Ever score on an insurance company?

[AllInForISU]

“Hide profits?” It may or may not be a good business decision, but I believe this strategy is called “marketing.”

Exactly.

I will say, and this is slightly off topic, but the marketing scheme I have never understood is Mid-American sponsoring the field at JTS. That’s literally the people who have Mid-Am just funding the field as there is not a competitive market for energy as far as the consumer is concerned. You don’t get to choose your provider unfortunately.

 

[Cyched]

It is called marketing... and based on how much money State Farm lost last year, they might want to tone down paying the athletes until the ship gets righted.

Companies should do marketing, but I was amused at all the commercials with big stars.

Pay the celebrities serious coin for commercials. Then turn around and deny coverage to potential customers who saw your commercials.

 

[FancyRex]

I have 2.

1. Car insurance. I was driving home from work and light turns green, ford super duty pulling a horse trailer runs a red and T-bones me. I was EXTREMELY lucky to walk away with no injuries. Completely totaled the car. Insurance actually came back with enough money to get me into a new car with only around $150-200/mo monthly payments. This was an OLD honda CRV that was totaled. With existing hail damage. I was shocked they gave me much of anything.

2. Home Insurance. Moon roof on the patio in our first house was blown off during a storm. Previous owner had put some ceiling over the moon roof so it was basically not functional. But the water buildup from the storm through the new opening in the roof had destroyed the newly installed ceiling in the patio. Absolutely ruined everything out there. Insurance adjuster came out. Gave us like $5K to repair it, minus the deductible. Did some DIY and repaired it myself for a couple hundred. Got the moon roof replaced and properly installed this time, again DIY. In total I think we pocketed $2K before we sold the house and moved on with our lives.

 

[CascadeClone]

Exactly.

I will say, and this is slightly off topic, but the marketing scheme I have never understood is Mid-American sponsoring the field at JTS. That’s literally the people who have Mid-Am just funding the field as there is not a competitive market for energy as far as the consumer is concerned. You don’t get to choose your provider unfortunately.

So here is what I think is the answer:

1. Utilities get basically an "allowed" profit of x% on their costs. So higher costs => higher profits in $$ at the same %. Would you rather make 5% on $10M or $20M in sales?

2. By sponsoring certain things, you get some influence with people who like those things. E.g. maybe some of the Iowa Utility board who make decisions about your business are ISU grads, and they think by sponsoring ISU things they will start from a happier place in board decision making.

 

[Al_4_State]

Insurance always wins. Anyone who thinks they really got over on the insurance company is similar to the regular gambler who hits the jackpot once a year and thinks they're making money off the casino.

 

[FancyRex]

Insurance always wins. Anyone who thinks they really got over on the insurance company is similar to the regular gambler who hits the jackpot once a year and thinks they're making money off the casino.

Oh trust me. I have gotten dicked by insurance significantly more times than I have been allowed a measly win.

Ask me how much my medical costs on a monthly basis and how much we pay for my wifes medication out of pocket to meed the deductible they set in January every. single. year.

 

[cytor]

Medical Insurance is definitely a different kind of animal that needs to get fixed. It's messed up on many levels.

 

[nrg4isu]

“Hide profits?” It may or may not be a good business decision, but I believe this strategy is called “marketing.”

Here's an example I have direct knowledge of. During covid, all of a sudden people stopped going to the doctor. People stopped using their insurance. A smaller insurer (not for profit) had a massive profit because premiums far outweighed disbursements. To avoid problems, they doubled their advertising expenses and hired consulting companies to "improve software" that was basically aimless.

Sure, you can call it "marketing" or "good business decisions" if you want to. I'm going to call it spending money that is meant to be pooled to share risk.

 

[nrg4isu]

Insurance is the most regulated industry in the country.

They can't even change prices without getting government approval and that's why companies are fleeing certain states.

And yet somehow they can be one of the biggest spenders on advertising? How does that make any sense at all? Progressive, State Farm, Nationwide, All State, Liberty, etc. etc. really? Is it competition for your business or is it something else?

 

[FancyRex]

Medical Insurance is definitely a different kind of animal that needs to get fixed. It's messed up on many levels.

preach.

 

[FallOf81]

Thread title is like having sex with a rich cougar.

 

[RotatingColumn]

I pay $14,400 a year out of pocket for family health insurance.

I went to the hospital but didn't meet my deductible so I had to pay most of that bill as well.

Am I doing this right?

 

[Cyched]

I pay $14,400 a year out of pocket for family health insurance.

I went to the hospital but didn't meet my deductible so I had to pay most of that bill as well.

Am I doing this right?

Assuming you qualify for an HSA with that high of a deductible?

 

[cycloner29]

I pay $14,400 a year out of pocket for family health insurance.

I went to the hospital but didn't meet my deductible so I had to pay most of that bill as well.

Am I doing this right?

I used to pay over $1,300/month for 3 of us. Small company less than 25 people where the owner didn't have to offer insurance. Company picked up 80% of my mothly cost. Realized after my wife got a full time job with a national company and her $250/month health insurance rate (for three), that I should have had more taken out of my check each month as we got dinged tax wise the following year.

 

[cytor]

I used to pay over $1,300/month for 3 of us. Small company less than 25 people where the owner didn't have to offer insurance. Company picked up 80% of my mothly cost. Realized after my wife got a full time job with a national company and her $250/month health insurance rate (for three), that I should have had more taken out of my check each month as we got dinged tax wise the following year.

Was this back in the 90s? Holy crap your insurance is cheap.

 

[FancyRex]

Jesus guys, Way to make me feel so much better about my health insurance.

I'm out about $5K every year between premiums and the fact that we hit our deductible every year.

 

[RotatingColumn]

Jesus guys, Way to make me feel so much better about my health insurance.

I'm out about $5K every year between premiums and the fact that we hit our deductible every year.

You're welcome. Glad I could help.

 

[FancyRex]

You're welcome. Glad I could help.

I'll chalk it up to an advantage of working for a Fortune 500.

The disadvantages? Im too lazy to type them all out.

 

[nrg4isu]

Jesus guys, Way to make me feel so much better about my health insurance.

I'm out about $5K every year between premiums and the fact that we hit our deductible every year.

Comparatively that's fantastic insurance. My wife works for Mayo Clinic which is known as one of the best health care facilities in the world and our insurance is much worse than that (family of 4).

 

[CascadeClone]

I used to pay over $1,300/month for 3 of us. Small company less than 25 people where the owner didn't have to offer insurance. Company picked up 80% of my mothly cost. Realized after my wife got a full time job with a national company and her $250/month health insurance rate (for three), that I should have had more taken out of my check each month as we got dinged tax wise the following year.

$1300 per month is appx the ENTIRE cost for BC/BS PPO monthly premiums, for two 40yo and a kid. Are you sure the employer was paying any of that?

We have about 20 people and we pickup 80% for the PPO plan, so the monthly for our employees is like $250.