For some of our clients, health insurance premiums are simply out of reach during difficult economic times. But that doesn't mean you have to be without coverage. Here are three options to consider:
High Deductible Plans. A general rule of thumb with insurance of any type (health, auto, etc.) is that the higher your deductible, the lower your monthly premiums. If you're trying to maintain or get health insurance coverage and your budget is tight, then jack up the deductible. We have in mind something in the $5-10k range. Doesn't this defeat the purpose? Not at all, if the purpose is to protect you from devastatingly high medical bills (like a $75k heart procedure or a $25k appendectomy). There may also be plans available in that deductible range that would give you a doctor copay and a drug card. Any major medical plan will also give you access to provider network discounts before the deductible.
Short-Term Health Insurance. Short-term plans are designed to provide protection in the gaps when you're between policies (like being between jobs). These plans provide protection for a defined length of time (typically 1-6 months). Typically you have protection above the deductible amount, but not first-dollar benefit (like copays). Of course, you would have access to provider network discounts. Because of the limited timeframe, these plans are much less expensive than major medical plans and can be a useful way to get coverage in a pinch.
Limited Benefit Plans. These plans provide first dollar coverage for health services - both routine and major. The key thing to note here is that there are caps to the benefits provided (hence the name "limited benefit"). Most limited benefit plans require no underwriting so there is no problem covering pre-existing conditions. These are called "guarantee issue" plans. As long as you pay your premium, you're OK. Some that have higher benefit caps require minimal underwriting. These plans are much cheaper than major medical insurance plans. While we always prefer major medical coverage because of the catastrophic protection missing here, these plans are better than nothing. If you're in a budget crunch, this is a very viable option.
Discount Cards. A prescription drug discount card will save you money on prescriptions if you don't have insurance. These are typically very inexpensive - $10/month or so will get you some help with your meds.
If you're interested in pursuing any of these alternatives to major medical health insurance, contact AC Forrest Insurance to learn more.
Monday, September 21, 2009
Friday, September 18, 2009
Healthcare Costs Drive Health Insurance Premiums
Health care costs are rising at an unsustainable rate and adding a significant burden on families and employers across the country. As policymakers turn their focus to this issue, below are some important facts about rising health care costs:
•
According to government data, health insurance premiums track directly with the underlying cost of medical care. As the cost of providing medical care increases, premiums rise accordingly. Some employers and families have chosen plans with lower premiums and higher cost-sharing (deductibles, co-pays, and coinsurance) to offset the increase in premiums.
In terms of what’s responsible for rising premiums, the cost of providing benefits has nine times the impact that health plan administrative costs do.
In order to make health care coverage more affordable and to reduce out-of-pocket costs, it is important to focus on the key medical cost drivers. Please see this study by PricewaterhouseCoopers which examines what is really fueling rising health care costs: http://www.americanhealthsolution.com/assets/Reform-Resources/Cost-Trends-and-Cost-Shifting/risinghealthcarecostsfactors2008.pdf
•
According to government data, health insurance premiums track directly with the underlying cost of medical care. As the cost of providing medical care increases, premiums rise accordingly. Some employers and families have chosen plans with lower premiums and higher cost-sharing (deductibles, co-pays, and coinsurance) to offset the increase in premiums.
In terms of what’s responsible for rising premiums, the cost of providing benefits has nine times the impact that health plan administrative costs do.
In order to make health care coverage more affordable and to reduce out-of-pocket costs, it is important to focus on the key medical cost drivers. Please see this study by PricewaterhouseCoopers which examines what is really fueling rising health care costs: http://www.americanhealthsolution.com/assets/Reform-Resources/Cost-Trends-and-Cost-Shifting/risinghealthcarecostsfactors2008.pdf
Thursday, September 17, 2009
The Dangers of a Government Run Plan (Public Option)
Exacerbate the Hidden Tax on Individuals and Families: In the current
system, individuals and families pay a hidden tax of more than $1,500 on their
premiums to offset underpayments to providers from Medicare and Medicaid. A
new government-run program would exacerbate the underfunding of providers
and leave fewer people with private coverage to offset this growing cost-shift.
• Add additional liabilities on the federal budget: Low provider reimbursements
from Medicare and Medicaid are currently offset by employers, individuals and
families who pay a hidden tax to cover the cost-shift. A new government-run
plan would drive out private coverage, leaving hundreds of billions of dollars in
new liabilities that would have to be added to the federal budget to avoid
bankrupting hospitals across the country.
• Patients’ Choices of and Access to Health Care Will Suffer: Many Medicare
beneficiaries today have trouble locating a primary care physician that will
accept new Medicare patients. Enrollees in the government-run health plan
would experience similar difficulties in locating a participating physician who is
taking on new patients or long wait times before a patient could visit a doctor.
• Turning Back the Clock on Quality, Care Coordination, and Disease
Management: Health plans have pioneered programs to improve the quality
and affordability of health care coverage, such as developing provider
networks, implementing tiered drug formularies, pursuing administrative
simplification projects, managing treatment for patients with chronic
conditions, and implementing pay-for-performance initiatives. The Medicare
program, meanwhile, has had virtually zero innovation since its inception
nearly 45 years ago and programs to implement health plan initiatives into the
Medicare fee-for-service program have been largely unsuccessful. A new
government-run plan would turn-back-the-clock on more than forty years of
health care innovation.
system, individuals and families pay a hidden tax of more than $1,500 on their
premiums to offset underpayments to providers from Medicare and Medicaid. A
new government-run program would exacerbate the underfunding of providers
and leave fewer people with private coverage to offset this growing cost-shift.
• Add additional liabilities on the federal budget: Low provider reimbursements
from Medicare and Medicaid are currently offset by employers, individuals and
families who pay a hidden tax to cover the cost-shift. A new government-run
plan would drive out private coverage, leaving hundreds of billions of dollars in
new liabilities that would have to be added to the federal budget to avoid
bankrupting hospitals across the country.
• Patients’ Choices of and Access to Health Care Will Suffer: Many Medicare
beneficiaries today have trouble locating a primary care physician that will
accept new Medicare patients. Enrollees in the government-run health plan
would experience similar difficulties in locating a participating physician who is
taking on new patients or long wait times before a patient could visit a doctor.
• Turning Back the Clock on Quality, Care Coordination, and Disease
Management: Health plans have pioneered programs to improve the quality
and affordability of health care coverage, such as developing provider
networks, implementing tiered drug formularies, pursuing administrative
simplification projects, managing treatment for patients with chronic
conditions, and implementing pay-for-performance initiatives. The Medicare
program, meanwhile, has had virtually zero innovation since its inception
nearly 45 years ago and programs to implement health plan initiatives into the
Medicare fee-for-service program have been largely unsuccessful. A new
government-run plan would turn-back-the-clock on more than forty years of
health care innovation.
Wednesday, September 16, 2009
H1N1 Flu
Flu season may be serious this year due to infections by H1N1 (swine flu) on top of the “routine” seasonal influenza that we battle every winter.
Flu, no matter what the cause, is easily spread in the workplace and can have a major impact on business operations. It is possible that flu conditions could become severe during the next several months because experts anticipate that both seasonal influenza and H1N1 (swine flu) are expected to be circulating at the same time. Therefore, it is important to plan now for how your business will respond under those circumstances.
The most important thing to remember is that H1N1 (swine flu) is a flu virus. The approach to disease spread and treatment are the same as seasonal influenza. Among these are frequent handwashing and staying home from work, school, church, or other public gathering places until 24 hours after your flu-symptoms have gone away.
The federal government is making the H1N1 vaccine available to providers for free. You'll need to check with your provider to see what (if any) costs will be charged related to the administration of the vaccine, and with your health insurance plan to see if those charges will be covered expenses.
Threats like these underscore the need to have good health insurance coverage. For a free quote or consultation, contact AC Forrest Insurance Group today!
Flu, no matter what the cause, is easily spread in the workplace and can have a major impact on business operations. It is possible that flu conditions could become severe during the next several months because experts anticipate that both seasonal influenza and H1N1 (swine flu) are expected to be circulating at the same time. Therefore, it is important to plan now for how your business will respond under those circumstances.
The most important thing to remember is that H1N1 (swine flu) is a flu virus. The approach to disease spread and treatment are the same as seasonal influenza. Among these are frequent handwashing and staying home from work, school, church, or other public gathering places until 24 hours after your flu-symptoms have gone away.
The federal government is making the H1N1 vaccine available to providers for free. You'll need to check with your provider to see what (if any) costs will be charged related to the administration of the vaccine, and with your health insurance plan to see if those charges will be covered expenses.
Threats like these underscore the need to have good health insurance coverage. For a free quote or consultation, contact AC Forrest Insurance Group today!
Friday, September 11, 2009
Limited Benefit Plans
For many people, rightly or wrongly, major medical insurance is simply not an option. There are many health conditions and diagnoses that will result in one being declined coverage on an individual major medical health insurance plan. If you're in that situation, and don't have access to an employer-sponsored group plan, than unfortunately there's not a major medical health insurance option available.
That's why AC Forrest has invested a lot of time in recent months in finding the best available "limited benefit" health plans for our clients for whom such plans are the only option. These plans provide a schedule of benefits for healthcare costs that provide immediate, upfront help with expenses (ie usually there is no deductible). As the name "limited benefit" suggests, there is a cap on the benefits you would receive. But often, even after maximum benefits have been reached, you can still benefit from access to provider network discounts, which can give you substantial savings on the cost of healthcare.
These plans typically have little to no underwriting - many are "guarantee-issue," meaning that you're guaranteed coverage as long as you pay your premium regardless of your medical history, height/weight, or any other factor. These plans are usually significantly cheaper, opening the door to some coverage for those who can't afford traditional plans.
Contact AC Forrest to learn more about limited benefit health plans.
That's why AC Forrest has invested a lot of time in recent months in finding the best available "limited benefit" health plans for our clients for whom such plans are the only option. These plans provide a schedule of benefits for healthcare costs that provide immediate, upfront help with expenses (ie usually there is no deductible). As the name "limited benefit" suggests, there is a cap on the benefits you would receive. But often, even after maximum benefits have been reached, you can still benefit from access to provider network discounts, which can give you substantial savings on the cost of healthcare.
These plans typically have little to no underwriting - many are "guarantee-issue," meaning that you're guaranteed coverage as long as you pay your premium regardless of your medical history, height/weight, or any other factor. These plans are usually significantly cheaper, opening the door to some coverage for those who can't afford traditional plans.
Contact AC Forrest to learn more about limited benefit health plans.
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