Health Insurance
Health Insurance A Necessity Of Life
Not everything in life goes smoothly or as we expect it to. That is why it is important that we should always be careful. Insurance of any kind is important to cover up for the uncertainties that may occur in future.
However the insurance that is most important to have is the health insurance as we can afford not to have the other insurances but the absence of health insurance can prove to be fatal not only for us but also for people around us as well.
There are different types of health insurance policies person who wants to get insured can choose the policy suits them the best. The two main types of policies are
1.Free for service insurance also known as indemnity insurance this is a traditional type of health insurance that pays the portion of each medical service you get like doctors visit and hospital stays while you pay the remaining costs. Premiums are higher than the other policies.
2.Managed care plans also known as HMOs (health management organizations) or PPOs (preferred provider organization). In this case the health insurance company has a contract with doctors and hospitals to provide you service. In this type of health insurance you pay monthly premiums and a small amount per visit called co pay. You can use the advice of other doctors as well by paying a higher amount of co pay.
The best way to go in for the health insurance is through a broker. You can choose your broker depending upon your requirements. A broker can get you a good health insurance policy as well as give you information on several key features of the policy in general. Like:
What is the monthly premium?
Is the policy guaranteed renewablenon cancelable or just guaranteed renewable?
Are premium rates based on age of attaining the policy or using the features of policy?
Does the plan pay for catastrophic medical costs?
You can answers to all the questions and more if you take the help of the brokers in your health insurance policies.
The health insurance organizations offer you different deductibles with larger the deductible the lower the monthly installments. You can choose a deductible of 50% to 80%. It all depends on your conditions.
Individuals with pre existing conditions for example, they have a health problem before going in for health insurance find it difficult to get health insurance coverage. However depending on your state you can choose any of the following policies. They are: open enrollment, health insurance provability and accountability act (HIPAA), high risk pools or temporary coverage.
The borrowers can choose from the myriad of resources that deal in health insurance.
Life is uncertain thats why it is essential that we have insurances with us and every member of our family to live life with a reasonable amount of certainty. Also health insurance has plenty of features which help us in times that we feel a little vulnerable. So it is important that we go for a policy of health insurance.
Health Insurance – Is Some Better Than None?
About 50 years ago, health insurance started to be an attractive incentive offered by employers to attract and keep good employees. Overall, group plans tended to be inexpensive for employers, with employees contributing a small amount of money or none at all to secure health insurance for themselves and their families.
It was more expensive for individuals to pay for non-group policies, but coverage was fairly affordable. Then medical costs started to rise, people started to live longer and the medical profession became adept at curing various diseases and saving and prolonging the lives of people with serious injuries and life-threatening illnesses. Health care and insurance prices started rising much more quickly than annual incomes and premiums began taxing both employers, who were paying the lions share of premiums, and for employees, to whom businesses often passed on costs through larger deductibles, greater out of pocket expenses and higher premiums.
According to a recent report by the MSNBC News Service, 41 percent of Americans whose income ranges from moderate to middle had no health insurance for at least part of 2005. In 2001, that number was much lower28 percent. Additionally, more than 50 percent of uninsured Americans in 2005 found it difficult to pay their medical bills. Another alarming statistic28 percent of Americans in 2005 had no health insurance, while 24 percent had none in 2001.
So, what should a person do if they dont have any health insurance or if they have a choice between a cheap discount plan that does not cover core expenses and an affordable plan that may cost a bit more but also provides much better coverage? According to data from the U.S. Centers for Disease Control and Prevention, the majority of people who are not covered for important screening tests, such as a mammogram, colon cancer screening or a PSA test, will not undergo those exams. Also, close to 60 percent of people without health insurance missed treatment or did not buy medicine needed for a chronic condition.
All of these figures point to one thingpeople who lack health coverage for essential services are often unable to pay for those services, putting them at greater risk for developing new or exacerbating existent health conditions.
What should you look for in a health insurance plan, especially when cost is an issue? Its important that you get the best coverage you can afford. Skimping on premiums can save you money upfront, but the result can prove to be penny-wise and pound-foolish. Sometimes people cant afford coverage and sometimes they believe because they are healthy that they simply dont need it. However, healthy people get ill or are involved in serious accidents all the time. You never know when youll need coverage.
Some people opt for catastrophic insurance, which usually covers only major medical and hospital expenses above a specific deductible. Under such a plan, the insured pays for routine doctor visits and prescription drugs. With this type of plan, youll pay a low monthly premium but will also have a high deductible and limited coverage. Deductibles start at 500 per year but can be considerably more. If you purchase an inexpensive policy with a 10,000 deductible and you undergo surgery that costs 8,000, you must pay that 8,000. If your surgery costs 12,000, you would owe 10,000.
One insurance company offers a plan that costs 29 per month for a 21 year-old, non-smoking female. Theres a yearly 250 deductible and 2,500 in out of pocket expenses that the insured must pay before the policy kicks in. Hospital, surgical and x-ray expenses are covered but other costs, such as doctor visits, prescription drugs, maternity care and mental healthcare are not included. Theres a lifetime maximum of 1 million.
Its certainly a bargain, if you dont plan on going to the doctor very often. To enroll in a plan that will cover doctor visits, prescriptions, maternity expenses and more could easily cost 400 per montha jump of 371 every 30 days for a total cost of 4,800 per year!
Group health insurance plans, which you can usually enroll in through your employer, union or guild, are the best buy. Individual plans, especially those that offer comprehensive coverage, can be crippling to many peoples pocketbooks. When buying health insurance, its important to shop around. Your choice of what type of plan you purchase will be determined by what you can afford and what you need as far as insurance is concerned. Theres no right or wrong choice when it comes to health insurance but at the very least you should have catastrophic insurance.
There are basically three types of plansFee-For-Service, Health Maintenance Organizations (HMO) and Preferred Provider Organizations (PPO). Fee-For-Service plans offer the most choice regarding doctors and hospitals but they often involve quite a bit of paperwork and are the most expensive. If youre willing to give up some or a lot of choice, do less paperwork and save some money on premiums then either a HMO or a PPO is for you.
A HMO offers the least amount of choice, involves co-pays, has the least amount of paperwork and is the cheapest of the three types of insurance. A PPO combines some elements of Fee-For-Service and a HMO. Youll have more choice than you would with a HMO but less than you would with a Fee-For-Service plan. It tends to be more expensive than a HMO but less expensive than Fee-For-Service. All three types of insurance have some aspect of Managed Carewhich determines how much health care you can useattached to them, with Fee-For-Service having the fewest restrictions and a HMO being restricted the most.
When shopping for health insurance ask the following questions
* How much is the premium?
* What services are covered?
* What are the total deductible and out of pocket expenses per year?
* How much are the co-pays?
* What is the maximum lifetime benefit?
* How much freedom will you have when choosing doctors and hospitals?
* What are the pre-approval procedures for seeing specialists, undergoing a procedure or being given a test?
* What prescription drugs are covered and to what degree?
* Is mental health covered and to what degree?
* Is dental covered and to what degree?
As you begin to narrow down your choices, you can look more closely at specific plans that seem to fit your needs and determine which offer you the best value for your pound?
America has one of the finest healthcare systems in the world and one of the most complex health insurance systems across the globe. Often, they seem to be at odds with one another, unable to communicate and work together. That can be one of the most frustrating parts of anyones foray into the world of healthcare professionals, hospitals and health insurance companies. For this reason alone, its important that you carefully and thoughtfully choose your healthcare benefits provider.
Health Insurance 101 Explained
We all understand the importance of health insurance; however, as the types of health insurance continue to increase it is becoming more and more difficult to select the type of coverage that is best for you and your family. To help you find out which type of policy might benefit you the most, lets take a look at the most common types of policies.
There is usually a lot of hype regarding HMOs so lets look at that one first. A HMO is a health maintenance organization plan that works with a specified group of doctors and hospitals within the network. A primary healthcare physician is selected and you must obtain referrals for care that cannot be provided by that physician. The benefits of this type of plan are lower office visit costs and prescription drug co-pays. In addition, there will typically be either no or limited deductible costs for hospital stays. Depending on your coverage, there may also be no pre-existing condition cause limitations. It is also important to understand that your choice of doctors and hospitals will be limited with a HMO and you wont be able to have out of network services covered.
A PPO or Preferred Provider Organization works similar to a HMO; however, the major difference is that you are not required to select a primary care physician. In addition to the benefit of being free to choose your own physician without worrying about a referral you also gain the benefit of limited or no deductible costs for hospital stays as well as a possible larger selection of physicians that might be available with a HMO. Out of network services may also be covered; however, for a higher charge than in network services.
A POS, or Point of Service, is also similar to a HMO in that you select a primary care physician. The difference is that you are free to choose out of network treatment if youre willing to pay a higher out of pocket cost.
Another option is what is known as a traditional coverage policy. This type of policy will have a higher monthly premium as well as deductibles. In addition, you will generally be required to pay for services out of your own pocket up front and then submit claim reimbursement forms.
You may also wish to consider various types of disability plans, which cover a percentage of your income in the event that you experience an illness or accident that prevents you from working for a period of time. A short term disability plan will provide benefits from the first day of an accident or the eighth day of an illness up to 26 weeks. Generally, this type of plan will cover 66% of your weekly income.
Long term disability will begin after short term coverage has expired and will provide coverage for a variable term, depending on the policy you select. Some policies are limited to providing coverage up to two years while others will cover you up to the age of 65.
Do You Need Health Or Travel Insurance?
Obtaining medical treatment and hospital care can be costly for travelers who are injured or who become seriously ill overseas. The Social Security MedicareMedicaid program does not provide coverage for hospital or medical services outside the United States.
Before you leave the United States, you should be informed about which medical services your health insurance will cover abroad.
Senior citizens may wish to contact the American Association of Retired Persons for information about foreign medical care coverage with Medicare supplement plans.
If your health insurance policy does not provide coverage for hospital or medical costs abroad, you are urged to purchase a temporary health policy that does provide this type of coverage. There are short-term health and emergency assistance policies designed for travelers.
You can find the names of companies that provide such policies from your travel agent, your health insurance company, or from advertisements in travel publications. In addition to health insurance, many policies include trip cancellation, baggage loss, and travel accident insurance in the same package. Some traveler’s check companies have protection policies available with the purchase of traveler’s checks.
Medical Evacuation
Although some health insurance companies may pay “customary and reasonable” hospital costs abroad, very few will pay for medical evacuation back to the United States. Medical evacuation can easily cost 10,000 or more, depending on your location and medical condition.
One of the main advantages of health and emergency assistance policies is that they often include coverage for medical evacuation to the United States. Even if your regular health insurance covers you for emergencies abroad, you should consider purchasing supplemental insurance to cover medical evacuation.
Whichever health insurance coverage you choose for travel overseas, remember to carry with you both your health insurance policy identity card and claim forms.
Do You Need Travel Insurance?
You may not need travel insurance, if you are already adequately covered by other insurance policies.
Depending on the travel insurance plan, travel insurance usually promises to cover you for cancellation or interruption of your trip, some form of emergency medical care while you are traveling, lost or stolen luggage, and various other troublesome occurrences.
Before you decide on a travel insurance plan, it is wise to investigate the plan carefully and read the fine print. You should closely check any agreements with your travel agent, tour operator, airline, or other companies involved with your travel plans. The agreements may include written guarantees.
If you have a fully refundable airline ticket, you may decide that you would not need trip cancellationinterruption insurance.
On the other hand, it may be worthwhile noting that certain insurance plans can protect you by covering the financial costs in case of the following situations:
A sudden, serious injury or illness to you, a family member, or a traveling companion.
Financial default of the airline, cruise line or tour operator.
Natural disasters or strikes that impede travel services.
A terrorist incident in a foreign city within 10 days of your scheduled arrival in that particular city.
The fact that you, a traveling member of your family, or a traveling companion were quarantined served with a court order or required to serve on a jury.
A circumstance in which you were directly involved in an accident enroute to departure for your trip.
It is a good idea to check your other insurance policies. For instance, your homeowners or tenants insurance may cover the loss or theft of your luggage.
Certain credit cards may also provide additional travel insurance, if you have used them to purchase the ticket for your trip.
Your health insurance may provide certain coverage, regardless of where you travel. But it is very important to note that some policies only partially cover medical expenses abroad. Moreover, as previously explained in the section on Health Insurance, MedicareMedicaid will not cover hospital and medical services outside the United States.
Your travel agent should be able to advise you about the right plan for you. Before purchasing travel insurance, review the plan carefully, and be wary of buying coverage that you may already have.
Commonwealth Of Virginia Low Cost Health Insurance
If you live in the Commonwealth of Virginia and are looking for low cost health insurance, you andor your children may be eligible for coverage under one or more of the three FAMIS health plans sponsored by the Commonwealth.
The three FAMIS (Families Access to Medical Insurance Security) plans are as follows:
FAMIS The Children’s Health Insurance Program: This program for children covers services such as:
doctor visits
Well-baby checkups
Hospital visits
Vaccinations
Prescription medicine
Tests and x rays
Dental care
Emergency care
Vision care
Mental health care
FAMIS Moms: This program provides health care for pregnant women up to two months after the pregnancy.
Smiles for Children: This program provides diagnostic, preventive, restorativesurgical procedures and orthodontics (Basically the same coverage as provided through Medicaid) Since this program is primarily for children, it provides limited necessary diagnosticoral surgery services for adults (emergency only)
The beauty of this program is that the co-payments are only 2.00 or 5.00. Regular check-ups are free and there are no monthly premiums or enrollment costs. With Smiles for Children, there are no co-payments or cost for dental services. However, you must use dental providers that are within the network.
To qualify for any of the FAMIS programs the applicant must be a US citizen under 19 (for the Children’s program), live in Virginia and not covered by another plan. You must not have had insurance for 4 months and are not eligible for Medicaid. There are also income requirements. For example, the gross income for a family of 4 must not exceed 40,000 annually. The FAMIS website (http:www.famis.org ) has a family income calculator in which potential insureds may check their income to see if they qualify.
The Commonwealth of Virginia realizes that quality medical care is important, and has successfully provided a low cost health insurance program for their low income residents.
Types of Health Insurance
Health insurance is designed to protect against loss of income and expenses for medical care. There are two broad categories of health insurance policies: disability income policies and medical expense policies.
Disability income policies can also be referred to as loss of income, loss of time or replacement income. This type of policy will pay benefits to an insured who is disabled and can no longer work to earn a regular income. Payments can be weekly or monthly depending on the policy.
Medical expense policies are represented by a wide range of coverage from very minimal to comprehensive packages with multiple coverage. Some include both accidents and illnesses, various hospital expenses and other costs pertaining to medical care such as accident and sickness policies, hospital-stay policies, basic medical expense policies and major medical expense policies.
Any of these policies might cover various combinations of the above and may be paid in a lump sum.Some policies cover only accidents and not illness. As you might imagine, policies like this are very specific about what is considered an accident.
It is important to understand what is defined as an accident as it pertains to the health insurance industry: an accident is an event that is unforeseen and unintended.
Keep in mind that any discussion of this type of policy also applies to any type of policy that includes accidental coverage, not just accident specific policies.
Accident benefits are most commonly paid for accidental loss of life (also called accidental death), accidental loss of limb or sight (dismemberment), loss of time andor income, hospital expenses, surgical expenses, and medical expenses like visits to the doctor.
Accidental death benefit can also be referred to as principal sum. This type of coverage should not be confused with life insurance. There is a world of difference between the two. Life insurance policies will generally be paid regardless of the cause of death. An accidental benefit is paid ONLY if the death is accidental as opposed to a death by natural causes or illness.
The person who receives the death benefit is called the beneficiary. The policy owner has the right and responsibility of naming beneficiaries. Usually there is a primary beneficiary however heshe can assign a second and even a third beneficiary.
The primary beneficiary is the first person in line to receive the benefit in the event of the death of the policy holder. The policy owner can also name a second beneficiary who would receive the benefit in the event the primary beneficiary dies before the insured. Some policies can include a third beneficiary who would be in line after the first two.
There is another important element in regard to accident policies: An accidental death may not be instant. A person can die as a result of an accidental injury months after the accident occurrence. Read your policy carefully because most stipulate that the accidental death benefit will only be paid if death occurs within three months of the accident.
7 Things You Should Know About Health Savings Account Plans
7 Things You Should Know About Health Savings Account Plans
Health savings accounts (HSAs) are wildly popular. Since their introduction in 2004, approximately 2.5 million Americans have enrolled in these so-called consumer-driven health plans. But, alas, HSA plans are not for everyone.
Here are some pointers to help you consider whether an HSA will benefit you and your family.
1.An HSA plan can cut healthcare costs by an average of 40% for many people.
Nevertheless, some people will not realize any net savings. Those most likely to realize significant savings are people who pay all of their own health insurance premiums, such as the self-employed, who are relatively healthy with few medical expenses.
2.www.hsahealthplans.com “>health savings plan restores freedom of choice.
An HSA plan puts individual consumers back in control of their own health care. This also means that each individual must be more responsible for his or her own health care decisions. This approach of self-reliance is not always popular with or appropriate for everyone, especially those who have become comfortable with HMO-type “co-pay” plans.
3.www.hsahealthplans.com “>Health savings accounts reduce income taxes.
Every pound contributed into your HSA account is deducted from your taxable income in the same manner as contributions into a traditional IRA account–regardless of whether you spend it or just save it. Interest and investment earnings in a HSA accumulate tax-deferred, just like a traditional IRA. Unlike an IRA, withdrawals are tax-FREE when used to pay qualifying medical expenses. In many situations, new account holders are able to almost fully fund their HSA with money saved on premiums from a prior, higher priced plan. By stashing all or most of those savings into an HSA, the account holder realizes instant, additional savings in the form of reduced taxes.
4.You must have a properly qualified high health insurance policy in place first before
you can open a health savings account. One of the biggest misconceptions about HSA plans is that any insurance policy with a high deductible will qualify the policyholder to establish an HSA account. IRS regulations, however, are quite specific. Not just any policy with a so-called “high deductible” will suffice. It is important to be certain that you are insured under a properly qualified policy. Your best bet is to work with a qualified and duly licensed health insurance broker who is experienced in marketing properly qualified HSA plans.
5.You must be insurable in order to qualify for the HSA-qualified health insurance policy.
Because most people do not have a properly qualified high deductible insurance policy, they will need to switch insurance plans in order to become HSA-eligible. Unless coverage is being offered under small group reform laws (generally groups with 2-49 employees), the new high deductible policy will be individually underwritten by an insurance company. This means that some “pre-existing” conditions may not be fully covered. Alternatively, some companies may opt to cover certain “pre-existing” conditions in exchange for slightly higher premiums. Unfortunately, some health conditions simply render an individual uninsurable (examples: diabetes, chron’s disease, heart attack, etc.). Underwriting requirements vary by state, which is another reason to rely on an experienced health plan broker.
You should not switch to a HSA plan when the management of existing medical expenses is more important than saving up-front medical insurance premiums. Do not change health plans: in the middle of ongoing medical treatments; after a major health issue has been diagnosed; or if any family member is pregnant.
Generally, it is relatively hassle-free to qualify, i.e. no medical exams, etc. Most insurance companies offering HSA coverage will issue based on your application answers, perhaps accompanied by a follow-up telephone interview. In some cases, medical records may be requested, and companies always reserve the right to order a paramed exam.
6.Although HSA insurance premiums are low, they are not always as low as you might expect.
This happens for one main reason. Simply stated, the underlying insurance policy is just thata health insurance policy. Although it has a “high” deductible, as required by law, the insurance company still must compensate for the risk it is assuming over the deductible amount, which it does by charging premiums. Many companies offer policies with one deductible that all family members contribute toward. With those plans, it is not uncommon for premiums for a 5000 family deductible with 100% coverage after the deductible to be comparable to a 2500 “per person” deductible plan with 8020 coverage after the deductible.
Lower premiums represent just one element of the lower net cost achieved with an HSA plan. The low net cost of an HSA plan is achieved after factoring in the benefits of lower taxes, made possible by the tax-deductible contribution to the HSA account. Thus, if obtaining the lowest possible gross premium is your main concern, you may wish to consider a high deductible, non-HSA policy, especially if you do not see the benefit to contributing to a tax-deductible savings account.
7.An HSA offers your best chance to keep a lid on health insurance rate increases.
Make no mistake-you will have rate increases with your HSA insurance policy. Because an HSA qualified policy is still a health insurance policy at heart, there is no logical reason to presuppose that an HSA policy would be immune to rate increases required by an insurer to keep paying claims and stay in business. But what you can expect is that the actual pound amount of any future rate increases will be substantially lower compared to traditional health insurance plans (regular PPO and HMO plans). This is true because insurers base increases on percentages, and the same percentage of a lower base premium results in a lower pound increase. It’s not a perfect solution-but it is the most cost-efficient solution for many qualified people.