GuideStone asks all Personal Plans applicants to supply an Evidence of Good Health Application so that we are able to maintain the plan’s financial stability. In a group plan, all or most employees are required to enroll, and insurance costs are averaged for the entire group. However, participation in Personal Plans is voluntary, so each participant is evaluated for coverage independently.
Voluntary insurance plans like GuideStone’s Personal Plans tend to attract a higher ratio of individuals with more complex health problems than a typical group insurance plan. As more unhealthy participants enroll in a voluntary plan, more claims are submitted — which raises costs. This in turn leads to an increase in rates for all plan participants, thus causing healthy individuals to drop out of the plan and making the plan unattractive to healthy individuals who choose not to enroll in the plan. These circumstances would then lead to a situation in which rates must continue to rise to pay the claims of the less healthy individuals. The purpose of evidence of good health is to prevent this cycle from causing the plan to be financially responsible for a higher ratio of less healthy individuals, which would lead to financial instability.
If you have questions or need additional assistance, you may reach a customer solutions specialist by calling 1-844-INS-GUIDE (1-844-467-4843).