July 6, 2011


Our guest asks:

Why is Celtic Insurance so cheap? Is it connected to a Medicaid program?

OnlineAdviser responds:

The parent company Centene Corporation runs Medicaid plans in some states but Celtic Insurance Company is a private commercial health insurance company. While it is possible that the experience and exposure in the low-budget Medicaid market helps to keep rates low, we are not aware of specific examples of this.

The only fundamental way for an insurance company to keep rates low are: 1) to incur fewer claims, 2) to pay providers less, and 3) to incur lower expenses. Celtic Insurance Company, like other health insurers, employes strategies designed to keep rates affordable. By allowing healthy applicants to enroll, utilizing preferred provider discounts and reducting payments to agents, Celtic has made progress in each of these areas over the past year.

There is no reason to say that Celtic is dramatically less expensive on a widescale basis, but variations in rates based on local factros may make the rates more favorable in your area. See www.celticenrollment.com for current rates and plans available.

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