to thank all of you for paying my premiums now. I pay a little, but all of you youngsters that report income are covering me and Di and for that we thank you.

BTW, we had a $10,000 deductible and the last year we had it, just to cover me they wanted annual premiums of $9,000 and we had never collected a penny of health insurance in our entire married life except when our daughter was born.

[Larry W]

We both have medicare now. Our regert is that if we had set aside all the $ we have paid for insurance for the last 40 years instead of buying insurance maybe we could have a paid for brand new bus. We have had one claim which was 20 years ago. My mother passed away at 95, 3 years ago and the only insurance she ever had was medicare. Of course the medical deal has grown leaps and bounds. I think mostly to everyone having insurance

[Loc]

Jon,

You are welcome for covering the medicare. But since I work for the government you are really paying me to pay your insurance premium. You cannot escape!

Loc

[garyde]

There is not much good to say about medical insurance. When I was in my mid 20's I remeber passing on medical Insurance. Now, I don't have that option. Medical Insurance is as much, if not more , to protect your lifes savings and holdings as it is to pay for medical procedures. I would be wiped out if my wife or I needed to go to the hospital.
Tully's right about the insurance companies, some years its Blue Cross, some years its Health Net, they all keep playing with the numbers, and they all are increasing yearly.
In my Company we do a 50/50 on employees only. We also have what is known as a Cafeteria Plan which allows everyone to pay med. insurance with your gross earnings, not your net earnings which saves about 30 % annually on that taxable income.
Now if you really want to get everyone POed, lets talk about Social Security!

[sawdust_128]

This equation is is not the computed on the delta between the old rate and the new rate.

First, they are stating that they want to bill at a rate increased by +30%of the old rate.
To accomplish this, They assume that the old rate was 70% of what the new rate will be.

Thus, working in decimal equivalents:

175/((100 - 30)/100) = 250

partial solution:

175/ (1 - 0.3) = 250

or

175/ (.7) = 250

This is not dissimilar to the slight of hand used by businesses in the aspect of retail pricing when they are operating on margin and selling on markup.

Essentially, by their definition, it is a 30% increase.