Premiums help pay for services
The premium you pay helps cover the cost of services you receive. A portion of your premium also covers the costs for other people in the same pool of coverage as you have. Spreading costs among all members protects everyone on the plan from absorbing too much of the cost of services when highly expensive services are required.
You want your health insurance dollars to be spent on health care services. Security Health Plan uses a small portion of your premium for administrative expenses. New laws require health insurance companies to spend the vast percentage of your premium directly on health care services and activities to improve members’ health care quality.
Even before this law was in place, Security Health Plan was well above the national average on this measure. We spend very little on administrative expenses such as employee salaries, advertising and taxes. As a not-for-profit health plan, our focus has always been to give you the best value for your health insurance premiums, and we have always exceeded the government’s requirements.