It is a personal nightmare. You are sick, really sick and need time off to get well and whole again. You feel vulnerable, scared, ache and you are physically exhausted, unable to function. Your friends and family are really worried about you.
Money. You think about money. You need money for medical bills that keep mounting. You need living expenses and bills are getting past due. You wonder if you can afford to get well. Without looking tell me what is your maximum out of pocket limit on your health insurance for covered services including deductibles and co-pays in addition to your premiums? $2,000? $10,000? $20,000? Do you have it set aside or available somewhere for this medical need?
Where is your income coming from if you are not earning it to payinstallmentdebts and living expenses? Did you ever put that disabilitycoverage in place? Sadly, some of you will not have a job to go back to when you are well again. Nearly 48% of all personal mortgageforeclosures are income and health related.
You honestly do not want to think about this, because it only happens to "other" people, not you, right? Wrong! Did you know that in the last ten minutes 390 Americans became disabled? 30% of all employees in the US between the ages of 35-65 will suffer a disability and will be out of work at least 90 days. 1 in 7 of all employees in the US will be disabled for 5 years at some point. These statistics are not meant to use scare tactics to be the catalyst for action on your part, merely factual information you need to know according to the Health Association of America. But if scare tactics are necessary, read this paragraph again.
CQ Healthbeat recently reported a "typical" insured family of four in the US will spend about $13,382 this year on medical care. That figure represents only out of pocket costs and premiums. That was a 9.6% increase over last year. Overall, medical costs have increased an average of 10% annually the last five years, so it is this author's opinion this inflationary trend will not likely decrease and you should plan for these kinds of budget increases going forward.
The difference between you and one of these sobering statistics above is a five part solution designed to control your out of pocket costs, limit your overall financialexposure, reduce your income taxes, provide an income stream for illness or injury and secure peace of mind on the issue millions of American's are lacking, controlling catastrophic illness costs. Step one: Secure a Health Savings AccountQualified (HSA) medical plan that pays 100% of covered expenses after the deductible is met. For a singleperson this could limit your medical expense exposure to a maximum of only $2,650 annually, or an annual maximum for a family of only $5,250 regardless of the number of family members covered by the plan. The eligible deductible amounts are indexed annually for inflation.
Step two:Fund the tax deductible HSA to the maximum allowed by law to have taxfree monies ready to pay medical expense as needed, up to your maximum exposure. This will save you money by lowering your income tax bills.
Step three:Purchase a critical illness productthat is triggered to pay a $100,000 tax free cashlump sumbenefit upon any one of 15-20 occurrences such as heart attack, cancer, blindness, etc.
Step four: Purchase a Long Term Care (LTC) policy that pays benefits when you cannot perform two adultdaily living activities, or have a cognitive, or Alzheimer's loss. These differ from the older reimbursement plans in that receipts for every daily service, from every provider do not need to be submitted for reimbursement, a time consuming task for someone else if you cannot manage all this paperwork yourself. You either qualify or you don't for payment based on the inability to perform two adult daily living activities to trigger benefits, a much simpler and less costly insurance plan to administrate, which results in significant premiums savings to you, the insured.
Portions or all LTC premiums could be deductible to you if you meet tax guidelines. Most states give tax breaks to residents to who purchase LTC policies.
Individual Disability plans could provide the income stream, although depending on your age and occupation may be more expensive than a similar monthly benefit provided by a LTC policy as an alternative. Disability premiums are not tax deductible.
Step Five: Set aside an emergency cash cushion equal to your elimination period on your LTC plan. Some creative ways to help reach this goal while you build the actual cash reserveamount could be to earmark a portion of cash values in life insurance, ROTH IRAcontributions (not earnings), identify an asset that could be sold quickly, etc.
The next natural question: "Is this affordable?". Most likely the answer will be "Absolutely! Yes!" if you work with qualified agent who will search the market for the best fit for your needs, existing resources and preferences.
Here is a real life example. For a family with a Male age 48, female age 44 and four children, not the "typical" family of four, a family of six with $5,250 HSA plan in place:
What do I need to know about the cost of my insurance plan?
Insurance plans have lots of different tools they use to share costs with the consumer. When inquiring about costs of a plan, there are several areas you should be sure to investigate:
What is the premium? This is the monthly fee to maintain your insurance.
What is my copayment? This is a fee the plan could charge each time you visit the doctor or hospital, get a test or fill a prescription.
Does the plan have coinsurance? Many plans require you to pay a certain percentage of medical costs up to a capped level, for example, 20% of all costs up to $20,000.
What is the deductible? Most insurance require you to pay a set amount before coverage kicks in. This amount is your deductible.
Prescription issues copay? Also ask if the plan charges prescription copays, as many plans do. You should also see if mail-order prescriptions are available, as these are often less expensive. Finally, make sure the drugs you already take are covered on the plan's formulary, or list of approved drugs
What do I need to know about the benefits included in my insurance plan?
Rocco Solorzano Regional Manager of UsaBenefits Group, offers these tips on questions to ask about your benefits. Rocco's firm provides service and consulting on health care benefits. Responses on all of these questions can vary from plan to plan.
Do my doctors have contracts with my plan?
Are prescription drug costs covered?
What kinds of emergency services are included in my plan?
Which hospitals have contracts with my plan?
Does my policy cover preventive care benefits, such as mammograms, PAP tests, prostate Cancer screening, and colorectal examinations?
Does my policy cover lab and X-ray work that is outsourced from the doctor's office?
Does my policy cover rehabilitation and physical therapy?
Does my policy offer Smoking-cessation programs? Incentives to nonsmokers?
Does my policy offer gym memberships or discounts, work-site health fairs, or wellness programs?
What is my lifetime health care maximum?
Is dental care covered?
Is vision care covered?
Does my policy cover mental health programs?
When do I need to get preauthorization for a procedure?
As a new hire, when does my group insurance coverage begin?
Is there a limit on how much money I can contribute, tax-free, to a flexible spending account?
Yes. Federal law limits each family's contributions to $5,000 per year. That's for parents and their dependents. Your employer may contribute more.
If I don't spend all the funds in my flexible spending account each year, will I be reimbursed?
No. One drawback of flexible spending accounts is their "use-it-or-lose-it" rules. Any money you don't spend can be forfeited at the end of the benefit year. Fortunately, the law allows you to spend your money up to 2 months and 15 days after the end of the benefit year.
Why it is important to reconsider my health care benefits during my company's annual benefits enrollment season?
Your employer may have new plans to offer or could be switching plans. At the same time, plans themselves can alter their benefits or their prices. If you've had children, gotten married, or gotten sick in the past year, each of these things can affect which plan is right for you. Even if you've been promoted in the last year, you should take a look. Sometimes having more money available can affect your choices.
Married With Children
I am married. My spouse and I both have health insurance available through our employers. Should we take advantage of both policies?
Jason Brady, of Northwestern Benefit Corp. of Georgia, says it is usually cheaper to cover a spouse than to use two single policies. Still, workers should evaluate both options. Employers may contribute different amounts, or the properties of the plans could be very different.
If the spouse whose employer provides family coverage loses that coverage, can the other spouse seek "a special enrollment period" from his/her employer to get health care coverage?
Usually, yes. The federal Consolidated Omnibus Budget Reconciliation Act, also known as COBRA, offers workers and their dependents the chance to continue buying insurance coverage at group insurance rates in the event of job loss or a loss of benefits.
I am not employed and am covered under my spouse's insurance. If he/she loses insurance, what federal rules apply to keeping our health care insurance?
COBRA, discussed above, also covers unemployed spouses who lose coverage. If you get your coverage through your spouse and your spouse loses his/her health insurance, both of you are entitled to continued coverage under COBRA.
If I get a divorce or legal separation, how can I continue to be covered by health insurance through my former spouse's policy?
Again, you would want to investigate COBRA. It also covers most instances of coverage loss due to death or divorce. If you do get divorced or separated, the plan should notify you of your right to continue coverage under COBRA. After that, you usually have 60 days to elect to stay with the plan at the group rate, if you choose.
What questions should I ask about benefits available to my children?
Consider these questions when considering how to cover your children:
What wellness benefits, such as checkups and immunizations, are available?
Is my college-student child covered by the policy? Must he/she be a full-time student? What is the age limit?
If my college-student child attends school out of state, what kind of medical care is covered?
When is my child too old for coverage as a dependent?
If I lose insurance through an employer, how can my child be insured?
6. If my child's status changes (turning 19 or graduating from college), what options does she/he have?
Online Insurance Sales and Marketing: What's Happening and What's Next
Online insurance sales will double by 2011, and that the Web will play a major role in most personal insurance purchases across auto, life, and health.
Online Insurance Sales and Marketing: Practices and Profiles. Key findings include:
The web has become an increasingly important communication channel between sellers and buyers of personal insurance.
Most consumers' purchasing process is "Web Influenced"
Search engines like Google and Yahoo! are critical channels for insurers that cannot afford massive consumer marketing campaigns to drive shoppers directly to their sites, and more insurers are embracing search engine optimization to help capture these shoppers
Pure online sales are growing, but will still account for less than 15% of sales, even in personal auto.
The report estimates the current breakdown of "Web Influenced," "Web Initiated," and "100% online" sales across personal auto, individual life, and individual health sales. "While 100% online sales are unlikely to exceed 30% in any area, the Web will be a major influencer for nearly all sales within five years," says Rocco Solorzano, Regional Manager USA Benefits Group.
The report describes the online ecosystem within which buyers and sellers have a number of ways to reach one another: the interactions can be direct between the consumer and the carrier; through online marketing driven by search engines; and through online agencies or agents' websites. Insurers need to manage and direct those interactions or risk losing shoppers' attention to intermediaries that may direct prospects elsewhere.
To demonstrate the varied landscape of online marketing and sales, this report provides snapshots of web activities for top carriers, aggregators, and online agencies in three areas: personal automobile, life, and individual health.
Personal automobile includes: State Farm, Allstate, Progressive, Geico, Nationwide. Life includes: AIG, MetLife, Northwestern Mutual, Prudential, and New York Life.
Individual health includes: UnitedHealth, Assurant, Aetna, and Imerica.
Every succesful home has a library. Why? Knowledge is power. I recently have been caught up in the hype of radio and television. I have put the brakes on that and explored the library theory. I have changed my thinking daily and now incoprated some motivating cd books in my drive into work and read before I go to bed. I have seen a HUGE change in my lifestyle for the better. Cut out 1 thing in your day and replace it with something motivating. You will see a change and your dirty windshiled you are looking out becomes clear. They say we use about 70% of our brain power. Life is a puzzle some pieces will fit and some will not but you can't stop until you achieve your big picture of whatever you are trying to accomplish.
I asked this question to a group of insurance agents recently and they were kind enough to answer without taking offense. I heard several different responses, but most described it as the pooling of assets by many to protect against a potential catastrophic risk that might be experienced by a few. The risk may be from a car accident, a storm, a flood, a catastrophic illness or injury, death or disability, or just about any risk one could come up with.
However you view it, insurance is a financing tool used to protect against a potential, but not yet realized, risk. I asked this question to begin a conversation about Health Savings Accounts because I wanted to make sure that everyone was on the same page about the purpose of insurance: insurance is protection against a possible catastrophic loss.
Yet it seems that many people expect health insurance to pay for all of their routine health care expenses, no matter how small or trivial. "How much is my co-pay?" is a common question when it comes to health insurance. It seems that the public no longer thinks of health insurance as protection against catastrophic risk, but against everyday risks.
I am amazed that someone would want to spend $100 per month more to get a co-pay plan to cover the two to three office visits they might have each year, whereas those office visits would typically cost less than $150 when an in-network doctor is used. Let's do the math again: that's $1,200 per year for the convenience of having a co-pay when you go to the doctor. Still, when I look at what is sold, that seems to be what people prefer.
Health Savings Accounts take the concept of what insurance is -- protection against catastrophic risk -- and make it work for individuals. The accounts provide tax advantages and savings so individuals can create personal security against minor health care expenses. At the same time, the required high deductible health insurance plan protects against catastrophic risk. It is a powerful combination.
Health Savings Accounts put the power of choice and control in the hands of the individual consumer when it comes to their health care money. The tax advantages are tremendous and the fact that you can use the money to purchase anything from aspirin to an expensive experimental procedure, speaks volumes to the flexibility and choice that the account gives to consumers.
Health Savings Accounts represent a different approach to health insurance that involves the understanding of two things: the tax advantages of the account and the cost benefits of buying a high deductible health insurance product. Of course, you also have to convince an individual to give up the convenience of their co-pay.
Health Savings Accounts are simple and easy to understand
Health Savings Account is a tax-favored savings account combined with a qualifying high-deductible health insurance plan. By allowing you to deposit tax-deductible funds into a health savings account that you can use to cover medical costs, Health Savings Accounts enable you to take control of your own health care decisions. One of the key aspects to health savings accounts is a system that is responsive primarily to individual consumers, rather than to third-party payers. This concept is known as consumer driven health care.
First, you must have a high-deductible health insurance plan that qualifies to be partnered with a Health Savings Account. These plans are available through various insurance companies, depending upon what part of the country you live. The plans are all similar in the fact that they have deductibles between $1,100 and $5,600 for singles, and between $2,200 and $11,200 for families.
Once your insurance policy has become effective, you may begin to fund your Health Savings Account.
Health Savings Accounts allow you to legally avoid federal income tax by depositing up to $2,900 for singles or $5,800 for families, into your Health Savings Account. Whatever you deposit into your account up to April 15, 2009 is an "above the line" tax deduction for your 2008 taxes, meaning you get a federal income tax deduction for money you put in even if you take the standard deduction and don't itemize deductions. If your employer makes a Health Savings Account contribution for you, it is "excluded" from income, and not subject to any income tax or FICA. Either way, this will immediately reduce your federal income tax due for the year. Most states also allow you to take a state income tax deduction for HSA contributions. To see options on Health Savings Accounts please visit http://www.123MedicalQuotes.org
How does health insurance work? Imagine you have a $100,000 heart surgery, which is a covered medical expense under your health insurance plan, and let's say this health insurance plan has a $1,000 annual deductible, 20% coinsurance after deductible, $2,000 out-of-pocket limit per year and $5 Million lifetime maximum.
What is a Deductible? Typically, a deductible is the amount of money you must pay each year before your health insurance plan starts to pay for covered medical expenses. So with a $100,000 heart surgery bill, you are responsible for paying the first $1,000. After this $1,000 deductible is met, the insurance company will pay a percentage of the bill in what is called the coinsurance.
What is Coinsurance? Typically, coinsurance is a cost-sharing requirement where you are responsible for paying a certain percentage and the insurance company will pay the remaining percentage of the covered medical expenses after your deductible is met. For a health insurance plan with 20% coinsurance, once the deductible is met, the insurance company will pay 80% of the covered expenses while you pay the remaining 20% until your out-of-pocket limit is reached for the year.
What is Out-of-Pocket Limit? Typically, the out-of-pocket limit is the maximum amount you will pay out of your own pocket for covered medical expenses in a given year. For a plan with a $2,000 out-of-pocket limit, you will pay a $1,000 deductible and $1,000 coinsurance while the insurance company covers the remaining $98,000 of the heart surgery bill. Even if you are hospitalized again in the same year, the insurance company will pay 100% of your covered expenses within the limit of the lifetime maximum.
What is a Lifetime Maximum? Typically, a lifetime maximum is the amount your insurance plan will pay for covered medical expenses in the course of your lifetime. Since the health insurance plan has a lifetime maximum of $5 million, and as you pay your deductible, coinsurance and out-of-pocket limit each year, the insurance company will pay for all remaining covered medical bills up to a maximum of $5,000,000 in your lifetime.
Here's one more concept... Some health insurance plans offer co-payment. What is Co-payment? Typically, a co-payment or co-pay is a specific flat fee you pay for each medical service, such as $30 for an office visit, after which the insurance company often pays the remainder of the covered medical charges. Let's say you are not feeling well and went to see your doctor who charges $200 for the office visit. If your insurance plan has an office visit co-payment of $30, then you will only be responsible for the $30 and the insurance company will cover the remaining $170.
Just because you're healthy doesn't mean you don't need health insurance. In fact, health insurance is meant to help you stay healthy!
But many people mistakenly think they can't afford to pay for Health Insurance to maintain their health. In many cases, that's simply not true. And health insurance doesn't just help in maintaining your physical health, it can protect your financial health as well. A 2005 Harvard University study of nearly 2,000 Americans in bankruptcy courts revealed that half were there because of illness or medical bills.
Making Lifestyle Changes
If you're uninsured, don't despair; Insuranti is here to help you find inexpensive health insurance. We help by matching you with agent and insurers and health discount plan providers. They, in turn, provide you with free quotes, allowing you to compare policies and pick the one that meets your needs.
We understand how tight household budgets are these days and, at the same time, we want to help you get-and stay-healthy. But first you must help yourself.
How? Start by doing everything possible to lead a healthy lifestyle:
If you currently smoke or use tobacco, stop.
If you don't exercise or eat a well-balanced diet, start.
See your doctor for annual physicals so problems can be detected right away, before they get out of hand.
Limit your alcohol consumption.
No one can make these lifestyle changes for you; you'll have to make them yourself. But staying healthy is the best way to get inexpensive health insurance.
Locating Inexpensive Health Care
Beyond making lifestyle changes, there are several other ways to find inexpensive health insurance, while still maximizing coverage. We suggest these tips for best results:
See if you qualify for group health insurance. Check with your employer, an alumni association or professional group you belong to. Many organizations offer group plans at discounted rates-a big money-saver when it comes to your premiums.
Examine individual health plans. They're less expensive than you might think!
Consider pairing a Health Savings Account (HSA) with a health insurance plan. An HSA allows you to use pre-tax dollars to cover routine health expenses, lowering the cost of your major medical insurance.
Increase your deductibles. The more you're willing to pay before your insurance kicks in, the less you'll pay in insurance premiums.
If you have a small income, check on state-sponsored programs through your state's division of insurance, or contact your local division of family services to see if you qualify for Medicaid. Many states have help available; you just have to ask.
Finally, make use of resources like the internet and friends and family. Spend some time researching, reading and getting recommendations. Since health insurance quotes can vary widely from one insurer to another, these might be the shortest routes to the savings you need.
Taking Care of Business
When it comes to inexpensive health insurance, the choice really is yours. So don't risk your well being, life and finances by going without insurance.
If you are self-employed, or otherwise in need of individual health insurance coverage, how do you go about finding the best plan?
1. Learn the language:
HMO - Health Maintenance Organization. This is a very structured plan where you pick a PCP (Primary Care Physician), the doctor you see first for everything. The PCP refers you to a specialist.
PPO - Preferred Provider Organization. This is less restrictive than an HMO. You self-refer to any physician in the network for care.
Indemnity Plan - The old traditional plan before managed care. You go to any doctor or hospital. There are not many of these left, and they cost the most.
Hospital/Surgical Plan - These plans cover the basics with few bells and whistles. Some provide riders to make them look like major medical plans.
HSA - Health Savings Plan - These plans were designed by Congress. You have a high deductible health plan coupled with a tax-deductible savings plan.
Temporary Health Insurance - A great low cost alternative for those needing coverage for one to twelve months or who cannot qualify for long term coverage.
The above ary very general descriptions to help explain the different options. Not all plans are available in all states.
This will depend on the length of time you need the coverage; how much money you have in savings or are willing to risk; your plans for having children; the doctors your prefer; cost; and most importantly your health.
If you are planning a family - Having maternity coverage is a must. An HMO will almost always provide the lowest cost, as maternity is built into the cost.
If you are between jobs - A temporary plan is the best way to go.
If you prefer a particular doctor or hospital - A PPO may be the best way to go.
If money is tight - A Hospital/Surgical Plan, HMO, Temporary Plan, or high deductible PPO may be options for you.
If you want complete freedom - and money is no factor, then an Indemnity Plan is best.
If you hardly ever use your plan - and you wish you had all the money back, then an HSA may be best for you. HSA Quotes
If you have minor problems - that would be pre-existing conditions with most plans, an HMO might not consider these as problems.
If an HMO will not take you - a PPO, Indemnity, Hospital/Surgical or HSA may take you, but rider the condition. PPO Quotes
3. Find out what it will cost:
To find out what it will cost, contact an agent in your state.
To avoid any surprises at claim time, it is important to provide accurate information. Do not give an insurance company an excuse not to pay!
Facts You Should Know Before Buying Any Health Insurance Plan! Health care is a hot topic in America. When you buy a health insurance policy, never make your decision based on price alone. This report will reveal to you some critical facts about health insurance that should be considered before making your buying decision.
Fact #1
All Health Insurance Companies Are Not The Same
Before you run out and purchase your next health insurance policy, you should know something about how insurance companies are rated. The company that is best known for rating insurance companies is called the A.M. Best Company. A.M. Best is the oldest, most experienced rating agency in the world and has been reporting on the financial condition of insurance companies since 1899.
Here Are The Ratings The A.M. Best Company Assigns:
A++ and A+ (Superior)
A and A- (Excellent)
B++ and B+ (Very Good)
B and B- (Adequate)
C++ and C+ (Fair)
C and C- (Marginal)
D (Very Vulnerable)
E (Under State Supervision)
F (In Liquidation)
For additional information, call A.M. Best at 908-439-2200.
Solution To The Problem
You can ask your agent to show you a current copy of their company's A.M. Best Report. Get on the phone and call A.M. Best to find out the real story on any company before buying a health insurance policy.
Fact #2
All Health Insurance Companies Do Not Pay Claims According To The Same Standard
There are only three main categories in which claims may be considered for payment:
1. Let the hospital or doctor decide what the insurance company should pay.
2. Let the insurance company decide how much they should pay.
3. Let data from an independent third-party determine the amount paid.
If a hospital or doctor decides, it's the equivalent of giving them a blank check and saying, "fill in the blank $________ for how much you want and we'll pay it." This is called Actual Charges. This is not a common practice with insurance companies, because they can go broke if they don't place some restrictions on how much money is coming out of the insurance pool. If claims payments are not restricted in some way, there would not be enough money in the insurance pool to help cover the risks of other policyholders. Proceed with caution when an insurance company claims they pay actual charges. What is more common is that the majority of insurance companies decide what they want to pay. When an insurance company decides how much they choose to pay for a claim, they use wording like this:
We pay reasonable charges
We pay prevailing charges
We pay average charges
We pay permissible charges
We pay regular charges
The above terms mean whatever the insurance company says they mean. The company is in control of determining what the meaning is. This is usually not what the hospital, doctor or policyholder feels it should be and therefore much confusion and misunderstandings occur as a result. As long as the insurance company is in the deciding seat, their standards can change at any time.
Solution To The Problem
The insurance company should use data from an independent third party to make the determination about how much to pay. There are companies that specialize in conducting nationwide studies of Usual and Customary Charges by health care providers in geographic areas throughout the United States. They publish these findings for insurance company use. Some companies pay based on these Usual and Customary Charges, but some companies pay something less, whatever they feel is reasonable, etc. Choose an insurance plan from a company that pays Usual and Customary Charges based on data from an independent third party after any deductibles or co-payments have been met. Ask your insurance agent before buying.
Warning! Beware of companies who attempt to fool you by adding extra wording like usual, customary and reasonable charges. (U,C,R) Adding another word to the term changes the true meaning and is a loophole for the company to still decide how much they want to pay for any claim.
Fact #3
All Health Insurance Plans Do Not Cover Doctors The Same Way
A policyholder may be shocked to find that when they need two or more doctors for a medical procedure, that only one is covered and additional doctors are not. This goes back to an old English lesson we learned in grade school. For example, let's take the word surgeon. There is a difference between surgeon 's fees and surgeons' fees. Still confused? Take a closer look. Notice where the little apostrophes are placed? N's means one surgeon. Ns' means two or more. Most people don't pay attention to this when an insurance agent "says" our plan covers surgeon 's or surgeons' fees, because both sound the same. An agent may not tell you this means only "one" is covered and you will be responsible for the charges for any additional surgeons. You can lose thousands of dollars of your hard-earned money by overlooking where the little apostrophe is placed.
Solution To The Problem
Make sure your health insurance plan covers multiple doctors and does not limit who can treat you. Make sure your agent explains to you in simple terms how many are covered. Ask your insurance agent before buying.
Fact #4
All Health Insurance Plans Do Not Cover All Medically Necessary Hospital Care
Some plans will only cover certain hospital procedures as outlined in the policy. If it 's not listed, it 's not covered unless you see the phrase "and all other medically necessary hospital expenses". This phrase is important. Because if a doctor performs a medically necessary procedure that 's not on the list, it 's not covered, leaving you responsible for the charges.
Solution To The Problem
Make sure your health insurance plan covers all other medically necessary hospital expenses. Ask your agent before buying.
Fact #5
All Health Insurance Companies Do Not Treat Pre-Existing Conditions The Same
If you have been accepted by a health insurance company, you will normally have a waiting period before your pre-existing condition is covered. A waiting period of 24 months is typical for most plans in the industry. Some companies will give you credit for waiting periods satisfied on your previous policy and some states even require this benefit. If you have a serious health condition that is unacceptable, a company may offer you a Rate-up or an Exclusionary Rider in order to issue your policy. A rate-up means you 'll be charged more to cover your serious condition. An exclusionary rider means a specific condition will not be covered. A company should be upfront with you about any exclusions. If you accept an exclusionary rider, make sure any major system of your body is not excluded.
Solution To The Problem
Make sure you know exactly how your pre-existing conditions are covered and about any waiting periods. Ask your insurance agent before buying.
Fact #6
All Health Insurance Companies Do Not Perform Rate Increases The Same Way
Some companies implement rate increases in a way that can single you out for an increase independently of most other policyholders. They may raise your rates each year you have a birthday or because you have collected too much money from the plan. The purpose of a rate increase is to offset claims loss and inflationary increases. Since all insurance companies are subject to paying claims and the economy, there will always be a need for periodic rate increases. However, when this need arises, you don 't want to be "singled out" due to your age or health status.
Solution To The Problem
Make sure you can NOT be singled out for rate increases on an individual basis. Buy a plan that performs any necessary rate increases on all the policyholders of the same type in your particular state. Ask your insurance agent before buying.
Fact #7
All Health Insurance Plans Do Not Provide The Same Dollar Limits
Many health insurance companies only provide up to $500,000 for each injury or illness and a $1 million to $2 million lifetime maximum for all insured applicants combined. Medical costs are not what they used to be. Don 't get stuck with an outdated policy. For example, premature childbirth may have expenses of $200,000 or more in the first six months alone. If you encounter a major catastrophic injury or illness, you want to be sure you 've got a plan with sufficient dollar limits to cover today 's rising medical costs.
Solution To The Problem
Consumer-oriented health insurance companies now provide $1,000,000 to $2,000,000 for each injury or sickness and a $3 million to $5 million lifetime maximum for the entire family. Choose a plan that is keeping up with the rising costs of medical care. Ask your agent what the limits are before buying.
Summary of Report
Hopefully this report has helped you become a better educated consumer about health insurance plans. Choose a health insurance plan based on the quality of the Company and the Plan first. Then adjust the rates by increasing your deductible or co-payment amount to make it affordable. If you buy a cheap plan, you 'll get what you pay for. Don 't make your buying decision based on low- cost prescriptions, doctor visits and the monthly premium payment alone. Find out if you 'll be covered 24 hours a day, on or off the job, and if the plan is good in any recognized hospital in the world. Buy from a professional, licensed Agent in whom you can have complete trust and confidence. Find out how long it takes the company to pay its claims. Have your Agent explain the general list of exclusions and limitations on the plan. Get the phone number of your Agent and your insurance company 's customer service division for help and assistance. Finally, stay informed and remember to vote on issues to improve the health insurance industry
Rocco Solorzano
Health Savings Account is a tax-favored savings account combined with a qualifying high-deductible health insurance plan. By allowing you to deposit tax-deductible funds into a health savings account that you can use to cover medical costs, Health Savings Accounts enable you to take control of your own health care decisions. One of the key aspects to health savings accounts is a system that is responsive primarily to individual consumers, rather than to third-party payers. This concept is known as consumer driven health care.
3. Let data from an independent third-party determine the amount paid. 
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