News & Events
Every year Hoosiers experience increasing Health Insurance Premiums. As Insurance Providers absorb the cost of claims premiums tend to go up. Insurers increase premiums among the healthy to offset the cost of claims from the unhealthy. As healthy people change jobs or switch insurance carriers the remaining people in the group are left to pick up the tab. This is called the Death Spiral. How can an individual or a group stay away from this? The answer is simple…Control. Taking control of your health care is the key. Using a broker to find the health care plan that is the most economical while maintaining a necessary level of coverage is essential. Weather you are Self Employed or part of a large group there is relief. Take control of your Health Care and get on track to lower your premiums.
As the explosion of health insurance sales online continues buyers need to be aware. Almost everyday I speak with a potential client that has received quotes online and thinks they are buying a certain type of plan. What they are actually buying is a plan that has limited benefits. This could be an honest mistake from the agent or it could be something far more serious.
There has been a flood of new insurance agents to the industry that specializes in online sales. These agents do not or will not meet face to face with their clients. They just “churn and burn” personal policies. These types of outfits offer no customer service and have a lack of knowledge in product.
They might quote you plan for $140 a month and you think you are buying a plan that is valued at $300 a month. With online application many people are not looking at the plan they are applying for and over the phone they are being told they are buying another plan. So the plan that you think is such a great deal turns out to be a nightmare. Plans that have $3,000 max prescription drug benefit per year or only pays $25,000 a year on inpatient services.
These types of plans can be devastating should you end up need more than the benefit pays.
Its very important to choose an agent that has knowledge in the industry and is willing to meet with you. You want to buy a policy from an agent that is successful because they value what they sell and they value their reputation.
As the explosion of health insurance sales online continues buyers need to be aware. Almost everyday I speak with a potential client that has received quotes online and thinks they are buying a certain type of plan. What they are actually buying is a plan that has limited benefits. This could be an honest mistake from the agent or it could be something far more serious.
There has been a flood of new insurance agents to the industry that specializes in online sales. These agents do not or will not meet face to face with their clients. They just “churn and burn” personal policies. These types of outfits offer no customer service and have a lack of knowledge in product.
They might quote you plan for $140 a month and you think you are buying a plan that is valued at $300 a month. With online application many people are not looking at the plan they are applying for and over the phone they are being told they are buying another plan. So the plan that you think is such a great deal turns out to be a nightmare. Plans that have $3,000 max prescription drug benefit per year or only pays $25,000 a year on inpatient services.
These types of plans can be devastating should you end up need more than the benefit pays.
Its very important to choose an agent that has knowledge in the industry and is willing to meet with you. You want to buy a policy from an agent that is successful because they value what they sell and they value their reputation.
The ever rising costs of employer sponsored group health insurance have driven more companies to elect high deductible health plans along with goal driven wellness programs. Under these types of wellness programs employee’s can reduce their out of pocket costs by meeting reasonable health goals.
Goal driven wellness programs work best when the program is to alter employee’s unhealthy lifestyle. An example of this would be to help employee’s quit smoking. Where they can have great results is if an employee is suffering from multiple conditions. High Cholesterol, High blood pressure, and Obesity could be a direct result of a un healthy lifestyle depending on the individual. So to educate an employee how they can change their life style to help treat these conditions can have a huge impact on cost to the employee in the form of claims. The wellness programs can even address issues like stress management or how to buy and prepare health foods at a reasonable cost.
The first step is an employee/insured should complete a Health Assessment form. We are seeing these more and more in an online format. After completing the assessment form you will be given information on what you might be high risk for. Some of these programs even address the issue if you drive too fast as it may be linked to stress. With that high risk information you could have access to a disease management program or health coach. In some programs the health coach will help you establish and work towards your health goals.
Once you have entered the disease management side of the program you will be educated on what conditions you are high risk for. The education can include treatments and prevention. There might be 10 drugs out in the market place that can treat that condition and it’s important that you know about the different options. One of those options might cost you a lot less and treat the condition.
The best way to reduce your out of pocket expenses is to actively live a healthy life style and the wellness programs that are being developed today can help you meet those goals.
This is an interesting program that very few people are aware of. If your house hold income is below 250% of the federal poverty level then you may be eligible to put your children on this health plan.
Currently in Indiana the SCHIP program is being admin through Hoosier Health wise. So for a family of 4 to be eligible the house hold income cannot exceed the 250% of the federal poverty level ($53,000).
So if you are a business owner, controller, or a citizen of Indiana you should know about this program.
Being a business owner or controller it’s important to be able to advise newly hired employees and existing employee that they might be eligible to put their kids on this program. Currently most group health plans could cost an employee or company much more than what it would cost on SCHIP. On SCHIP two children could cost up to $70 a month in premium. In the private sector those same kids could cost anywhere from $120 and up depending on the group and plan design.
This program could help out a lot of Hoosier families.
Now here are is one of the big obstacles of the plan. The child must be uninsured for 3 months before they are eligible. This is a huge obstacle.
From an employer standpoint they should inform any new hires with children about this option. With the current economic conditions we are seeing a lot of families that are going uninsured do to cost. So they might qualify for SCHIP which will reduce what they are spending on premiums.
This October 2009 we might see an increase from 250% to 300% of the federal poverty level to qualify.
This program has very little advertising to it.
Eligible individuals with self-only coverage under a high-deductible health plan (HDHP) may contribute an annual maximum of $3,050 to their Health Savings Account (HSA) for 2010. Eligible individuals with family coverage (coverage for two or more individuals) under an HDHP may contribute up to $6,150 to their HSA. Individuals age 55 or older who are not enrolled in Medicare may contribute more to the account per year.
To be considered qualified for an HSA, the HDHP must meet certain IRS regulations.
For 2010, to qualify as an HDHP:
- The minimum deductible amount must be $1,200 for self-only coverage and $2,400 for family coverage; increased from 2009 requirements.
- The out-of-pocket maximum must be no higher than $5,950 for individual or $11,900 for family coverage; increased from 2009 requirements.
- The HDHP must be set up with a combined medical/pharmacy deductible. This deductible must apply to the out-of-pocket maximum; no change from 2009 requirements.
- All medical and pharmacy services must be subject to deductible and out-of-pocket maximum except for preventive services.
To view the 2010 HSA reference guidelines, click here.
General Findings:
- More than 80 percent of respondents cite their ability to save for future health care expenses as the primary reason for opening and depositing money into their HSAs.
- 70 percent of HSA participants make $75,000 a year or less in income.
- 82 percent of HSA owners are satisfied with their accounts.
- 78 percent believe the continued availability of HSAs should be part of any health care reform that may occur.
- 74 percent agreed they would recommend an HSA to a friend or family member.
- Three out of 10 respondents said that they wouldn’t have health insurance if it were not for their HSAs.
Finance, physical well-being, health care engagement inquiries produced the following:
- 64 percent of the respondents said they inquired about generic options for medication.
- 47 percent indicated they asked their care providers about charges.
- 83 percent of respondents agreed people should research health care options and try to get the best price – just like they do for other major consumer purchases.
- 72 percent of respondents said that individuals should be responsible for helping to manage their own health care costs.
More Employers Are Moving Toward CDHPs, HSAs
According to a Watson Wyatt Worldwide and National Business Group on Health survey, 51 percent of companies now have a CDHP in place, a 9 percent increase from last year. Inside Consumer-Directed Healthcare reported that the number of HSAs grew about 40 percent year-over-year as of January 2009 and average savings balances grew 45 percent.
The survey was conducted online by an independent research firm between Feb. 27, 2009, and March 20, 2009, with a random national sample of 500 HSA owners. The survey measured satisfaction level, motivations for having an HSA and effects the accounts had on engaging people in managing a portion of their health care savings and spending. Participants had an HSA for at least one year, were covered by a high-deductible health plan and had an active HSA at the time of the survey. Margin of error for the survey was 4 percentage points or better with 95 percent confidence. HSAs are tax-free health spending and savings accounts available to individuals and families who have qualified high-deductible health insurance policies as determined by IRS regulation.
Anthem plans across the country are working to develop innovative products and programs that help address rising health care costs. Through pay for performance initiatives, consumer directed health plans and transparency initiatives; Anthem is providing access to the information needed to drive down health care costs.
While many people may believe that insurer profits are the driving force behind increasing health insurance premiums, research reveals very different reasons for the high cost of health insurance.
A May 2009 report titled “What’s Really Driving the Increase in Health Care Premiums?” addresses the issue. The report, issued by the WellPoint Institute of Health Care Knowledge, compiles research from sources such as PricewaterhouseCoopers, the Robert Wood Johnson Foundation, the Kaiser Family Foundation, the Bureau of Labor Statistics and the Congressional Budget Office.
According to the report, the “key drivers” of spiraling U.S. health care costs are:
- Advances in medical technology and subsequent increases in utilization;
- Price inflation for medical services that exceeds inflation in other sectors of the economy;
- Cost-shifting from people who are uninsured and those receiving Medicare and Medicaid to the private sector;
- High cost of regulatory compliance; and
- Patient lifestyles, such as smoking, physical inactivity and obesity.
Citing PricewaterhouseCoopers research from 2008, the report found that only three cents of every health care premium dollar is spent on health insurer profit.
According to the Institute’s report, newer medical technologies tend to increase costs because they are generally more expensive than the older technologies they replace. While the availability of more advanced, superior technologies can yield better results for some patients, these technologies and diagnostic tests may be used inappropriately in some situations where existing, older technologies are more effective and accurate.
To view a copy of the full report, click here.
We would like to post the new American Recovery and Reinvestment Act (COBRA Information and Questions and Answers) for all clients and info seeking people out there.
The document is in PDF format, so you will need Adobe Acrobat Reader to view the document.
As many of you may already have noticed, we launched a new website today with the goal of easily providing quotes to both individual and business customers. The website, designed by Dan Root, is built strictly in cascading style sheets (CSS) and has many search engine friendly features that are designed to increase search visibility. The layout of the site is intended to work on all browser platforms equally and can even be viewed on mobile phones. Feel free to leave us some feedback about the new website.
A new report released today by the Center for Medical Progress at the Manhattan Institute finds that Health Savings Accounts are becoming more popular and have shown significant health care cost savings. Read the full article at Medical News Today.
