We all hope to stay well and healthy all the time, but we all know that we are going to be sick or may even be unfortunate and have an accident at some point in our lives. We all have access to the state health services but if you want additional private cover then this is where taking out a private medical insurance comes in. This article explains about health insurance in general and how quotes are worked out in general.
Private medical insurance will cover the cost of your treatment when you are unwell, but the kind of cover and amount of the cover you get varies considerably from policy to policy.
Make sure that when you are considering which health insurance policy to take out that you carefully read the policy so that you can find out which illnesses you are covered for and which illnesses are not included in the policy cover. It can also be the case that your medical insurance policy may require you to use particular hospitals for your treatment.
So what are health insurance quotes calculated on? Well providers calculate your policy quote on several factors, the most important being your age, your health, your medical history, your occupation and they also look at whether you smoke or not. If you do smoke, then you are likely to get a more expensive medical insurance quote.
Some health insurance policies let you choose to have an excess which if you decide to have this option it will lower your insurance quote. Another important thing to take into account when taking out a private medical insurance policy is that no matter how much you decide to spend on your cover you will not get cover for certain illnesses. These illnesses include long term illnesses, alcohol abuse, AIDS, suicide attempts and illnesses that are related to old age.
It is very important that when you take out your cover that you advise your healthcare insurance company of everything that is relevant to your health insurance application. This means you must tell them about any pre-existing medical condition or illness that you may have and it is highly likely that they will not cover you for these pre-existing medical conditions or illnesses.
And finally it is worth mentioning that it is always a good idea that you shop around to find the most suitable and affordable private medical insurance solution for you.
Saturday, September 22, 2007
What You Need To Know About Health Insurance & How Health Insurance Quotes Are Calculated
Bridging the Gaps with Health Savings Accounts
As often happens to investment vehicles created by legislation, Health Savings Accounts (HSAs) have suffered under the complex regulations meant to discourage misuse. However, the accounts have potential to do more than simply allow investors to save and pay for health-care expenses with tax-free dollars. They offer a potential way for individuals to bridge gaps in health insurance coverage that may occur during times of unemployment or in retirement.
The Medicare Modernization Act of 2003 created HSAs. Anyone younger than 65 can open an HSA after purchasing a qualified high-deductible health insurance plan. An individual can maintain an HSA and be covered under other insurance policies, as long as that person doesn't "double dip" and have medical expenses paid by both insurance and the HSA.
To be considered "qualified" the insurance plan must have a deductible of at least $1,050 for individuals or $2,100 for family, and have a limit of $5,250 individual and $10,500 family for out-of-pocket expenses. Choosing a policy that qualifies can involve insurance and tax issues that should be discussed with professionals in those fields.
Contribution caps are the lesser of the insurance plan deductible or the IRS maximum. For 2006, the IRS max is $2,700 for individuals and $5,450 for families. Individuals 55 or older can make a $700 catch-up contribution in 2006.
Many employers offer flexibility spending accounts for medical expenses (and sometimes child care) that allow employees to set aside pre-tax dollars for medical expenses not covered by the company's health insurance, including premiums and deductibles. Unlike flexible spending accounts, however, HSA contributions and gains can be rolled from year to year--there's no "use it or lose it" requirement--and you retain ownership of the funds even if you terminate employment. If your employer offers a flexible spending account, you should take a description of the account requirements and restrictions when you discuss an HSA with your financial professional.
Because you establish an HSA independent of your employer, these accounts can provide a health care expense "safety net" should you terminate employment (voluntarily or involuntarily). They also provide retirees with another investment vehicle that offers tax deductions for contributions, tax-free growth and tax-free withdrawals for medical expenses. Withdrawals for nonmedical expenses after age 65 are still taxable, and a 10% penalty applies for nonmedical withdrawals before age 65.
If you plan to use HSA funds in the near term, a liquid, interest-bearing account like a savings account may be appropriate. However, if you don't anticipate an immediate need for all or part of your HSA funds, the accounts are self-directed, allowing you to use other investment options. Your financial professional can help you determine which investment vehicle best meets your needs.
According to a 2006 survey by Watson Wyatt and the National Business Group on Health, health care insurance premiums have been rising at two to three times the rate of inflation for the past five years. Understanding the complexities of health savings accounts may be one way to lessen the blow and prepare for the future.
Affordable Health Insurance Family Plan - How Do I Pick The Right Family Plan?
Choosing between family health care plans is not as simple as in the past. Although no plan will pay for every medical expense you come across, they do differ in what they offer for coverage. The majority of health care plans offer ways to keep down the costs of health care.
How do the health care plans differ from one another?
Indemnity insurance - Once you meet your deductible, most indemnity plans pay a portion of what is considered appropriate charges for covered services. The usual split of how much the insurer and insured pays is 80/20. You are responsible for the 80 percent and the insurance company pays the remaining 20 percent. The policy will also cover charges for lab and x-rays, prescriptions as well as care from doctors and hospitals.
Managed Care plans such as; Preferred Provider Organizations (PPOs) allow the insured to choose medical providers that may or may not be a part of the network. If you decide to use a doctor within the PPO network, you will be responsible for a copayment. If you go outside the network you are responsible for a larger percentage of the costs.
Health Maintenance Organizations (HMOs) offer members a variety of health benefits for a set monthly fee. HMOs provide you with a list of doctors from their network so that you can choose a primary care physcian (PCP). When you have chosen your PCP, they will be the core of providing your medical needs. If you were to need a specialist you would first need to obtain a referral from your PCP. If you were to go to a physician outside of the network you would be responsible for the charges, unless of course you or a family member is in an emergency situation.
Point-of-Service (POS) Plans allow members to choose any doctor or hospital that they wish to attend and will still receive a form of coverage although not as comprehensive as the other insurance plans mentioned.
How to choose a plan
Remember that regardless of the plan you choose there will be sacrifices of some sort. So consider what you and your family need for medical coverage. Do you like the idea of your doctor being the one who has to refer you to a specialist or would you prefer to do this on your own? How much have you budgeted for out-of-pocket expenses, deductibles, and the premiums that you will be required to pay? Consider also any life changes that may apply; are you considering starting a family or are you closer to retiring? Does any member of your family have a pre-existing condition, if so this may affect certain insurance plans.
Health Insurance:Finding Your Own Health Insurance Coverage
If you've ever taken the huge leap of leaving that secure 9 to 5 job for the self employed route, you probably know how it feels to have to go looking for your own health insurance plan.
To be sure, most of us at one time or another have worked for a company simply because we wanted the security that their benefit packages provide. Health insurance would be one of the most vital parts of all of this.
Yet with corporate downsizing and layoffs, staying with a company simply for the insurance isn't as secure any more. So if your in position to have to find insurance for yourself here's a few bits of advice that might be of help.
First off, don't be stupid and go without. Some years ago I found myself between jobs and between coverage. I got hurt simply playing a pick-up game of basketball and needed surgery. Unfortunately I had no other option. I couldn't work if I didn't get the damage repaired and I didn't have insurance to cover the cost so I ended up putting it all on a credit card. It took me years to pay the debt off. In particular, if you have a family, you can't afford to go without some form of insurance.
Often right after leaving a company you can still have access to insurance through a company's COBRA option. The company is lawfully required to give you access to the plan. You'll have to pay the monthly premiums of course with no additional assistance from the company, but you may find it more affordable than an individual plan. COBRA plans should be looked at as a short term solution to your insurance situation.
If your self employed, you may want to look at group insurance plans from organizations like the NASE. The National Association of the Self Employed can provide you with more information and you may find some of their rates to be very competitive.
A number of trade organizations and associations may also have benefit plans that could provide you with coverage. If you belong to a trade organization don't hesitate to contact them to see what might be available.
It's also important to compare individual or family plans from a number of companies. Be sure that things such as the stated deductible and coverage guidelines are comparable when looking at the cost. Eventually we found a good plan for my wife and I that is fairly affordable for what we have in coverage.
At one point, I was denied coverage by an insurance company and my wife was leaving her company position to work in her own business. One thing I learned at this time was that many states will provide some type of insurance coverage for you if you have been turned down at some point. The rates are a bit higher than you might have to pay with a standard policy but at least you have coverage. So don't rule out a state funded program if your having trouble getting insurance.
Regardless of what company you go with, remember that's it's very important to maintain health insurance coverage for yourself or your family. You'll never know when you may need it in a time of crisis.
Health Insurance:High-Deductible Health Plans
Last year, in order to setup an HSA, you needed to find a High-Deductible Health Plans that met the following qualifications:
1.A minimum deductible of $1,000 for self or $2000 for family coverage.
2. A maximum out-of-pocket limit of $5,100 for individual coverage, and $10,200 for family coverage.
3. Preventive care can have first dollar coverage (i.e. without a deductible). Precautionary care examples include: periodic health evaluations like annual physicals, screening services like mammograms, routine prenatal and well-child care, child and adult immunizations, tobacco cessation programs, and obesity weight loss programs.
Prescription drugs taken to prevent the starting of a condition for which a person has developed risk factors for can be considered preventive care, like cholesterol-lowering medication. A general rule of thumb for what is or is not preventive care is the care does not include any service or benefit which treats an existing illness or condition.
4. The plan can use co-pays to cover preventive care. Higher out-of-pocket (co-pays and co-insurance) is allowed for out-of-network care.
5. They can't cover prescription drugs before the deductible is met.
HDHP's often offer a better value for money as compared to a lower deductible plan. HDHP premiums are considerably lower, and any out-of-pocket cost risk to can be minimized by funding an HSA to cover out-of-pocket costs up to your deductible. Also, HDHP premiums have not been subject to the kinds of rate increases that traditional health plans have seen over the last few years.
This is not true in all states and for all health plans.
Some have said that consumer-driven health plans, like the HSA+HDHP combo, works best for relatively healthy people. It is certainly true that if you're healthy, and don't use medical services during the year; you'll save a lot of money with a high-deductible plan. But it's also true that CDH plans, applied wisely, can result in investments and greater flexibility for consumers of all kinds. Individuals who are likely to make moderate or heavy use of medical services should be sure to understand the repayment covered under their plan, and should pay special attention to the co-insurance, maximum out-of-pocket, and any exclusions or carve-outs. Healthia's health cost modeling tool can help you decide if a CDH plan will work for you
Health Insurance:Health Insurance
You've heard it before; accidents happen. You may have not paid much attention to it before, but there's a great deal of truth in this oft-quoted statement. That being said, it's important to always have good health insurance, because without it, you may be putting yourself in serious financial straights. Below, we've provided short summaries in order to help you understand the types of coverage out there so that you won't be caught in a regrettable predicament that could cost you and your family for years to come.
Health Insurance...In General. General Health Insurance refers to many different types of insurance policies. These range from policies that cover the costs of physicians and hospitals to those that meet specific needs, such as the necessity to pay for care, long-term. Even disability insurance-which replaces lost wages if you are unable to work due to sickness or accident-is considered health insurance, even though it's not specifically for medical expenses.
However, when the discussion revolves around health insurance, it generally focuses on the type of insurance offered by employers to their employees. This is the kind that covers medical bills, surgery, and hospital expenses and is often referred to as "Comprehensive" or "Major Medical" health insurance.
When the dialogue turns to more general health care coverage, it is more likely that you'll hear terms such as "Fee-for-Service" or "Managed Care". Further, you'll most likely hear about certain kinds of managed care plans. These span the gamut from health maintenance organizations or HMOs to Preferred Provider Organizations or "PPOs", and Point-of-Service or "POS" plans.
While fee-for-service and managed care plans differ in significant ways, in some ways they are parallel. For example, both cover an assortment of medical, surgical, and hospital expenses, while most offer some coverage for prescription drugs, and some include coverage for dentists and other providers. But there are many important differences that will make one or the other form of coverage the appropriate one for you and possibly your family.
Coverage for a group is characteristically offered through many companies, although unions, professional associations, and other organizations also offer it. As an employee benefit, group health insurance has many rewards. Much-although not all-of the cost is frequently absorbed by an employer, as premium overheads are often less due to group purchasing in large groups. In this arena, by enrolling when you first become eligible for coverage, you most likely will not be asked for proof that you are insurable. (Enrollment usually happens when you first take a job, and often during a certain period each year, which is called "Open Enrollment"). Some companies even offer their employees a choice of fee-for-service and managed care plans. Additionally, some group plans also offer dental insurance along with medical.
Health Insurance for the Short-Term. Temporary health insurance is generally a reasonably priced, short term medical plan intended for healthy people who are, in the interim, without health insurance. It can become effective as early as the following day after enrollment, it can be purchased for periods as short as 30 days or up to 180 days, and it's usually paid for in either one single payment or monthly payments.
Temporary health insurance is often utilized by those with specific, short-term needs and generally for individuals who may be:
1. In between jobs or laid off
2. Graduating from college
3. Waiting for Group Coverage
4. Coming off parents' health plan as a dependent
5. Working part-time or temporarily
6. Waiting for permanent health insurance to begin
Insurance for the Individual is also a smart choice if you work for a small company that does not offer health insurance or if you happen to have your own company and self-employed. The advantage to this insurance is that you can customize your plan to fit required needs from the insurance company that you choose. In this case, you should also be a diligent comparison shopper, as coverage and costs differ greatly between all of the companies out there. While assessing policies, you should consider what is covered, what is paid, and how much you're required to pay in deductibles and coinsurance.
A thought to ponder. Now that you have a general understanding about the types of insurance available, one idea holds true; be sure that when it comes to health insurance, you always have some. To be caught in an unlucky predicament without it can not only be a hit to your health, but it can be a dire drain to your wallet, as well.
Friday, September 21, 2007
Health Insurance:Health Care Insurance for Adult
He reported back to me about a week later, in desperation: I am giving up, I am too puzzled. He had taken on an overpowering project with his widowed mother, living in another state. As the only child, and following the sudden death of his father, it was his responsibility to care for his mother.
Protecting your parents assets and health is a huge and intimidating undertaking, which requires a tremendous amount of education and practical application. Our seniors face many diverse responsibilities upon reaching age 65. To name just a few: Estate planning, taxation, Medicare, social security, wills, insurance, and various other legal and financial matters. All of these different areas require expertise from accountants, lawyers, estate planners, insurance agents, home brokers, financial advisors, and others.
Twenty years ago, insurance for elders was sold by senior insurance specialists, with just a handful of companies in each state. The programs were most often Medic gap or Medicare supplemental policies, which covered the expenses not covered by Medicare, including hospital and doctor deductibles, durable medical devices, and no approved Medicare costs. Ironically these specialists did not sell a lot of nursing care policies, even though Medicare paid a national average of less than 2% of these expenses. With the advent of financial and estate planning and more insurance companies entering this market, a broader and diversified product line became accessible to agents, brokers, planners, and seniors.
Part of this new diversification was the home health care plan, sold by itself, and in coincidence with senior health insurance products. The appeal of the home health care policy was that a senior could stay at home and still receive medical and custodial benefits, allowing a person to recover in the comfort of their own home.
This was the answer to a huge problem. The last place an older person wanted to go was a retirement home, or rest home, or, God forbid, the nursing home. It appeared that seniors could now rely on this new improvement without worry of having to move out of their home environment in the event of a health problem.
As with most things, if it is too good to be true. The home health care policy is no exemption. The problem is there is not enough coverage for a lengthy illness or recuperation time. The fact is the new trend is toward an all in one type facility, allowing for a variety of levels of care all in one location. In other words a senior could start off with little or no health care concerns in an independent, less expensive area, and then go to an assisted living, or nursing care facility, all within the same compound.
Health Insurance:An Affordable Health Insurance
With the rising cost of medical treatments, it has become a necessity to have a good insurance scheme. This lowers the burden on the pocket and is perfect for the salaried class.
There are many insurance companies who specialize in affordable health insurance covers. It is better to explore around for the best quote and policies. There are mainly two types of affordable insurance for the consumers. They are:
a) fee for service
b) managed care
An affordable insurance helps one to combat against unexpected diseases or illnesses. It may not be possible for the individual to meet the costs of treatment of a serious ailment. So the affordable health insurance provides the funds needed so unexpectedly costs can be met.
These kind of insurance can be of various types like individual, family and group health insurance. There are many schemes for different age groups.
Low cost or affordable schemes are available for children under nineteen years of age, pregnant ladies, adults with or without families, adults over 65 years of age, womens routine tests with mammogram and pap tests, immigrants emergency health tests and insurance.
Health insurance should be chosen with an eye on its flexibility and whether it is catering to the particular need of the policy holder. Here it is important to mention that no scheme is the best for anyone, some health insurance policies can be better than others.
The first thing that should be looked into is the type of insurance coverage and the cost of the plan. When one is going for the affordable health insurance scheme, choosing the right type of plan is very important.
The next important step is to work out the deductibles and find details about the monthly premium. All insurance companies have a network of physicians, hospitals and pharmacies. The next step is to find out whether any amount will be refund if one goes to a physician not covered by the company’s network and how much will the insurance company pay for the prescription medicines. Majority of the prescription medicines are covered by the insurance companies.
It has been mentioned earlier that there are basically two types of affordable health insurance. The first one, that is, fee for service, means that in this type of coverage the patient must pay a fee to the doctor whenever he or she visits the doctor. The claim can be filed either by the patients or by the doctor.
The second type of insurance, the managed care, is very popular. The company has a network of physicians and the insured has to visit them if necessary. Patients have co-pays which they pay when they visit the doctor.