18 May 2012
Affordable Health Insurance

Vanishing Deductibles For Health Insurance

You’ve probably seen the ads on television for vanishing deductibles (or disappearing deductibles) offered for auto insurance policies.  The plans vary depending on the insurance company, but typically for every year that the driver goes without an accident, the deductible is lowed by $50 or $100.  This can be a nice benefit for safe drivers.

Many health insurance companies have recently begun offering similar reductions in deductibles for their policyholders.  With the cost of health care through the roof, these can be a great way for healthy individuals to purchase more affordable health care coverage.

When shopping for family or individual health insurance coverage, consumers focus on covered expenses, premiums, and deductibles.  These factors determine what the insured’s potential out of pocket expenses will be.  Assuming competing policies offer the same coverage, then the higher the deductible amount is, the lower the premiums will be.

People who are want affordable health insurance will often take a high deductible such as $5,000 in order to keep the cost of the policy low.  These plans reward customers who do not meet their deductible by lowering the deductible by some percentage or set amount every year that the deductible is not met.  After three or four years, the insured is still paying the lower premiums for the high deductible but their deductible will have been reduced to a much lower amount like $2,500.

Vanishing deductibles are a great deal for people who are in good health and lead healthy lifestyles.  In just a few years, they can enjoy the protection of a lower deductible health care policy at the cost of higher deductible plan.

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07 May 2012
Health Insurance Plans

Lose Weight And Save on Health Insurance

According to the Center For Disease Control (CDC) over one third of American adults are obese.  Other data shows that nearly two thirds of Americans are overweight.  Being overweight has serious implications for our health and also for the cost of our health insurance. If you are shopping for an individual health insurance policy, your weight can make a big difference in the premium you pay or even whether you can find coverage at all.

Being overweight has been linked to increased risk of cardiovascular disease, diabetes, stroke, respiratory problems, osteoarthritis and other diseases.  It also delays recovery from injuries and presents an increased surgical risk.  Insurance companies charge higher rates to overweight or obese people to account for these risks.

Insurance companies use weight charts to set premiums for health insurance coverage. The insurer my use a height and weight table or rely on the person’s body mass index (BMI) to determine whether they are at a healthy weight.  People whose weight falls outside the acceptable range for their height or who have a high BMI are generally charged higher premiums for health insurance coverage.

In some cases, the insurance company will deny coverage when the applicant’s weight is too highly disproportionate to their height.  In addition, if you are overweight the underwriter may take a closer look at your health history to see if there are other risks such as taking a blood pressure medication, smoking, or cholesterol levels.  A combination of higher weight and one or more of these factors could lead to higher premiums of denial of coverage.

You can improve your health and save money on health care costs and health insurance by maintaining a healthy body weight.

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12 Apr 2012
Student Health Insurance Plans

When is Student Health Insurance Necessary?

Since the passage of the Affordable Health Care Act, young adults can now be covered by their parents’ health insurance policy until age 26.  This is great news for college students who can take advantage of their parents’ health insurance policy while they are in school and in many cases after graduation while they are looking for work.

However, there are some situations where a college student needs a separate health insurance policy.  If a student is not covered by their parents’ health insurance plan or a separate student health insurance plan, an illness or injury could be financially devastating.

Many young people feel invincible and believe that they do not need health insurance, but the reality is that 15% of young adults have a chronic illness and far more will suffer an injury or illness that requires medical attention while they are in college.  Some colleges require that a student have health insurance coverage before beginning classes.

Students whose parents are not covered by a health insurance plan should investigate buying student coverage.  In addition, if the parents’ have coverage through an HMO, check to see if the student will be in the network while at school.  Many HMO plans and eve PPO plans have coverage limited to a certain geographical area and if the student is attending college outside that area, a separate student health insurance plan might make sense.

In addition, many students who continue on to graduate school will turn 26 before obtaining their degree.  In this situation, a student health insurance plan will provide coverage until graduation and may also provide coverage for some period following graduation until the student starts their career.

The good news is that student health care plans are usually more affordable than traditional individual or family health insurance plans.  Many colleges offer coverage, but before purchasing coverage offered through the school, talk to an independent insurance broker.  Plans offered through schools often have minimal coverage and numerous exclusions.  An independent insurance broker may be able to find a better plan at a cheaper rate.

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12 Apr 2012
Health Insurance Plans

What Is An Indemnity Health Insurance Plan?

Shopping for health coverage is very confusing with so many different plans on the market and so many options within each type of plan.  Working with an independent health insurance broker and understanding some of the terminology can help sort through your options.

One type of family or individual health insurance plan you will hear about is a traditional indemnity plan.  Indemnity plans have been around for decades and are what most people think of when it comes to health insurance.

With an indemnity plan, you choose your health care providers and the indemnity plan pays for covered services.  These plans are popular because they allow the greatest flexibility for patients who often want to continue to see their regular doctor.  These are also the most expensive type of plan.

To help control costs, there are many different options available for indemnity health plans.  For example, very few plans pay 100% of covered expenses.  Most pay a pre-determined percentage such as 80%.  In an 80/20 plan, the insurance company will pay 80% of covered services and the patient is responsible for the payment of the balance.

The plan will usually have a cap on out of expenses for the patient.  A plan with an annual cap of $5000 will pay 100% of covered charges after the patient has paid $5,000 out of pocket to meet the deductible and for their 20% share of covered expenses.

To save on insurance costs, choose a plan with higher cap and/or a larger percentage paid by the patient.  In addition, some plans exclude certain types of coverage such as pre-natal care.  You can save more by accepting an exclusion as long as you are confident that you will not need coverage for that service.

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30 Mar 2012
Affordable Health Insurance

Saving on Health Insurance

Whether your family is covered by and employer health care plan or you have your own family health insurance policy, health care costs seem to continue to rise.  According to a recent report on CNN, it is projected that the average cost to cover a family of four under an employer provided health care plan will exceed $20,000 this year, more than double the cost in 2002.

If your family is feeling the pinch, take a look at your coverage to see if there are areas where you can cut costs.  If your employer offers a choice of plans, see if you can save money by switching to a different type of plan.  PPO, HMO, and POS plans have some limitations on which doctors you can see, but they still provide top quality health care at lower rates than traditional indemnity plans.

You can also look at whether you need dental or vision coverage.  These are included in some plans, but in others have to be purchased separately.  If you can do without dental or vision coverage and your plan allows you to drop it, the savings can really add up.   Just remember that you will have to pay your regularly scheduled teeth cleanings and other dental and vision expenses out of pocket.

The same is true if you purchase your own policy.  Talk to an independent insurance consultant to see what other plans are available.  Insurance companies frequently introduce new plans and options so an annual review of your policy with your insurance agent is a good habit.  Just remember not to cancel your existing policy until you have new coverage in place.

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05 Jan 2012
Affordable Health Insurance • Health Insurance Plans

Basic Health Insurance Plan Types

Shopping for an individual health insurance plan or a plan for you and your family can be a confusing and frustrating experience. There are many different types of health care plans and each plan has a wide variety of coverage, options, exclusion, deductibles, and so on. You can make the task easier by talking to an independent insurance consultant who can help you identify the right types of plans and options to best meet your needs.

Before you start comparing plans, you should know that there are basically two types of health insurance plans along with a third type that combines features of the two basic health insurance plans. A traditional indemnity plan pays a percentage of your covered health care services and you are responsible for the remainder. For example, an 80/20 indemnity plan would pay 80% of covered expenses and you would pay the other 20%. Indemnity plans usually have a deductible that can range from a few hundred dollars to ten thousand dollars or more and allow you to choose any health care provider that you want.

The other basic type of health care plan is a managed care plan such as a health maintenance organization (HMO). These plans limit your choice of health care providers to those who are part of the plan network, but your out of pocket expenses are usually lower than with an indemnity plan.

The third type of plan is a cross between these two health care plans. Called preferred provider organizations (PPO) or point of sale (POS) plans, they work like a managed care plan as long as you use the participating health care providers in the network. If you choose a health care provider outside the network, they provide coverage much like a traditional indemnity plan.

 

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05 Jan 2012
Affordable Health Insurance • Health Insurance Plans

Managed Care Health Insurance Plans

Managed care health insurance plans are one of the many options available for affordable health care coverage. There are different types of managed care plans such as Health Maintenance Organizations (HMO), Preferred Provider Organizations (PPO), and Point of Sale (POS) plans, but they all share certain features.

The main difference between managed care plans and traditional indemnity type health insurance plans is that managed care plans restrict your choice of health care providers and also place some limitations on health care decision making. The advantage of managed care plans is that they are less expensive than traditional health insurance plans and have lower out of pocket expenses. In addition, managed care plans have an emphasis on preventative health care.

With a managed care plan, you are required to use the health care providers who participate in the plan. Depending on what type of managed care plan you have, there may be some coverage for using a health care provider who is not part of the plan network, but there will be a significant out of pocket cost involved.

Most managed care plans also require that you choose a primary care physician who is usually a general practitioner or a family practice. Your primary care physician manages your health care and takes care of referrals to specialists if needed.  Managed care plans are an excellent choice for family health insurance although individual managed care plans are also available.

A common complaint about managed care plans include the availability of local health care professionals. This can vary widely depending on where you live. In addition, before you can see a specialist you have to see your primary care physician to get a referral which means that treatment by the specialist can be delayed.

 

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05 Jan 2012
Affordable Health Insurance • Health Insurance Plans

How a Traditional Indemnity Health Care Plan Works

Indemnity health care plans were pretty much the only type of health insurance plan available until managed care plans became popular in the 1970’s. Indemnity health care plans are sold as family health insurance plans or individual plans and offer the most flexibility and control over your health care decisions, but this freedom comes at a price: most indemnity plans are more expensive and have higher out of pocket costs than other types of health care plans.

With an indemnity health insurance plan, you are free to choose any health care provider you want and the insurance company will pay most or all the covered expenses. Some plans provide for full coverage, but it is more common for the plan to pay a percentage of covered expenses, typically 80%. You are responsible for paying the other 20%. You simply go to the health care provider of your choice and the insurance company pays their part of the bill and you pay your part, if any.

In addition, most indemnity health care plans will have a deductible that can be a few hundred or a few thousand dollars. The higher the deductible, the lower the insurance premiums will be. You are responsible for 100% of your health care expenses up to the amount of the deductible. Once the deductible is met for the year, the insurance company starts paying their share of your health care expenses.

Most indemnity policies that only pay a percentage of covered costs will also have a cap on out of pocket expenses. Once you have paid this amount for the year, the insurance company will start paying 100% of covered expenses. Again, the out of pocket expense cap can vary from a few thousand dollars to tens of thousands of dollars depending on the plan. A lower out of pocket expense cap will mean higher policy premiums.

 

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05 Jan 2012
Affordable Health Insurance • Health Insurance Brokers

Minimizing Health Insurance Costs

Health insurance may seem expensive, but it’s nothing compared to the cost of going without. The cost of treating a broken arm or ruptured appendix is enough to bankrupt most families and you don’t even want to think about what treatment a serious medical condition would cost. In addition to the risk of financial disaster, going without health insurance can compromise your health. Uninsured people are less likely to get preventative medical care and also tend to put off getting treatment for minor problems that can become major concerns.

Whether you are shopping for an individual health insurance plan or a family plan, there are a number of ways to lower the cost of good health insurance coverage. First, try using an independent insurance consultant. They have the experience needed to help you find the best helath insurance coverage at the lowest rate.

Also, consider a manage care health insurance plan such as an HMO or PPO. These plans offer less flexibility and control over health care decisions than with traditional indemnity plans, but provide high quality health care at more affordable rates and lower out of pocket expenses.

If you choose a traditional indemnity plan, you can get a lower cost for the plan by taking some of the responsibility for health care costs. For example, if you choose a plan that only covers 80% of your health care expenses instead of 100%, you will see a significant savings on the policy premiums. The same is true if you choose a plan with a higher deductible. Instead of a $500 deductible, consider a plan with a $1,000 or $2,000 deductible.

Finally, you can negotiate a lower rate on plans that exclude certain types of health care expenses. For example, if you don’t plan to have children, a plan that excludes expenses related to pregnancy might save you some money on health insurance premiums.

 

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05 Jan 2012
Affordable Health Insurance • Health Insurance Plans

Advantages of a Health Savings Account (HSA)

One option for covering health care expenses at a reasonable cost is the combination of a Health Savings Account (HSA) with a high deductible health insurance policy. This type of arrangement is particularly well suited for people who are willing to take financial responsibility for routine medical care, but need protection for high dollar non-routine medical expenses.

An HSA is a special type of tax advantaged savings account for paying medical expenses. Contributions to the HSA are tax deductible up to the annual limit and are used to pay qualified medical expenses. The result is that amounts spent on medical care through the HSA account are tax free.

For 2012, the maximum annual contribution to an HSA is $3,100 for an individual and $6,250 for a family. Unlike a flexible spending account, any unused balance of the HSA at the end of the year rolls over to the next year and is available to pay health care expenses in that year.

An HSA is combined with a health insurance policy with a deductible of at least $1,200 for an individual and $2,400 for a family. Typically, the deductible on the health insurance policy will be somewhat higher, between $5,000 and $10,000.

The result is that the health insurance policy will have very affordable premiums, but will only cover expensive, non-routine medical expenses. The policy holder will pay for most routine care and non-routine care using the balance of their HSA account up to the amount of their health insurance deductible. In the event of a serious health issue, once the deductible is met health insurance policy kicks in pays those covered expenses, protecting the policy holder against a financial disaster.

 

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