Health Insurance Solutions Part II

Time and time again there is a solution to every problem, challenge, obstacle or anything else that may cause us to fret. Ecclesiastes 3: 1-8. The Affordable Care Act never stated insurer had to do away with the underwriting process. Several elements to sell plans were implemented to conform and to be compliant with the law which included: essential health benefits which are all necessary; with the exception of pediatric dental and vision coverage, especially for someone who does not have minor children in their custody.

The other element is the fact that carriers could no longer deny coverage to consumers who has more than enough health related conditions with exorbitant premiums, terms in the insurance world “rated” because of preexisting conditions.

This is the major problem facing the health sector and why insurers are unable to measure their risk with finding reasonable rates for the American people. This is a shot in the dark for insurance companies to play a guessing game of not knowing who has chronic health problems on a regular basis and what the cost would be to accurately provide care at reasonable prices. Actuaries’ calculate insurance with a purpose; to estimate risk. No measuring stick, no wonder why carriers have lost money over the last several years and are ready to bail out.

The government involvement in the insurance industry is to govern, not necessarily to run the insurance business. It is sad that large carriers are allowing the government to dictate and rule out the main premise of insurance. This business is built on risk factors. There is no difference if you wanted to purchase homeowners, auto; or any other type of insurance, there are risks with insuring property. Our physical bodies are a higher risk since we are moving objects on the go all the time, we wear out and break down time to time and have to be repaired and healed.

Why aren’t insurers addressing this fact with lawmakers? What are the chances of a mechanical breakdown with stationary buildings? Physical buildings breakdown due to neglect and lack of maintenance, or if someone physically damaged the property for whatever reason. When was the last time you purchased property and casualty insurance and your risk wasn’t taken into consideration for how much you will be charged in premium dollars? Well, it is no different with health insurance.

There is a solution and a plan that will work. It is not about taxes, neither is it about how many people will lose coverage, cutting back on Medicaid, squeezing the poor, the rich getting richer or the other non sense we hear from politicians. Insurers need to be bold and follow the guidelines of the current law, go back to the underwriting process, deny no one coverage and have affordable premiums based on risk the way it was in time past; prior-Affordable Care Act.

As consumers, it is our responsibility to take care of these earthly bodies and to protect our finances while we are physically and financially able to do so. Are you going to wait after a chronic health condition comes over you and then attempt to get coverage? That’s like having a building already on fire, and then calling an insurer to get covered. Be wise, get yourself the protection you need while you are still insurable before your temple begins to deteriorates.

Grasp How Health Plans Work – Part II

Some insurers have figured out this new model and are masterminding new designed plans that include high deductibles and also higher co-insurances to the degree many carriers are profiting. There are some carriers who have not profited so well with entering this new territory; due to the fact of miscalculating the risk involved with insuring people with chronic health conditions. For carriers who analyzed and targeted their profit margins accurately they are faring well in this market.

In the beginning when the government first chose to have this mandate of insuring all people, their idea with the Bronze level plans would payout at a 60% co-insurance level. However, as time has progressed; carriers are designing plans to meet individuals budgets and to fit consumers lifestyle by having high deductible plans that appeals to those with higher incomes.

Ask yourself this question; why should I have such a high deductible and pay high premiums at the same time, in order to receive a co-insurance of 80% after spending anywhere between five to six thousand dollars on a Bronze level plan? This does not make economical sense, but this is what is happening in the health insurance business. As long as you are healthy and have the finances to the degree where money is no object, then by all means, continue on with your Bronze level high deductible plan.

As a consumer, it is important for you to do your homework and make sure the health plans you are considering purchasing are truly major medical coverage in the event you experience a devastating illness that could wreck your financial portfolio. A number of carriers are also creating indemnity type coverage’s; giving the American people a false sense notion of nothing is going to happen to me in their sales pitch, luring and offering lower premium dollars which are attractive, and though these types of plans will cover minimum medical expenses; however, they are not major medical insurance if a catastrophic event were to occur in your life and you found yourself hospitalized over a certain time period. Don’t be fooled, know the difference between the different type of plans in this health market. “Wisdom is the principal thing; Therefore get wisdom. And in all your getting, get understanding.” Proverbs 4:7.

As an insurance professional in the health and life sector, I would recommend people take into consideration their household income to protect their income and assets when purchasing insurance products. None of us would want to suffer financially and on top of that, become physically unable to earn a paycheck for any given time period. As consumers, we are to be wise with how we purchase insurance; which is just as important if not more important as to the type of coverage we choose to have with our financial planning. When wisdom is applied to our daily walk then discretion should follow with every decision that we make. “When wisdom enters your heart, And knowledge is pleasant to your soul, Discretion will preserve you; Understanding will keep you.” Proverbs 2:10-11.

Be encouraged and educate yourself on the topics of; different types of life and health insurance products, personal finance, and other information related to business that has to do with money and how money works.

What Is Health Insurance?

What is health insurance and why do I need it? Health insurance protects you and your family from a financial hardship due to medical expenses in the untimely event that you are injured or become ill. There are four types of health insurance, you may need just one or you may need a combination to ensure you have the most insurance coverage possible. It is best to evaluate each type of insurance to obtain an accurate account of which type will best suit your needs.

Individual medical coverage is designed for people who do not receive this type of coverage through their employer or family. Medical supplement insurance is designed for the elderly who contribute to Medicare however, desire additional coverage to supplement expenses that Medicare won’t cover. Hospital income insurance is intended to compliment your main health insurance program. This coverage provides a prearranged daily benefit amount for unforeseen expenditures that accompany extended hospital stays for a covered sickness or injury.

The fourth type of health insurance coverage is disability insurance, which comes in three different forms. Disability insurance protects you in the event you become physically or mentally disabled due to an accident or illness. This type of insurance is designed to provide you with your living expenses if a disability prevents you from working or earning a living.

Disability income insurance is used as a principal income substitution plan or as an enhancement to your income continuance or group disability plan. This plan is devised to keep you economically secure during hard times by paying monthly wages directly to you when you are unable to work. Mortgage disability income insurance is designed to protect your most precious possession, your home. This policy specifically provides you with money meet your mortgage obligation if you become totally disabled. Individual credit disability insurance will help you pay off loan payments in equal monthly installments. In the event that you become totally disabled this plan will make payments on your behalf directly to the financial institution.

There are many things to consider when contemplating which type of insurance is most beneficial to you and how much coverage you really need. If you are working and receive insurance through your employer investigate how much coverage you are really provided in terms of health care. Then ask yourself the following series of questions:

Does it cover pre-existing conditions, genetic conditions, chronic or life threatening conditions? Does it just cover accidents that occur in the workplace? How much money will it shell out before it is considered at its limit? Will it cover the cost of transplants or long-term care? What about family members, how much coverage will your insurance plan provide them? Then think about your lifestyle. Do you drink or smoke? Is hypertension a family heirloom? Are you at high-risk for diabetes, a heart attack or stroke? Are you accident-prone or do you often take unnecessary risks? Do you work late hours and drive a considerable distance to and from work? Are you the primary breadwinner and if so how will the bills be paid if you are out of work due to an unforeseen disability caused by an accident? Consider all of these things then ask yourself if you and your family are adequately insured.