Health Insurance Risk Pools

The health insurance rates for any closed risk pool generally tend
to be higher because the pool of insured's is "closed" for business.
Now having said that, the good news on the surface is that when June 1,
2010, comes along and the old Medicare supplements go out and the new
comes in, and two closed risk pools are created, insurance companies
are going to reset rates because of the fierce competition that will
result for health insurance customers. Translation: there will be lower
rates for a while to attract customers.

So there may be some terrific deals to be had when this happens. The
question will be how long the rate wars will continue and what will be
the outcome later. It's hard to guesstimate what the Medicare
supplement insurance market will do in terms of costs for premiums.

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