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Questions and Answers About Health Insurance (part 1)

admin — Sat, 22 Aug 2009 23:48:19 +0000

Frequently Asked Questions About Health Insurance

1. Why do you need health insurance?

As medical care advances and treatments increase, health care costs also increase. Thepurpose of health insurance is to help you pay forcare. It protects you and your family financially in the event of anunexpected serious illness or injury that could be very expensive.

Inaddition, you are more likely to get routine and preventive care ifyou have health insurance.
You need health insurance because you cannot predict what yourmedical bills will be. In some years, your costs may be low. In otheryears, you may have very high medical expenses. If you have healthinsurance, you will have peace of mind in knowing that you are
protected from most of these costs.

You should not wait until youor a family member becomes seriously ill to try to purchase healthinsurance.
We also know that there is a link between having health insuranceand getting better health care. Research shows that people withhealth insurance are more likely to have a regular doctor and to get care when they need it.

2. How do you get health insurance?

Most people get health insurance through their employers or organizations to which they belong. This is called group insurance.
Some people do not have access to group insurance. They may choose to purchase their own individual health insurance directlyfrom an insurance company. Many Americans get health insurancethrough government programs that operate at the national, State,and local levels.

Examples include Medicare, Medicaid, andprograms run by the Department of Veterans Affairs and Department of Defense.

Group Insurance:Group health insurance is typically offered by employers. Or, if you are a member of a union, professional association, or other group,you may be able to get group coverage through that organization.
Some employers allow employees to choose between several plans,including both indemnity insurance and managed care. Otheremployers offer only one plan. Some group plans offer dental and/or vision benefits as well as medical benefits. So it is important to compare plans to find the one that offers the benefits you need most. Once you enroll in a health insurance plan, you usually cannot change to another plan until the next open season, usually set once a year.

When group health insurance is an employee benefit, your employer usually pays a portion or all of the premiums. This means your costs for health insurance premiums will be lower than they would be if you paid the entire premium alone.
When you get group insurance through membership in an organization, you usually will benefit from being a member of a large group. You may pay less for premiums than an individual would pay.

However, the organization often does not pay a share of the premium, meaning you may be responsible for paying the entire premium yourself.

Individual Insurance: If you are self-employed or your employer does not offer health
insurance, you may not have access to group insurance.

You may,however, be able to purchase individual coverage directly from an insurance company. When you buy your own health insurance, you will be responsible for paying the entire premium rather than sharing the cost with an employer. You should shop around to find a plan that fits your needs at a price that you are willing to pay.

Most self-employed workers are able to deduct their health insurance premiums from their Federal taxable income, providing them with an important tax saving. Most States also offer similar tax preferences. If you are self-employed and buy individual health insurance, you should consult a tax advisor to find out if you are eligible for this deduction.Insurance plans differ greatly from one company to another and,within an insurance company, from one plan or product to another.
Some plans have multiple products (options) from which you can choose; read carefully through the “fine print” to be sure you understand the various choices.

3. Which type of health insurance is right for you?

Whether you are eligible for group insurance or choosing an individual plan, you should carefully compare costs and coverage.Be sure to compare:
1. Premiums.
2. Coverage/benefits.
3. Access to doctors, hospitals, and other providers.
4. Access to after hours and emergency care.
5. Out-of-pocket costs (coinsurance, copays, anddeductibles).
6. Exclusions and limitations.

Even if you do not get to choose your health plan—for example, if your employer offers only one plan—you still need to understand your coverage. What kind of services are covered by the plan? What steps do you need to take to get the care you and your family
members need? When do you need prior approval to ensure coverage for care (for example, elective hospitalization for scheduledsurgery)? How are benefits paid; do you have to submit a claim?
Make sure you understand how your plan works. Don’t wait until you need emergency care to ask questions.

If you are choosing between indemnity and managed care plans,remember that they may differ in several important ways, including:
• How you access services.
• How you obtain specialty care.
• How much and sometimes how you pay for care.
Despite these differences, indemnity and managed care plans share some features. For example, both types of plans cover a wide array of medical, surgical, and hospital services. Most plans offer some coverage for prescription drugs. Some plans also have at least partial
coverage for dentists and other providers.

The major difference between indemnity (nonnetworkbased coverage) and managed care
plans (network-based coverage) concerns choice of doctors, hospitals, and other providers; out-of-pocket costs for covered
services; and how bills are paid.
Be sure to check on the physicians and hospitals that are included in the plan.

Indemnity Insurance:This type of coverage offers more flexibility in choosing doctors and hospitals. Usually, you can choose any doctor you wish, and you can change doctors at any time. Although you usually will not need a referral to see a specialist or go for x-rays or tests, you may need paperwork, such as your medical records, from your primary care physician.

Be sure to ask your doctor if there’s any paperwork that you will need to take with you.
If you have indemnity insurance, your plan only pays part of your medical bills. You are responsible for the rest. Your out-of-pocket costs are likely to be higher for certain services than with some managed care plans.

Usually, you will need to spend a certain amount each year before your plan begins to pay benefits. This amount is called a deductible.

Deductibles are the amount of the covered expenses you must pay each year before your plan starts to reimburse you. Deductibles might range from $100 to $300 per year per covered person or $500or more per year for a family.
If you have an indemnity plan, you may have more paperwork to do.Some doctors will submit the claim for you. Once the doctor receives payment from the insurance company, he or she will bill you for thedifference.

With other doctors, you will have to pay the entire bill and file a claim with your insurance company to be reimbursed.
Indemnity insurance pays a portion of the bill—usually 80 percent,after the deductible has been met, although this may vary. You pay the remainder, usually 20 percent of the total bill. This is called coinsurance.
Indemnity policies typically have an out-of-pocket maximum. This means that once your expenses reach a certain amount in a given calendar year, the fee for covered benefits typically will be paid in full by your insurance plan.

If your doctor bills you for more than the reasonable and customary charge, you possibly may have to pay a portion of the bill. If you have Medicare coverage, there are limits on
how much a physician may charge you above the usual amount.
There also may be lifetime limits on benefits paid under the policy.Most experts recommend that you look for a policy with a lifetime limit of at least $1 million. Anything less may not be sufficient.

Managed Care:More than half of all Americans who have health insurance are enrolled in a managed care plan. Managed care plans usually cover a wide range of health services. With these plans, costs are lower when patients use the doctors and other providers who participate in the plan (network providers).
In most cases, you will not have to fill out any insurance forms or submit any claims to the insurance company when you usein-network providers. Usually, you will pay a copay(typically $10to $20 for an office visit) each time you go to the doctor or hospital or fill a prescription.

Your copay may vary depending on whether you see your primary care doctor or a specialist and whether you receive a generic or brand name prescription drug. Most managed care plans have a list of drugs that they cover, called a formulary.

Your copay for prescription drugs will probably depend on whether you are getting a generic drug, a brand name formulary drug, or a brand name drug not on the plan’s formulary.
For example, the copay might be $10 for a generic drug, $25 for a formulary drug, and $40 for a brand name non-formulary drug. Be sure to check the formulary of the plan you are considering to make sure it will cover any routine prescription drugs that you and your
family members take.
Some managed care plans have a mail-order pharmacy option. This means that you send your doctor’s prescription for routine maintenance drugs (for example, blood pressure medicine, drugs to control blood sugar, and other drugs used on a regular basis) to the
mail order pharmacy.

In most cases, you will receive a 3-month supply of your medication by return mail. You still pay a copay, but your cost may be lower than it would be at a local retail pharmacy.
If you choose to enroll in a managed care plan instead of an indemnity plan, you may have lower out-of-pocket expenses for health care, as long as you see doctors who are part of the plan (innetworkproviders).
There are three main types of managed care plans:
• Health maintenance organizations (HMOs).
• Preferred provider organizations (PPOs).
• Point-of-service plans (POS).
All three types of managed care plans have contracts with doctors,hospitals, and other providers. They have agreed on certain fees with these providers. As long as you get your care from a plan provider, you typically will be responsible only for any cost-sharingyour plan requires.

Health Maintenance Organizations:HMOs have long been known for a focus on prevention and wellness. Traditionally, HMOs required that you receive most of your care from one primary care physician who is aware of your total health picture. If you belong to an HMO, usually you must receive all of your medical care from network providers, except inemergencies.

HMOs usually have flat copayments rather than deductibles and co-insurance and no lifetime limits on coverage.
After you enroll in an HMO, you typically will need to select a primary care physician who will be responsible for coordinating all of your care. Primary care physicians may be family practice doctors, internists, pediatricians, obstetricians-gynecologists, or general practitioners.
If you become ill, your primary care doctor will see you first, unless it is an emergency. Your primary care doctor will give you a referral if he or she thinks you need to see a specialist. Usually, your HMO will not provide coverage for a specialist unless you have this referral.
In most cases, you must see a specialist who participates in your HMO.

Sometimes, in special circumstances, HMO patients may be referred to providers outside the HMO network and still receive coverage.
If you need to be admitted to the hospital and it is not an emergency, you may have to obtain precertification from your plan.
In most cases, your physician or hospital will take care of this for you. Non-emergency hospital care may not be covered without precertification. In case of an emergency admission, you or a family member, your doctor, or your hospital will need to contact your
plan within a certain timeframe (usually within 48 hours of admission) to obtain written confirmation of coverage for the hospital stay.

Today, some HMOs do not follow this “primary care model.” So, if you are considering a traditional HMO, it is important to compare the features and requirements among the various HMO plans that are available to you.

Preferred Provider Organizations and Point-of-Service Plans:PPOs and POS plans combine features from both fee-for-service and HMOs. PPOs and POS plans offer more flexibility than HMOs in choosing physicians and other providers. POS plans have primary care physicians who coordinate patient care, but in most cases, PPOs do not. Premiums tend to be somewhat higher in PPOs and POS plans than in traditional HMOs.
Generally, the greater the emphasis on in-network care, the lower the premiums and the more comprehensive the benefits will be.
Consumers and employers make tradeoffs, deciding which is more important: a greater choice of providers or a lower premium.
If you are enrolled in a PPO or POS plan, your out-of-pocket expenses will be less if you use a provider who is part of the plan (a network provider). However, you will still get some reimbursement if you receive a covered service from a provider who is not in the network. In this case, your reimbursement will be at a lower level than if you used an in-network provider.
If you choose to go out of network for your care, you may have to meet a deductible before your plan begins to pay benefits. Also, you may have to pay the bill yourself and submit paperwork to the plan
for reimbursement of covered expenses.
If you are in a PPO, you will not need a referral to see a specialist or get other types of care, but you may need to take some paperwork with you. Be sure to ask your doctor if you will need a written order or other documentation when you are referred to a specialist, laboratory, or other provider.
When you go out of the plan’s network for care, PPOs and POS plans work like fee-for-service plans and charge you coinsurance.

For PPOs, this coinsurance may be different than the coinsurance charged for in-network providers. Also, you may have to pay the total cost of care right away and then file a claim with your insurance company to get the allowable reimbursement for out-ofplan care.

Getting Cheap Auto Insurance For Your Son

admin — Sun, 09 Aug 2009 07:44:48 +0000

Getting Cheap Auto Insurance For Your Son
Picture it… 2006 Your teenage son has just obtained his drivers license and you as a parent are now faced with the task of finding cheap auto insurance to cover him and protect you both.

Insurance premiums can vary dramatically. Keep reading to find how to you can find a good cheap auto insurance policy.

Let’s face it. At this age, your teenager hasn’t had the experience necessary for insurance companies to consider them anything but a high risk. But there are a few things you can do to find good cheap insurance and help keep your premiums down.

Knowledge is power. And it’s our responsibility as parents to pass on this knowledge to our children.

Driver Safety
The first and most important thing you as a parent need to stress to your newly licensed teenager is the importance of safety. Lack of safety is the cause of too many unnecessary deaths in the United States and other countries every year.

If you can’t impart this information to them, send them to a driving school where they can learn from professionals. Most highschools offer their students a drivers education class.

Clean Driving Record
Your teenagers driving record will have a direct impact on the cost of your insurance premiums. With no violations or accidents, the premiums will decrease over time.

Type of Vehicle
If your teenager wants a 2 door red sport about, be prepared to pay a hefty increase in premiums. Cars with 2 doors are considered sports cars and stastics show us that red cars are involved in more accidents than any other color. Cheap auto insurance may not be an option for you with this choices.

Safety Features
Choose a vehicle that is rich in safety features and well built to help reduce your costs.

Deductables
You can also reduce your rates by selecting a higher deductable. Generally the higher the deductable, the lower the monthly premium.

Discounts
When you’re searching for cheap auto insurance and getting quotes from various companies, find out what discounts are available for things like, multiple car policies, drivers education credits, defensive driving coarses completed and clean driving records. The competition in the automobile insurance industry is fierce. Some companies are willing to offer bigger discounts than others.

Finding Cheap Auto Insurance Online
The easiest way to zero in on a company who offers cheap auto insurance is to get quotes from more than one company and compare their offers. Esurance.com and Insurance.com are two great places to do this.

Tips For Getting Cheap Auto Insurance Rates

admin — Sun, 09 Aug 2009 07:40:51 +0000

Tips For Getting Cheap Auto Insurance Rates
Getting a quote for auto insurance online is easy… but finding cheap insurance can be more of a challenge. It takes diligence and knowledge.

Here are a few tips to help you find the cheapest auto insurance available.

Safety Features
Make sure your vehicle is well built and “safety” feature rich. You should get cheaper premiums for adding anti-theft devices, car alarms or a good tracking system since these items reduce the risk of your car being stolen.

Defensive Driving
Take a defensive driving class. Certification will help you in your quest to locate cheap auto insurance and can reduce your premium for up to three years.

Comparing Rates
The automobile industry is fiercely competitive. Premiums can vary by as much as 300% for the same coverage. Be sure you are comparing apples to apples on the features you need the most when searching for cheap auto insurance.

Complete Application
If you don’t complete the application in full, the insurance companies are not going to give you a quote for their cheapest auto insurance and you won’t find out about any of the discounts you may be eligible for. You’ll simply get a higher rate quote by default. Be sure to enter your marital status, how many licensed drivers are in your home, your car’s safety features, your zip code, the miles you drive, etc.

Increase Your Deductible
You can also reduce your rates by selecting a higher deductible. Generally the higher the deductible, the lower the premium. Your savings can be as much as hundreds of dollars by increasing your deductible from $250 to $500.

Cut Back on Your Miles
If you travel less than an average of 40 miles a day, you’ll more than likely qualify for a low mileage discount. If you must travel more, car pool or use the public transportation one or two days a week to reduce the miles you drive.

Color of Your Car
Statistics tell us that red cars are involved in more accidents than any other color. If you want to find the cheapest auto insurance, avoid buying a red vehicle.

Who Drives What Car the Most?
Compare quotes with the man as the main driver and the woman as the second driver and vice versa on each of your vehicles. Always, place your younger drivers (teenagers) on the safest vehicle you own, such as the family station wagon or the family car. You’ll never find cheap auto insurance by putting your teenager on a sporty little two door vehicle.

Top 5 Ways To Save Money On Your Auto Insurance

admin — Sun, 09 Aug 2009 07:13:03 +0000

Top 5 Ways To Save Money On Your Auto Insurance.
Auto insurance is one of those must-haves in life. In most states, it is required by law that you carry at least the minimum coverage. There’s no way around this, so you might as well take advantage of the money-saving tips below to make the most of your insurance experience.

Tip Number One: Consider Your Vehicle’s Value:

Let’s face it, automobiles depreciate (or lose value) very quickly. When you drive your vehicle from the car lot brand new, the “new” value goes down suddenly to a “used” value. No matter how well you take care of your car, the value will decrease tremendously over a short period of time.

If you’ve paid off all debts owed on your vehicle, find out from your previous lender the estimated book value. If this amount equals the same or less than what your collision insurance premium is going to cost you, then there’s no reason to carry collision coverage. You would basically be paying the total value of your car each year, whether you have an accidentor not. You can save tremendously on your auto insurance premium by leaving off the collision if this is the case with your vehicle.

Tip Number Two: Avoid Traffic Tickets:

Speeding tickets or moving violations are the number one causes of high insurance rates. When you drive at high speeds or disregard traffic rules, you are considered an “at-risk” driver, and your insurance rates are raised for several years as a result. Driving safely and following the rules of the road will keep your insurance rates at a low and enjoyable amount.

Tip Number Three: Know Your Coverages:

There are some coverages that may not be necessary, depending on where you live or the type of vehicle you own. For example, if you live in a large city where auto theft is common, then theft insurance coverage might be wise. However, if you live forty miles from the nearest town on a high mountain where theft is very rare, then there’s no need to pay the additional premium for this type of coverage.

There are many coverages which are optional, but still helpful. You’ll need to carefully examine each coverage to decide if it’s needful or not. If your insurance company offers you “full coverage”, find out exactly what’s included. It might be cheaper to pay for only a few of the options separately if you don’t need all of the included coverage. This will depend on your needs, car value, etc.

Tip Number Four: Auto Insurance Deductibles:

Although high deductibles often get a negative response from consumers, they can actually work to your advantage and save you tons of premium money each year. The concept behind a deductible is to place more of the responsibility on the driver and less on the insurance company. In turn, your premium can be substantially less each year.

A $1,000 deductible amount seems extremely high, but if it saves you $200 per year on your insurance premium, it’s well worth it! Keep in mind that the deductible will be due only if you do have an accident where insurance is needed. Otherwise, you get to enjoy the lower premiums year after year.

If you select a policy with a high deductible, you might want to put some of your premium savings into an emergency fund, so you’ll have some or most of your deductible if an accident does occur.

Tip Number Five: Insurance Comparisons:

Another way to save money is to make comparisons before signing on for insurance. You’ll not only want to compare policy options, but also insurance companies and pricing.

Note of Warning: Be careful not to sign up too quickly if a very low price is being offered. Get some references if possible, or ask around to find out if someone else has had experience with the company. Some companies who boast low prices offer the worst customer service, and take a very long time to process claims, so use caution at all times.

Utilizing online resources is a great way to compare California insurance companies. You might also find discount offers online which provide additional savings.

When choosing an insurance company and selecting your coverage, use these simple tips to save money on the premium while also getting a great plan to meet your needs

Top 10 Things to Know About Life Insurance

admin — Sun, 09 Aug 2009 06:00:33 +0000

Life insurance can be a great way to get protection for now and to plan for the future. After all, we want to make sure that our plans and loved ones are taken care of for as long as possible. Doing research ahead of time helps you get the best possible coverage at the right price. Here are some helpful facts and ways they can help you.

1. Shopping around can save money

As with most insurance, when it comes to life insurance, it pays to shop around because premiums can vary widely. And thanks to the Internet, it’s now easier than ever. From research, to quoting, to buying a policy, there’s never been so much information available. Even if you need to speak to an agent or company, shopping on the Internet first can make your discussion more efficient.

2.Having enough coverage is crucial

If you need life insurance enough to buy it, you also need to make sure you’re not underinsured. It’s important not to have too little coverage, because then you won’t get the benefits you need. If you don’t think you can get affordable life insurance, explore your options, because it’s often cheaper than you’d expect. However, if you can’t afford all the insurance you need right now, start with a smaller amount. You should be able to buy more at a similar price when you can afford it.

3. The healthier you are, the better the rates

It’s true—healthy people get better rates on life insurance. You will be asked to pay a higher rate for anything that shortens your life expectancy (e.g., smoking, taking regular prescriptions, engaging in risky activities, and being overweight). Consider what small lifestyle changes you can make that will improve your health and possibly your rates.

4. Buying sooner rather than later can help

If you’ve been putting off purchasing life insurance because you don’t want to pay the premiums, you may be doing yourself a disservice in the long run. The younger you are when you purchase life insurance, the lower your premiums will be. In addition, it’s harder to get life insurance if you have some of the conditions that come with growing older.

5. It’s important to regularly review your coverage

The end of one year or the beginning of the next is a good time to examine your insurance needs. Any life change signals the need for a review of your overall financial plan. When it comes to life insurance, you’ll want to make sure your coverage still matches the changes you’ve made. Marriage, the birth of a child, and impending retirement can all have an effect on the insurance you need and the coverage amount that’s appropriate.

6. There are different types of life insurance

Different types of life insurance have different characteristics and are intended to accomplish different things. For instance, term life insurance is generally designed to provide the maximum amount of protection for the smallest premium dollar, but only for a set period. On the other hand, cash value life insurance offers benefits for your entire life and an investment and savings component, although at a much higher premium cost. In the majority of cases, term life insurance is the better choice.

7. You might pay more by choosing monthly premium payments

You may not realize it, but your life insurance might cost more if you pay your premium in monthly installments. Many insurance companies offer a discount if you pay your premium annually rather than monthly. Although the overall cost and benefits of the policy are more important than getting a discount, you might get a lower price by paying annually.

8. You shouldn’t rely solely on the life insurance offered by your employer

Many employers offer their employees group life insurance. However, this coverage is usually not enough to adequately meet your life insurance needs. More importantly, group life insurance policies from your employer are not portable, meaning that if you leave your job, you lose your life insurance coverage.

9. You should tell the whole truth and nothing but the truth

If you lie or omit information on a life insurance application, your life insurance company may be able to terminate your coverage. They may also be able to charge you for the higher premiums you should have been paying, or deny claims. For this reason, make sure to answer all questions fully. There are many different life insurance companies, and even if you don’t qualify for the best rate from one of them, you may still be able to get a good rate from another.

10. Buying more can be cheaper

Life insurance usually costs progressively less per thousand dollars at higher coverage amounts (e.g., $250,000). That means doubling your coverage generally won’t double your premium. If your life insurance needs increase, be sure to explore your options. It may not cost as much as you think to buy more coverage