Choosing insurance in the worst year ever

Hey there,

In a way, every year is the worst year yet to buy insurance, because rates go up every year. So each year is always cruddier than any year before.

But this year is especially awful. The rate hikes on employer-based plans are the highest in 15 years, and on the Obamacare side it’s even worse. Price hikes there are even steeper, and — barring an extremely-unlikely last-minute fix from Congress — subsidies will be less generous.

We can’t save you from any of that. But we can help you avoid the worst options — including outright scams.

That’s because we’ve been reporting on all this stuff for years. You’ll get a taste of what we’ve learned in today’s new podcast episode, and we’ll give you a guide here.

But first:

Yes, it’s still the BEST time to support our work

Because

(a) We’ve got so much work cut out for us in 2026

and

(b) Everything you give us in November is matched two-for-one.

So please help us take advantage of this incredible opportunity. Go ahead, hit “donate” now — we’ll be right here when you get back.

Thank you so much! You are setting us up for huge success. OK, on to the less-fun stuff.

Let’s start with the “avoiding scams” thing

Basically, the same bad news as always: If a deal sounds too good to be true, it probably is.

And because so many people are, understandably, looking for a better deal than what you can find on healthcare.gov and state marketplaces… There are a lot of sharks out there ready to offer “alternatives.”

You type “buy health insurance” into Google, or follow links from social media, and those sharks will come knocking (and calling, and emailing…).

I should say: The most common too-good-to-be-true offerings are legitimate, legal-to-sell products, not outright theft.

But they’re often pitched by folks looking for a quick commission — eager to pitch their “benefits” (lower prices) and gloss over or skip their significant drawbacks (like, um, not actually paying for health care when you need it).

Those products include:

• “Short-term” plans, which the Trump administration is encouraging. They can exclude care related to pre-existing conditions … and a lot else. This Washington Post story (gift link) opens with the tales of three folks who wound up on the hook for amounts ranging from $82,000 to $116,000 — and quotes an insurance broker saying, “I couldn’t sleep at night if I sold that to somebody.”
• “Health care sharing ministries,” which don’t actually promise to cover the cost of your medical care — and aren’t overseen by insurance regulators. For a full rundown on the problems here, John Oliver’s 2021 episode on them is your most comprehensive and most entertaining bet.
• More exotic products, like the ones we learned about from two Bloomberg reporters in this recent podcast episode.

Basically: Obamacare really is way too expensive and has a lot of problems. But the alternatives are worse. Anybody pitching one as a panacea… Well, I wouldn’t trust them.

Finding your least-worst option

This is no fun. And it’s hard. As we discussed in one of our first-ever podcast episodes, it’s something very smart people dread.

But as we confirmed in doing our own insurance shopping — and as you’ll hear in today’s podcast episode — doing it really can save you thousands of dollars.

We’ve covered the details in earlier newsletters and brought them all together in this starter pack on our website.

Here’s a quick digest of the advice you’ll find there:

• Look past the monthly premium: If you actually need health care, the plan that looks the “cheapest” could cost you a ton of extra money.
• Find the documents you need: The summary of benefits and coverage, and the drug formulary are the two biggies.
• Learn the awful vocabulary: Deductible, coinsurance, out-of-pocket max, out-of-network, pricing tiers.

… and then, for any plan you’re considering, start doing that math: What’ll you really end up paying out of pocket for medical care? We’ve outlined the process here. It sucks.

Oh, also this: Get help, anywhere you can. At work, hit up HR: Does somebody there have office hours?

If you’re looking at Obamacare plans, see if you can find a navigator: These are trained folks who can help you find the best plan. They don’t work on commission, so their only incentive is to get you the best coverage. You hear Emily getting help from one in today’s episode.

The bad news: As we’ve discussed, the federal government slashed funding for navigators this year. But a lot of states fund their own program. See what you can find.

And if navigators aren’t available: Ask friends and family to recommend a good insurance broker. My family works with a great one.

Finally, one more time: We’ve compiled our best advice into this starter pack on our website.

I wish we could make this easier or less frustrating. Or make the alternatives less crappy.

But as we learned by applying these lessons ourselves: The difference between the worst and the least-worst option could be huge.

And…

Who’s the best? You.

You’ve been supporting our work — we see you!

And if you’ve been meaning to, here’s that donation button one more time:

Thank you so much!!

Catch you next week,

— Dan