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Asking anonymously for privacy.

I have had both basic and extended health insurance at company "A", which is now a sub-brand of company "B".

Today, I was called by someone identifying as from company B. They started by thanking me for my fidelity, since I've been with them for my entire life, and then asking me if I wanted to switch my basic coverage from company A to company B, to save a small amount of money. According to them, there would be "no difference" for me, only slightly lower fees.

Why would they do this?

I think their claim sounds believable, since this is the law-mandated basic coverage. On the other hand, I fail to see what's in it for them. It wouldn't be even to simplify things administratively, as it's probably simpler for them to handle both the basic and extended coverage under the same brand.

I'm very wary of touching my health insurance, because I have several lifelong conditions requiring an expensive treatment; the treatment cost alone (covered by the basic, law-mandated plan) barely lets them break even on my fees, before any other medical expenses come into account.

Is this a backhanded trick that will somehow help them make my case more profitable for them? Or are they just afraid I'll switch to a less expensive provider for the basic coverage?

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  • Is the coverage identical for the policies at both companies? Is there a secondary source that can verify this? For example, if this is Medicare, there are lots of resources available. – Bob Baerker Oct 14 '20 at 12:56
  • @BobBaerker it's in Switzerland; basic coverage is provided by private companies, but is mandatory for residents, insurance companies cannot refuse to insure you, and the conditions and price models are set by the cantonal authorities. There is a little variation between companies but it's generally at most 10%. Then you have a free choice of complimentary insurance with various rates and coverages, that you can get from the same or a different company, but here they were only talking about the basic coverage. – user103276 Oct 14 '20 at 14:24
  • My bad, I missed the Switzerland tag. Ask your company to provide a side by side comparison of the two policies and where there are differences, determine if any changes adversely affect you and to what degree. If they are minor or non existent then the premium savings might be worth it. IMHO, insurance companies do not offer you premium savings out of the goodness of their heart. There's usually something in it for them. – Bob Baerker Oct 14 '20 at 14:30
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    There are legitimate reasons why they might want to make such an offer: goodwill (they think you'll appreciate the offer and stick with them longer); good PR (word gets out that they're doing this & they get more customers); business reorganization (maybe they're planning on phasing out company A & want to move customers to B because they can run the business more cheaply). – Kryten Oct 14 '20 at 15:01
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    You say "someone identifying as from company B." Are you in doubt about this? If so, you should call them to verify the offer. – Not_Einstein Oct 14 '20 at 17:21
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Is the health insurance market competitive where you are, i.e., are there several insurers with rates at or below what you're paying? Especially if it's become more competitive and rates for new customers have ticked down, they may be proactively seeking to retain their customers.

It is similar to a bank spontaneously offering to refinance your mortgage at a lower rate, rather than have you refinance with a competitor. Another analogy would be a landlord proactively lowering your rent a bit if the rental market has softened, so you're not as tempted to move to another place offering incentives.

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