When should you continue your group health plan benefits under COBRA?
Many people don't realize that personal, individual health insurance coverage is often significantly less expensive that COBRA coverage or even group coverage at work (savings of 40-50% are common). However, there are times and situations when taking COBRA may be the best option:
You should continue your health benefits under COBRA if you...
* have had comprehensive benefits and don't mind paying more for them.
* want continual, guaranteed coverage at a higher cost.
* have had recent health problems.
* have had ongoing health problems.
* are taking expensive medications.
* have been declined for private insurance recently.
* have a history of medical problems.
* are pregnant or planning to get that way.
* got a job and your new employer does not offer a health plan.
Also remember, you may elect coverage on yourself or any other family member now on the group coverage, and may do so "individually." That is, maybe you're in good health, but have a spouse with a health "issue." You could elect COBRA on your spouse, but save money by purchasing individual health insurance on yourself.
The point? Don't just automatically take the COBRA offer of coverage. Talk with a broker (like us) who specializes in health insurance and see what money-saving options are available.
As ever, please contact us with questions or to talk about your specific situation and needs. For a quick quote on available health insurance options, click here.
Friday, March 19, 2010
Wednesday, March 17, 2010
Helpful HSA Resources
Here are some links to some helpful HSA (health savings account) resources:
First, here is a helpful list of what items qualify as health-related expenses in the eyes of the IRS. These are things you can utilize money in your HSA to purchase without losing your tax advantage or paying a penalty. Note, many of these things would not be covered by your high-deductible health insurance policy (such as acupuncture or chiropractic), meaning they would not count towards your deductible. The tax-advantaged HSA can take your dollars further for these purchases, however, providing yet another advantage of a health savings account.
Here is an interesting chart examining how an HSA can influence one's income/cash flow on a $40,000 salary.
If you have questions about HSAs or HSA-qualified health insurance plans, or would like a quick no-obligation quote, contact AC Forrest.
First, here is a helpful list of what items qualify as health-related expenses in the eyes of the IRS. These are things you can utilize money in your HSA to purchase without losing your tax advantage or paying a penalty. Note, many of these things would not be covered by your high-deductible health insurance policy (such as acupuncture or chiropractic), meaning they would not count towards your deductible. The tax-advantaged HSA can take your dollars further for these purchases, however, providing yet another advantage of a health savings account.
Here is an interesting chart examining how an HSA can influence one's income/cash flow on a $40,000 salary.
If you have questions about HSAs or HSA-qualified health insurance plans, or would like a quick no-obligation quote, contact AC Forrest.
Tuesday, March 16, 2010
The Advantages of an Individual Health Insurance Policy
In most cases, I believe you are probably better off with an individual health insurance policy than by getting health insurance benefits through your employer. Most people are surprised by this and have never even thought about this alternative. Here are some reasons you ought to think about it:
1. Individual health insurance is usually cheaper. Most people assume the opposite is true, but they are generally incorrect. Because individual health insurance is underwritten (meaning the insurance company can deny applications or might exclude certain health conditions) and group policies are guarantee-issue, these policies are cheaper. Also, if you're healthy, there's a good chance you are paying a higher premium than you otherwise would because you are subsidizing those on the plan who are not healthy. The bottom line is this: If you're healthy, you will almost certainly get a lower premium with individual health insurance.
The obvious exception here, of course, is if your employer is paying for your coverage. They're probably paying 50% or so, but in that scenario my experience would say you ought to at least compare the prices because you may yet come out ahead. And you should definitely think about putting your dependents on an individual policy (most small employers don't pay premiums for dependent coverage).
2. Individual health insurance policies are customizable. With employer-sponsored health insurance, the employer will decide on the plan for you, or perhaps give you the option of two plans to choose from. This one-size-fits-all approach is far from ideal. When you buy your own policy, you get to pick which company to work with, what type of plan to select, what kind of premium you want to fit into your budget, and other details. There are hundreds of options, so you can work with a broker to find the one that best fits your family's needs, budget, and preferences.
3. Individual health insurance policies are portable. Don't miss this distinctive because it is often overlooked. You own your individual health insurance policy - it is not tied to your job. If you lose your job or choose to go in a different direction, you will lose your employer-sponsored health insurance plan or pay elevated COBRA premiums for up to 18 months (and then it's gone forever). That might not seem like a big deal now, but what if your health (or that of a dependent) changed dramatically between now and then? If something terrible happened, you could find yourself without health insurance when you need it most. But if you own your health insurance policy, it stays with you when you leave your employer for whatever reason.
Individual health insurance isn't right for everyone, but if you haven't thought about it, you owe it to yourself to at least consider it. If you'd like to take a look at your individual health insurance options, check out our online "quote engine" to run instant, no-obligation quotes or contact AC Forrest.
1. Individual health insurance is usually cheaper. Most people assume the opposite is true, but they are generally incorrect. Because individual health insurance is underwritten (meaning the insurance company can deny applications or might exclude certain health conditions) and group policies are guarantee-issue, these policies are cheaper. Also, if you're healthy, there's a good chance you are paying a higher premium than you otherwise would because you are subsidizing those on the plan who are not healthy. The bottom line is this: If you're healthy, you will almost certainly get a lower premium with individual health insurance.
The obvious exception here, of course, is if your employer is paying for your coverage. They're probably paying 50% or so, but in that scenario my experience would say you ought to at least compare the prices because you may yet come out ahead. And you should definitely think about putting your dependents on an individual policy (most small employers don't pay premiums for dependent coverage).
2. Individual health insurance policies are customizable. With employer-sponsored health insurance, the employer will decide on the plan for you, or perhaps give you the option of two plans to choose from. This one-size-fits-all approach is far from ideal. When you buy your own policy, you get to pick which company to work with, what type of plan to select, what kind of premium you want to fit into your budget, and other details. There are hundreds of options, so you can work with a broker to find the one that best fits your family's needs, budget, and preferences.
3. Individual health insurance policies are portable. Don't miss this distinctive because it is often overlooked. You own your individual health insurance policy - it is not tied to your job. If you lose your job or choose to go in a different direction, you will lose your employer-sponsored health insurance plan or pay elevated COBRA premiums for up to 18 months (and then it's gone forever). That might not seem like a big deal now, but what if your health (or that of a dependent) changed dramatically between now and then? If something terrible happened, you could find yourself without health insurance when you need it most. But if you own your health insurance policy, it stays with you when you leave your employer for whatever reason.
Individual health insurance isn't right for everyone, but if you haven't thought about it, you owe it to yourself to at least consider it. If you'd like to take a look at your individual health insurance options, check out our online "quote engine" to run instant, no-obligation quotes or contact AC Forrest.
Monday, March 15, 2010
Why is health insurance tied to your job?
Individual health insurance is better and preferable to employer-sponsored health insurance. Yep - and tomorrow I'll tell you why. So why do most Americans have health insurance through their employers?
The fact that most people get their health insurance coverage through their job is an accident of history, the result of government-enacted wage freezes during World War 2. (To reward employees, companies got creative and started funding their healthcare since they couldn't increase their pay directly). Think about it - would you ever ask your employer to take care of your homeowner's policy or auto insurance? But health insurance (and, to a lesser extent, disability insurance) is different - people expect to get that at work.
There are people out there that believe the only way to get a good health insurance plan is to get one through your employer. And to be fair, for some people that's true - specifically, those who have medical conditions or medical histories that would disqualify them from getting an individual health insurance policy. Group health insurance is "guarantee-issue," meaning that you cannot be denied coverage for any reason if you qualify for an employer's plan.
So group health insurance is the only option for some people. But for others, there is a better way, which we'll discuss next time.
The fact that most people get their health insurance coverage through their job is an accident of history, the result of government-enacted wage freezes during World War 2. (To reward employees, companies got creative and started funding their healthcare since they couldn't increase their pay directly). Think about it - would you ever ask your employer to take care of your homeowner's policy or auto insurance? But health insurance (and, to a lesser extent, disability insurance) is different - people expect to get that at work.
There are people out there that believe the only way to get a good health insurance plan is to get one through your employer. And to be fair, for some people that's true - specifically, those who have medical conditions or medical histories that would disqualify them from getting an individual health insurance policy. Group health insurance is "guarantee-issue," meaning that you cannot be denied coverage for any reason if you qualify for an employer's plan.
So group health insurance is the only option for some people. But for others, there is a better way, which we'll discuss next time.
Wednesday, March 10, 2010
Some Distinctives of Carolina Care Plan
Carolina Care Plan is one of our preferred carriers in South Carolina, particularly in the group benefits market. Here are some of their distinctive advantages:
* Expansive office visit co-pay
* 5 million lifetime maximum
* No dollar caps on organ transplants
* No dollar caps on preventive services
* 100-percent preferred lab benefit
* No age restriction on immunizations
* 100-percent benefit for physician maternity charges
* Coverage for routine eye care
* Expansive office visit co-pay
* 5 million lifetime maximum
* No dollar caps on organ transplants
* No dollar caps on preventive services
* 100-percent preferred lab benefit
* No age restriction on immunizations
* 100-percent benefit for physician maternity charges
* Coverage for routine eye care
Wednesday, March 3, 2010
What People Are Saying About AC Forrest Insurance
In general we don't like to boast, but when you're considering hiring someone or trusting them with your business, it's a good idea to see what others have said. Because we want to earn YOUR business, we offer some customer feedback:
These folks represent a cross section of clients, including employer/group health insurance clients, individual health clients, and term life insurance clients. We'd love the opportunity to serve you.
“Wow!! it was hard to only choose 3 attributes that describe Alex. He is a pleasure to work with. He has been there to service our small account when we needed him. He is always courtesy and punctual. Always returns call and emails timely. I would highly recommend your talking with Alex for all your insurance needs. He can help you find the policy that best suits your needs with no other motive but to provide you with good service and coverage. Thanks for taking the time to read my recommendation and I know you will not be disappointed if you call him." - a small law office
“Alex walked me through the process to make the best decision for life insurance for my family. It is great to be able to have the confidence that our final decision provides for my family. I would recommend Alex to walk anyone through this process.” - J.H.
“I have been very impressed with Alex. I hired him last year as our health insurance agent. He has found ways to save two of my employees money. He is very responsive with small questions and eager to help. I've been in business 10 years and Alex is the best health insurance agent I've worked with.” - Nathan
“Alex helped out family choose a health insurance package. He was very knowledgeable about the different providers and was able to recommend the best plan for us. It was a pleasure to work with him and we will certainly use him for our future insurance needs.” - a web developer
“I recently became self employed and came to Alex Forrest for a health insurance plan for my family and me. Alex was knowledgeable and worked diligently to find and recommend a plan that met my family's needs and budget. He was pleasant to work with and kept me well informed of the status of our application. We were approved and had insurance cards in our hands quicker than I ever expected. Because of this positive experience, I would highly recommend Alex Forest to colleagues, friends and family." - D.P.
“If you need to talk to someone about health insurance, get in touch with Alex Forrest. He’s great at what he does and really cares about people.” - R.T.
"Thanks for being so responsive. You stood by us and were an excellent representative. We would be glad to recommend you without reservation." - Ed
"My wife and I searched several websites trying to sort out the often confusing and complex information on private health insurance coverage.
After responding to one website search, we were bombarded with contacts on the web and over the phone from several brokers and sales agents. Alex was the only one who we were confident was working on our behalf." - David
“I am so glad I have good insurance. I was diagnosed with lymphoma in January....quite a journey! Its a treatable form of cancer but I had to go through chemo. I got a clean bill of health this week from my doctor but it has been a long 6 months! Thank you for all your time, attention, and help!” D.G.
These folks represent a cross section of clients, including employer/group health insurance clients, individual health clients, and term life insurance clients. We'd love the opportunity to serve you.
Monday, March 1, 2010
How does my deductible work?
Question: I'm a bit confused about the deductible. How does that work in relation to smaller expenses?
Answer: The deductible represents your costs before your health insurance coverage kicks in. Many people lose sight of the main purpose of health insurance, which is to protect you from catastrophic financial loss (like the $25,000 appendectomy or the $150,000 heart bypass - real numbers) that could crush you. As with any form of insurance, you're transferring risk. The more risk you transfer (which takes the form of lower deductibles and other benefits) the more you pay. The more risk you take for yourself (higher deductibles or whatnot), the lower your premium.
So with any covered expense, you pay the deductible amount every year unless otherwise stated. Some plans include what they call "first dollar benefits" - these are benefits that are paid for you before the deductible. A doctor copay, drug card, preventive care benefits, etc. are first dollar benefits. These first dollar benefits don't apply to your deductible. But when you get a smaller bill, say $500, for a covered expense (let's say for an MRI), what you pay counts towards your annual deductible.
Obviously, if you have a high deductible plan, you will pay more should a major event occur. But because you're bearing more risk, you'll realize significant savings on your monthly premium. Contact us to learn more or to get a no-obligation quote on health insurance for your family or business.
Answer: The deductible represents your costs before your health insurance coverage kicks in. Many people lose sight of the main purpose of health insurance, which is to protect you from catastrophic financial loss (like the $25,000 appendectomy or the $150,000 heart bypass - real numbers) that could crush you. As with any form of insurance, you're transferring risk. The more risk you transfer (which takes the form of lower deductibles and other benefits) the more you pay. The more risk you take for yourself (higher deductibles or whatnot), the lower your premium.
So with any covered expense, you pay the deductible amount every year unless otherwise stated. Some plans include what they call "first dollar benefits" - these are benefits that are paid for you before the deductible. A doctor copay, drug card, preventive care benefits, etc. are first dollar benefits. These first dollar benefits don't apply to your deductible. But when you get a smaller bill, say $500, for a covered expense (let's say for an MRI), what you pay counts towards your annual deductible.
Obviously, if you have a high deductible plan, you will pay more should a major event occur. But because you're bearing more risk, you'll realize significant savings on your monthly premium. Contact us to learn more or to get a no-obligation quote on health insurance for your family or business.
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