Blog — Page 11

7 tips for lowering your medical bills— even if you have health insurance.

February 11, 2016 by Frank West

Having insurance may make it easier to get health care, but that doesn’t always translate to medical bills you can afford. High deductibles, copayments and coinsurance mean some people are avoiding medical care altogether to save money. But regular medical care is important, and you shouldn’t have to sacrifice your health to save money. By tackling your health care strategically, you may be able to avoid that tough decision.

More than 90 percent of Americans have health insurance, leaving 29 million still without coverage, according to the latest data from the federal government. But in a 2014 Associated Press survey of insured adults, one in four said they were not confident they could afford care if they or someone in their family had an unexpected medical need.

If you fear that a future medical expense may too steep, the following steps may help:

1. Find the right plan.
Saving on health care begins with selecting the right insurance plan. Consider how much the monthly premium will cost, but don’t choose your plan based on that factor alone. Instead, evaluate all of your options.

A plan that trades lower premiums for higher out-of-pocket cost — like a high deductible health plan (HDHP)— may make sense for someone with relatively few expected medical needs. Someone with a chronic condition, however, could save more with a plan that has higher premiums and lower deductibles, copays and coinsurance, as he or she will be going to the doctor more often.

Consider your medical needs for the coming year, and use them to estimate how much you’d spend with a few different plans.

2. Visit only in-network providers.
Insurance plans contract with groups of doctors and facilities to form a network that offers lower rates for members. When you use providers within that network, your care is covered at a higher rate. If you venture outside, you’ll have to pay more.

For example, one visit to an in-network family doctor for acute illness could result in a $35 copay, with your insurance picking up the remainder. A visit to an out-of-network doctor for that same illness could cost about $150, or the entire billable cost.

Always check your insurer’s website and search for doctors under your specific plan’s network.

3. Take advantage of FSA and HSA offerings.
Flexible spending accounts (FSAs) and Health Savings Accounts (HSAs) can help you budget for medical expenses while providing tax benefits. If your employer offers one, sign up. When deciding how much to contribute, estimate your medical expenses for the year and go from there. If you have a deductible, set aside at least that much.

A few important points:
● FSAs are— with few exceptions— “use it or lose it” accounts, so estimate your contribution carefully because if there are funds left at the end of the year, you may lose that money.
● HSAs are only available for people with qualifying high-deductible health plans. If you have such a plan, but your employer doesn’t offer an HSA, you can open one yourself through an outside financial institution.
● Unlike FSAs, an HSA is your account and the balance can be carried over from year to year, and even follow you as you change jobs.

5 Ways Your Group Health Insurance Plan May Change in 2016.

February 11, 2016 by Frank West

Most employers are passing along at least some of the premium hikes. But you may see more generous incentives if you participate in wellness programs.

Employers are just starting to announce their health insurance options for 2016, and you may need to make your decisions during open enrollment in the next month or two. The National Business Group on Health recently came out with its annual survey of large employers, which offers the first glimpse of the changes employees are likely to see in their health plans for 2016.

1. Higher premiums. Large employers expect their health care costs to increase by about 5% for 2016 – the same size increase they expected in 2014 and 2015. They plan to pass along some of the extra cost to employees but more of it to dependents, with employees contributing 20% of their own premiums and 24% of the premiums for dependents (higher-income employees may pay more). About one-third of the companies plan to add a surcharge for spouses who could get coverage elsewhere but don’t. But very few (only 4%) plan to exclude spouses who have similar coverage available through their own employer.

2. More high-deductible health plans. Employers are continuing to try to contain rising costs by forcing employees to take more control of their health care: 83% of large employers plan to offer a consumer-directed health insurance plan in 2016 (primarily high-deductible health insurance paired with a health savings account). Half of the employers plan to offer the high-deductible plan as an option, and 33% plan to offer it as the only option. More than half contribute to employees’ HSAs, giving them tax-free money for medical expenses; some add more if you participate in a wellness program or take a health risk assessment. For more information about HSAs, see FAQs About Health Savings Accounts

3. Restrictions on expensive drugs. Employers identified the cost of specialty drugs as one of the major causes for health care cost increases, and they’re imposing more restrictions on coverage. More than three-quarters of the employers surveyed plan to use prior authorization for some of these specialty medications – requiring physicians to fill out forms explaining why you need the specific drug. Three-quarters plan to use step therapy, covering the drug only after you’ve tried a list of less-expensive medications first.

4. New telemedicine options. Nearly three-quarters of the employers will offer telemedicine, which provides virtual visits with a doctor, as an option. “It’s still primarily phone-based, but the video component is starting to take off,” says Karen Marlo, vice president of benchmarking and analysis for the National Business Group on Health. “You can take a picture of a rash with your phone and e-mail it to someone who can look at it, for example. It’s a good way to provide good quality care at a lower cost, and it improves access in parts of the country where you have to travel a long distance to go to a physician.” A telemedicine doctor’s appointment may cost $40 or $50, while an actual office visit may cost $150.

5. Cash for wellness programs. Employers continue to focus on plans to improve your health, which they hope will ultimately help lower their medical expenses, and they’re giving employees more incentives to participate. Thirty-nine percent plan to offer a break on health insurance premiums or cost sharing for employees who participate in a wellness program, health assessment or biometric exam. Thirteen percent plan to offer breaks for participating in a disease management program, which provides special care and resources for people with complex conditions, such as diabetes. You may also get more money in your HSA: Nearly one-third of employers plan to contribute to an HSA for employees who complete a wellness or health education program, and 8% plan to make HSA contributions if you achieve a health goal.

Filed Under: Group Health Benefits, Group Health Insurance Tagged With: Group Health

DENTAL INSURANCE.

February 11, 2016 by Frank West

https://www.webprez.com/7540/83

Filed Under: Dental Insurance Tagged With: Dental insurance plans

Why you need accident insurance.

February 11, 2016 by Frank West

There are few takers for accident insurance, even though it comes relatively cheap. Given the spate of accidents, people are well advised to not ignore it.

What it covers: Any accident—slipping on the stairs, falling, breaking an ankle during a football match, receiving burns while bursting firecrackers on Diwali, or getting electrocuted by a faulty appliance. A comprehensive plan covers the poli- cyholder against all such perils.

Rider or standalone policy: Most riders with life insurance policies pro- vide only a basic accidental death and permanent disability protection. On the other hand, a standalone comprehensive policy covers various kinds of losses, including income loss, temporary disablement and hospitalisation.Also, the coverage offered by a rider is linked to the base sum assured and cannot exceed a certain level. Riders also cost more than standalone policies.

Filed Under: Accident Insurance Tagged With: Accident Coverage

6 Things You Didn’t Know About Long-Term Care Insurance.

February 10, 2016 by Frank West

When you think of long-term care insurance, what comes to mind? Unfortunately, some people hold certain misconceptions or have an unfavorable opinion of long-term care insurance, largely stemming from issues related to its early days. But that was then. Today, there are more options focusing on straightforward and flexible long-term care solutions. Let’s take a look.

1. You decide where care is received. One of the most common myths is that long-term care insurance only provides nursing home care, and nothing is further from the truth. It provides home care for those who prefer to “age in place,” as well as care at adult day care, assisted living facilities and hospice centers. In fact, most newly opened long-term care insurance claims are for home care, according to the American Association for Long Term Care Insurance (AALTCI).

2. Benefits can be tremendously flexible. In addition to options for where care is received, most long-term care insurance policies offer greater flexibility in the types of services available, such as home modifications like installing grab bars or a wheelchair ramp to help you stay at home longer and safer; or other care-related products and personal supplies, like a lift chair or hospital bed.

3. It supports family caregivers. Long-term care insurance recognizes the important role family caregivers play in long-term care situations by offering options that can make it easier for families to care for the ones who cared for them. Most policies provide caregiver training for family members, which helps ensure care recipients are getting the best care possible. Other policies go the extra mile by recognizing family caregivers, and even family friends who provide care, as informal caregivers, making their time and services reimbursable under the policy.

4. It offers shareability for couples. Many long-term care insurance policies offer an optional benefit commonly known as “shared care,” which allows couples to share their coverage and maximize their benefits. Here’s how it works: if one spouse exhausts his or her benefits, he or she can begin using the other spouse’s benefits. This provides couples with peace of mind knowing that their coverage will be there if care is needed for longer than expected. It typically also includes a built-in protection to ensure a surviving spouse can still receive long-term care insurance benefits.

5. It’s not “just for older people.” While it’s a critical part of retirement planning and important protection for your later years, the younger you are when you apply for long-term care insurance, the better. Age and health are two of the most important factors when applying, so applying at a younger age will help make it more affordable, and you are likely more insurable from a health perspective. Additionally, accidents and illnesses can happen at any age and include the need for extended personal care. Planning ahead can really pay off.

6. Long-term care insurance carriers paid $7.8 billion in benefits last year. According to AALTCI, carriers paid a record $7.8 billion in claim benefits to 250,000 individuals in 2014, up from $7.5 billion the previous year. You can interpret this number a couple of ways: People are living longer and more care is needed, or the cost of care is increasing, which are both true. But it also shows that long-term care insurance is working. It’s helping families provide care for their loved ones in a setting that they prefer and protecting their finances.

Filed Under: long term care insurance Tagged With: long term care

4 Financial Tips to Keep Your Family Safe.

February 10, 2016 by Frank West

It’s tough to get our financial house in order, not because it’s especially hard, but because it’s … boring? Tedious? The last thing we want to spend time on? To remedy that, here are four tips that you can take on and accomplish:

1. Make sure you have life insurance—or enough of it. Do you really need life insurance? Well, answer this question to find out: Would your loved ones suffer financial if something happened to you? If the answer is yes, you need life insurance. Then comes the question, how much? There are a number of factors that go into calculating how much life insurance you might need. But it doesn’t have to be difficult. Instead, use this online Life Insurance Needs Calculator, and in just a couple of minutes you can have a working idea of the amount you need. If you already have life insurance, why not use this calculator to make sure you have enough!

And don’t let cost—or actually perceived cost—stop you from getting coverage. Did you know that 80% of people overestimate how much life insurance costs? And those under 25 think it’s four times more expensive than it actually is. Let’s frame it this way, say you’re 30 and in good health, a 20-year level term life insurance policy with $250,000 of coverage may cost around $13 a month. That’s the equivalent of a few Starbucks drive-through lattes. Here are a number of ways you can get coverage or search for an agent if you don’t have one.

Would you like to your ex-spouse to get your life insurance if something were to happen to you because you forgot to change the beneficiary on your policy?

2. Review your life insurance beneficiaries. Would you like your ex-spouse to get your life insurance if something were to happen to you because you forgot to change the beneficiary on your policy? Would you like the money to get tied up in court because you named your minor children as the beneficiaries? These are missteps that happen more than you think. Add to that the fact that people may have more than one policy—for example one through the workplace (a group policy) and one that they bought individually.

This is exactly the type of thing that a life insurance agent or advisor can help you with. And it won’t cost you anything to talk to them about it. Plus, if you’ve gone through tip #1, they can double check that the amount of coverage you came up with meets you needs. Also, it’s honestly a lot less hassle to have someone who knows what they’re doing help you out, and isn’t that what we’re trying to achieve here—get it done?

3. Don’t skip disability insurance. Many people aren’t really familiar with what disability insurance is and what it does. Basically, it replaces a portion of your income if you’re unable to work due to a disabling illness or injury. Why is that important? Think about how long you could make ends meet—pay rent or the mortgage and all your monthly bills if your paycheck suddenly disappeared. A Life Happens survey found that a majority of those who work wouldn’t make it more than a month before they’d have to make some serious financial sacrifices. Again, an online calculator can help; get started with this Disability Insurance Needs Calculator.

So, how do you get it? Your employer may offer disability insurance coverage through a group plan. If you’re not sure, contact your HR department or benefits manager to find out what kind of coverage you have (if any). If you don’t have coverage or need more than is offered through work, buying your own disability insurance policy is worth considering. Unlike group coverage, privately owned insurance stays with you even when you change jobs.

Also keep in mind that most people overestimate what the government will pay or cover if something were to happen. According to the National Safety Council, 73% of long-term disabilities are a result of an injury or illness that is not work-related and therefore wouldn’t qualify for Workers’ Compensation. And if you were hoping for Social Security disability benefits, know that about 45% of those who apply are initially denied, and those who are approved receive an average monthly benefit of around $1,100, which would leave you living at about the poverty level.

4. Automate your emergency fund. While not as fundamentally critical as the above tips, this will probably have the most impact on your day-to-day life. Everyone one of us runs into unexpected events that are costly—a major car repair, a leak in the roof, a job loss … the list, as you know, can seem endless. To give yourself peace of mind and bit of cushion, set aside a certain amount each month—it could be $50 or $500, depending on your financial situation—and have it automatically deposited into your savings account. If it’s easier to track, you could even keep it in a separate account. Then it becomes a no-brainer, because that money isn’t there for you to spend. In a year, if you chose one of the above amounts, you could have $600 or $6,000 stashed away!

These tips will set you on the path of ensuring that if the unforeseen happens, you and your family will be OK financially. And what’s worth more than your peace of mind?

Filed Under: Disability Income Insurance, Life Insurance Tagged With: Disability Income Protection, Term Life Insurance

Consumers Are Not Prepared for a Critical Illness.

February 10, 2016 by Frank West

CRITICAL ILLNESS & DISABILITY.

Consumers Are Not Prepared for a Critical Illness

Ninety percent of middle-income Americans say they are not financially prepared for a critical illness diagnosis, according to a study by the Washington National Institute for Wellness Solutions. The study surveyed 1,001 Americans ages 30 to 66 with annual household incomes of $35,000 to $99,999. The following statistics reveal that many have little, if any, savings to fall back on in the event of a critical illness: • 75% have less than $20,000. • 50% have less than $2,000. • 25% have no savings.

To pay for out-of-pocket critical illness costs, middle-income Americans say they would need to use credit cards (28%) or loans from family/friends (23%) or financial institutions (19%). Another 23% don’t know what resources they could use to pay their expenses. Millennials and Gen Xers anticipate greater reliance on credit cards and loans to pay for critical illness expenses. Thirty-eight percent say they might never recover financially from a battle with cancer and 45% believe they would never recover financially from an Alzheimer’s/dementia diagnosis.

Eighty-eight percent of middle-income Americans have had no conversations with loved ones or advisers about potential care-giving options and 60% have not discussed financial planning for critical illness. Only 12% have explored care-giving options.

Filed Under: Critical Ilness, Disability Income Insurance Tagged With: Critical Illness Coverage.

Why Americans Lack Disability Coverage but Need It.

February 10, 2016 by Frank West

Why Americans Lack Disability Coverage but Need It.

Nearly 30 percent of working American adults believe they are more likely to be targeted by the IRS for an audit than they are to experience an injury or illness resulting in loss of work. In reality, they have about a one percent chance of being audited, but they face about a 25 percent chance of losing work because of an illness or injury. Although the majority of adults consider their income as one of the most important things in their lives, a recent report from the Council for Disability Awareness showed that there are several factors preventing working adults from obtaining insurance to protect it.

Regardless of a person’s age, his or her ability to draw an income is the most valuable resource possessed. However, the report showed that more than 55 percent of adults said they did not have disability insurance. This is an important insurance product for every working American to have, and it protects against the loss of income if the policyholder is unable to work for months or years following an injury or illness. When asked why they did not have this vital form of coverage, nearly 35 percent of adults said they could not afford it. Another 30 percent said they had never considered it, and nearly 25 percent said they did not know enough about it.

While people cited being unable to afford coverage as a reason not to have it, they should actually see it as something they cannot afford to go without. On average, a long-term disability lasts more than two years. This leaves helpless workers to try to find ways to compensate for lost income and pay living expenses. Government disability benefits alone will not even come close to replacing prior income. More than 40 percent of respondents said they would purchase disability coverage if it were cheaper, but about 60 percent said they had less than six months of income saved.

About 25 percent of today’s adults who are 20 years old will face a disability before they reach retirement age. Adults underestimate the risk they face of losing their ability to work. Although accidents are what most people think cause disabilities, the main causes are actually depression, back pain and absence requests for cancer treatment. About 50 percent of respondents said they would have to drain their savings if they faced a disability. Younger respondents said they would ask family or friends for loans, but older respondents said they would seek government programs. However, both solutions are only temporary and would not suffice for a long period of time.

It is important to consider how the bills would be paid in the event of a disability lasting more than three months, and people should consider how long they would be able to cover their expenses. Couples should also consider whether they could survive on one partner’s paycheck if the other became ill or was injured. Anyone who cannot answer these questions quickly with a viable solution should seek professional advice.

People who have disability insurance options offered by an employer may find more affordable solutions in their benefits package than they would by searching independently. There are more types of coverage than just disability alone in the marketplace, so all options are worth considering. Some companies may offer more than others, but employees who do not have access to this type of coverage at work should still seek it independently. To learn what options are available, discuss concerns with an agent.

Filed Under: Disability Income Insurance, insurance, Paycheck Protection Tagged With: Disability Income Protection

7 Reasons Why You Need Life Insurance

February 10, 2016 by Frank West

There are very few instances why someone could not benefit from a life insurance policy. We’ve put together seven reasons why almost anyone would need a life insurance policy for themselves or for the main wage earner in their home.

Instant Estate for your Family
It takes a lifetime to build up a large estate for your family. With life insurance you can instantly provide security for your family if you die unexpectedly.
Pay Off Debt
The mortgage is the first debt that likely comes to mind, but most Americans have many other forms of debt that can drain a family’s finances very quickly when the main income earner dies. Car payments, college loans, credit cards, and other smaller debts can put a lot of strain on the surviving family members.
College Funding
Your young daughter or son may only be learning their ABCs right now, but in the event of your untimely death or debilitating injury the funds for their college tuition could be lost in a matter of months. Life insurance can provide a blanket coverage for such an instance.
Lost Income
A common standard for many families considering life insurance is to estimate that a non-working spouse or homemaker should be insured to have an income of at least $35,000 replaced.
Final Expenses
Even if you have no dependents and no debt or outstanding bills someone will have to pay for your funeral costs. With a burial policy your loved ones will not be stretched to cover the final expense of your burial.
Long Term Investment
Cash value over time is a great way to make your life insurance policy go even further. This “nest egg” could be used for college tuition, starting a business, or a down payment on a house. Whole life policies do not always require a death to receive benefits.
Peace of Mind
When a time of grief overwhelms a household there is nothing that can make things any “better,” but having the peace of mind of a secure estate will certainly make the time of grieving much easier. Life insurance doesn’t take away the pain of losing a loved one, but it certainly helps deal with the reality of living security without your recently deceased

Filed Under: Life Insurance, Term Life Insurance Tagged With: Term Life Insurance

How to keep 2016 health insurance premiums in check.

October 17, 2015 by Frank West

http://www.cbsnews.com/news/how-to-keep-2016-health-insurance-premiums-in-check/

Filed Under: Health Insurance, Health Insurance Self Employed Tagged With: Health Insurance Self Employed

Consumers Are Not Prepared for a Critical Illness

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