Marc Hart – Owner of Marc Hart Insurance Services specializes in health savings accounts for individuals, families, small business owners or anyone that purchase there own insurance. For more information please visit www.westcoasthsaplans.com or email Marc Hart at marc@westcoasthsaplans.com
Posts Tagged ‘Premiums’
Why Health Insurance Premiums Won’t Drop Under Obama Health Proposals
When it becomes law, families will save on their premiums,” President Obama declared in his weekly radio address before Christmas, pitching his health care reform. If only that were so. Nobody who tracks health insurance sees any sign of softening premium prices for people who already have insurance, Obamacare or not. Premiums for 2010 were up 10% and are predicted to keep growing at the same rate in coming years.Health insurance is beginning to resemble air travel–where deep-pocketed business passengers subsidize penny-pinching vacationers. Insurance companies, under the measures in Congress, would be forced to take all comers, young and old, healthy and sick. Over ten years they would confront 1 billion in spending on uninsured and newly subsidized customers, costs that would be passed along to the young and healthy. The federal government isn’t going to pick up all of that tab. So those now insured through a private plan at work or one bought individually will have to chip in.
If you’re thinking the legislation will tamp down overall health care spending, reconsider. Policy analysts ranging from the neutral Congressional Budget Office to the HMO lobby see no abatement in the growth rate of health care spending. That sector of the economy is growing at a 7.4% annual rate, says actuarial firm Milliman. Medicare’s chief actuary, Richard Foster, thinks that the Senate bill would expand health spending by 4 billion above current projections.
The premium hikes will result from cost shifting, better known as passing the buck. The House and Senate insurance bills aim to cover their costs in part by cutting annual Medicare reimbursements to hospitals, doctors and drug companies by billion. Those providers will likely try to offset the cuts by negotiating higher rates with private HMOs–which then get passed along through higher premiums. That’s exactly what occurred after past Medicare and Medicaid cuts, according to the CBO analysis. Families USA, a nonprofit group advocating expanded federal involvement in health care, says insured families are already absorbing ,000 a year in costs shifted away from uninsured patients.
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In Glenside, PA, President Obama explains why health insurance reform is a necessity and calls on Congress to put aside politics and hold a final up or down vote on reform. March 8, 2010.
Video Rating: 4 / 5
Keeping Your Health Insurance Premiums Low
Health Savings Accounts offer tax deductions for medical expenses, and the opportunity to set up an additional retirement account. But regardless of any other positive benefit of HSAs, lower premiums are the primary reason that thousands of Americans have chosen Health Savings Accounts as the best way to protect their family’s health and assets. Here are some key suggestions on how to keep your health insurance premiums low.
1. Choose an HSA-qualified plan for lower rate increases.
Average group health insurance premiums rose by 9.6% last year and rose over 10% for each of the previous six years. Individual plans went up even more. Yet it is expected most HSA plans will experience much lower rate increases. A very large study was recently published showing that rate increases over the past year for consumer-driven plans such as HSA plans was only 3.4%. Blue Cross of Minnesota has reported that its HSA customers spent 8% less than their traditional insurance clients. Humana has reported claims’ costs of 4.9% for consumer-driven plans, versus a 19.2% increase in claims for other plans. In fact, average HSA premiums for individuals have actually dropped 19.5% over the last two years.
The reason these plans have lower rate increases is that people who have HSA-qualifying high-deductible health plans are likely to pay closer attention to costs, and take better care of their health. For instance, an HSA owner offered a statin drug to lower her cholesterol may be more likely to request a generic version, or ask her doctor if inexpensive nutritional supplements such as niacin or fish oil may be a solution. These actions save the insurance company money and should result in lower rate increases.
2. Raise your deductible as your HSA account grows.
When you fund your account you build up a financial “cushion” which allows you to raise your deductible as your account grows. Every time you raise your deductible, your premium should go down.
By the way, don’t forget that every time you fund your account you get an instant tax-deduction. When you offset the tax savings against your premiums, you’ll find your net cost for an HSA plan can be very low.
The maximum allowable contribution goes up every year with the rise of the Consumer Price Index. Currently, the individual contribution limit is ,700, and the family limit is ,450. So each year you can deposit greater amounts into your HSA and continue to raise your deductible, if you choose.
3. Stay healthy, so you can switch plans.
All health insurance plans have rate increases, and weve even seen premiums jump on some HSA plans. If a rate increase happens to you, you can switch to a different insurance company but only if you pass their underwriting requirements. If chronic disease develops, you may be stuck with your current plan, and its accompanying rate increases, for eternity. Or at least it may seem that long
If you pay attention to the pharmaceutical commercials, you learn lifestyle really has nothing to do with disease, and it is natural and healthy to be on many medications for the rest of your life, which will then solve your health problems.
If you pay attention to the science, you know the truth is quite different. It appears lifestyle is probably 95% of the picture, and we know the occurrence of degenerative disease can be dramatically reduced and even prevented.
Fortunately, most HSA owners are interested in health, wellness, and disease prevention. After all, theyre paying for their own doctor visits if they do get sick. HSA owners are also “forward thinking” people, and like to plan for their future both financial and physical. You can improve your odds of excellent health with just a few key habits:
Eat very high quantities of fresh vegetables and fruits. Shoot for 35% of your calories. This will lower your risk for diabetes, high blood pressure, heart disease, cancer, and much more.
Limit your intake of sugar and starchy carbohydrates like bread and pasta. The majority of health problems in the U.S. are related to metabolic diseases that involve insulin resistance.
Exercise and lift weights. Exercise guru Jack La Lanne turns 93 on September 26, and he says if you have muscles you never feel old.
4. Compare your plan to other available plans at least once a year, or whenever you get a rate increase.
Often-times people keep their plan much longer than they should, and end up paying too much. If your rates go up, you should compare a wide variety of plans to determine if you are in the right plan for your needs and budget.
By using these four strategies, the typical family can save thousands of dollars in health insurance premiums and still protect themselves against unexpected major medical expenses.
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2008 Presidential Candidate Ralph Nader answers a question about the role of health insurance companies in his national heath care plan. From the Open the Debates super rally in Minneapolis, Minnesota on September 4, 2008. Video by Karen Kilroy – karenkilroy.com
Related “health Insurance” Articles
I am 69 years old and on Medicare. Can I expect any financial help from Medicaid after my savings are gone?
I am 69 years old and on Medicare. Can I expect any financial help from Medicaid after my savings are gone?
Health insurance premiums are at a all time high they are going up at a rate of nearly 15 percent each year. So there has to be away to keep your premiums at a level that is affordable I am going to explain to you how. California has 7 companies that compete for your business and as of the date of this publication there are a lot of new plans out there that are saving people 30 to 50 percent off their health insurance premiums each month I am going to give you some tips on how to do that today.
# 1 Hire a Health Insurance Agent (Health Benefits Specialist)
There are a lot of people that sell health insurance but are not health benefits specialist they maybe your auto insurance agent that happens to sell health insurance but only shows one company make sure you hire an agent that represents a variety of companies. Whether you purchase your policy from an agent or straight from the health company itself the price of your insurance will be same they are regulated by each states insurance commissioner. Therefore by hiring an agent you are going to get an unbiased opinion of all the plans available to you in the state of California as opposed to just the carrier telling you why they are greatest and the best. I work for my clients and not the insurance companies I find my clients the best plan for their needs and budget.
# 2. Switch to a Health Savings Account (HSA) Plan
HSAs are becoming one of the most popular health insurance plans in California. The concept is simple; you pay for expenses below the deductible at a discounted rate and the carrier pays for everything after the deductible. Most HSA plans cover preventative care as a first dollar benefit which means that your deductible is waived. The savings are significant they are typically 50% less expensive then traditional plans. How much could save?
Family Traditional Plan $550 dollars a month for a family of four
HSA Plan – $250 dollars a month for a family of four
Savings of $3600 dollars a year
# 3 Choose A Higher Deductible
Most people when choosing a plan opt for the lowest deductible possible, however, you are paying for that low deductible in the way of higher premiums and coming out ahead in the end. Choosing a plan with a higher deductible can save the average family $1,500 or more. How much can you save?
Family Plan with a 500 deductible – $680
Family Plan with a 2,500 deductible – $315
Savings – $4,380
# 4 Ditch The Co-Pays
Yes, you only pay $25 when you see a doctor but the question is how much are those co-pays actually costing? There are many plans now on the market with no co-pays, however all doctor visits are still covered. You simply pay the network discounted rate, which is usually only $15 to $25 more than the co-pay. How much can you save? Here’s an example:
Family Plan with Co-pays-$425
Family Plan without Co-pays-$290
Savings-$1,620 a year!
# 5 Shop and Compare
There are at least seven (7) major health insurance companies in California each offering 12 plans or more on average. That’s over 84 plans on the market. Well to be perfectly honest there are over 250 plans to choose from in California so you have a great selection of plans. It is a big mistake to think that similar plans have similar price. One carrier could charge $500 per month for a PPO plan with a $1,000 deductible. Another carrier could charge $350 for the same exact plan. So make sure you compare carriers.
# 6 Annual Policy Review
Every year many carriers come out with new plans with lower rates. When you choose a new plan you are typically getting the lowest rates in the market and can save 30% to 60% off your current premiums.
#7 Look at plans with generic only prescription drug coverage
You can typically save 20 percent or more on your health insurance premiums by only getting health plans that have generic prescription drugs costs. So if you are healthy individual looking for coverage not on any medication this could be an alternative for you. More and more drugs now have a generic alternative so another suggestion to save money is to ask your doctor if they have a generic version of the drug you are on.
I hope you have come away learning something you didn’t already no on how to keep your health insurance premiums lower in the state of California. To get your instant online health insurance quote click here: Instant Health Quote
This digital document is an article from Detroiter, published by Detroit Regional Chamber on April 1, 2009. The length of the article is 418 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: 5 tips: taking the sting out of health insurance premiums.(Health Care Trends)Author: Jim SchaferPublication: Detroiter (Magazine/Journal)Date: April 1, 2009Publisher: Detroit Regional ChamberVolume: 100 Issue: 3 Page: 46(1)Distributed by Gale, a part of Cengage Learning
Excerpt. © Reprinted by permission. All rights reserved.
It’s no secret: the cost of providing health insurance benefits is high enough to give everyone headaches-not to mention straining business budgets and employees’ paychecks. Rather than battle the insurance blues, however, there are a number of ways to trim costs. [ILLUSTR…
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Hi, I was told it’s normal for long term care insurance premiums to be raised every five years, even if I buy the more expensive coverage. Is this true, or are there policies that are locked in at a specific rate? Thanks for your assistance.
I am 69 years old and on Medicare. Can I expect any financial help from Medicaid after my savings are gone?
The part of the tax code that prevents you from deducting long term care insurance is the same part of the code that doesn’t say you can deduct it.
The only things that are deductible are the things the tax code says are deductible. Since the code doesn’t address a deduction for long term care insurance then it is not deductible.
My health insurance is through my employer but I have to pay part of the premium and it is deducted from my paycheck each pay period. I am filing my taxes and am being asked if the premiums are paid for with after-tax dollars. Any answers?
