Quick Insurance Tips

It is obvious that a policy that covers less is a less valuable policy. If the deductible is the only criterion that one considers, a high deductible or catastrophic health care coverage is a less valuable policy.  However there are other criteria to consider and therefore in many cases these policies are better for many individuals and families.

There are two big reasons why one should not automatically reject a catastrophic health care plan with a high deductible.

• A deductible is only one of the three main medical insurance cost shares.
• The savings realized with the premium that is low enough can make these plans more more affordable in the long run.

Since the deductible of a policy is only one cost share, one can inappropriately reject a high deductible plan in favor of a lower deductible plan. It is important to look at other information as well. Copays and coinsurance can add up. Many people don’t look at these cost shares and wind up paying a fortune in cost shares on their low deductible policies.

Copays aren’t only the small sums you might pay for service you get when you see your doctor and prescription drugs. You can have a copay for emergency room visits, hospital stays or outpatient surgeries as well. A $500 copay for each visit to an outpatient surgery center can destroy a family’s long term savings if a child needs multiple surgeries.

Coinsurance is also a factor. If there is a high cap on the coinsurance amount, this cost can be quite onerous as well.

It is also important to understand how the out-of-pocket maximum works on your policy. An out-of-pocket maximum generally does not apply to copays. This means that you can go bankrupt paying copays to your medical doctor, pharmacy, hospital and other providers long after you have met your out of pocket maximum.

When comparing major medical and other health care polices, be sure to consider all the cost shares. These cost shares include:

• Deductibles
• Coinsurance
• Copayments
• Out of pocket maximums

One pays the higher monthly cost of medical insurance policy with no deductible each and every month. However, most only pay their full deductible occasionally if they pay it at all. The money saved during the good years usually far outweighs the cost of occasionally meeting one’s deductible.

After looking carefully at all the factors in the plans offered to you by an agent or by your employer, you are likely to find that an affordable catastrophic healthcare plan is a better deal. Be sure to consider all the cost shares when considering insurance plans. Be sure to take into consideration the premiums for the coverage as well.

The cost of medical insurance per month depends on many factors. These factors include:

• the number of people to be insured
• their health history
• their ages
• their genders
• their home zip code
• the policy desired
• the policy options selected

Since there are so many variables the best way to determine your rate is to request quotes for monthly health insurance rates on a website like this one.

The prices in the article are based on the rates available to people in the State of Connecticut during the month of April 2011.

How Much Is Health Insurance for a Family?

As mentioned above, there are many factors that affect a health insurance rate. However, smaller, younger families will tend to pay less than larger, older families.

Typical rates for a young healthy couple where both spouses are 22 years old might range from $200 monthly to $800 monthly. (The ages and genders of the children won’t have much impact on the rate.) This assumes that the couple doesn’t need maternity coverage. Plans with maternity coverage can cost $1,200 a month for this hypothetical young couple.

The differences in the prices are based primarily on the amount of risk the policy holder is willing to take. The $200 a month policy has a $10,000 annual deductible. The $800 a month policy has a $1,500 annual deductible.

An older, larger family will pay more for similar coverage. A healthy family with three children where the two parents are both 55 might pay $600 per month for a high deductible policy. They could pay $2,000 a month for a policy with a $1,500 annual deductible.

How Much Is Health Insurance for One Person?

A healthy 22 year old man might pay $90 a month for a high deductible policy. His rate might be $500 or more for a low deductible policy.

A woman of the same age can expect to pay $112 a month for the high deductible policy and over $700 for the low deductible policy. Women tend to see doctors more often than men during their childbearing years even when they are not pregnant.

Atypical monthly health insurance rate for a 55 year-old woman might be $248 for a plan with a $10,000 deductible. Her rate for a $1,500 deductible policy might be around $900 a month. The rates for a man the same age will be very similar.

How Much Is Health Insurance for a Baby?

Most insurers will charge less the younger you are. However, very young children tend to need more medical care than older children. Because of this some companies charge more during the first two or three years of life.

Few companies are offering one-person policies to children today. At least one parent will need to be on the policy for the policy to be approved. This is an unintended side-effect of health care reform.

How much is health insurance in America?

The cost is somewhere between too much and way too much!

We can blame some of the cost of the current policies on health care reform. However, anyone who has been paying attention to the health insurance industry will know that health insurance prices have been steadily increasing for years and years.

Some of the additional cost of health care reform is the price for the mandated benefits which make the policies better. Most of the rest of the additional cost is the result of insurance being available to certain persons that would have been denied in the past.

The monthly cost for health insurance may be higher than we would like. However, the cost of health insurance is almost entirely driven by the cost of medical care. Until we address the cost of care by helping Americans lead healthier lifestyles, the cost of health insurance in America will continue its upward climb and may even increase at a faster pace.

The subject of no deductible health insurance plans often comes up when speaking with clients. Many people want a zero deductible policy that has a low premium.

Unfortunately that combination doesn’t exist. Medical insurance policies with no deductible or with low deductibles will almost invariably have higher premiums.

There are two reasons why I generally advise people to look at other plans to cover their families. Zero deductible doesn’t give the consumer all the information he or she needs to make a decision.   Even when these health insurance plans with no deductible do give better coverage than their high deductible cousins, it is at a price that is usually greater than the extra coverage is worth.

This usually is the case with Blue Cross, Humana, United HealthCare or any other insurance company. The high deductible policies usually save their policy holders enough to make their coverage so much more affordable even with the extra exposure.

When people have only had health insurance as part of the benefits package offered by their employer, they are usually shocked when they hear the price of these types of policies. Since their employer paid part of the premium, they have bad information regarding the price of this type of coverage.

A no deductible policy is a very different animal than a policy with no cost shares. Medical insurance policies have three major ways to get you to pay for part of the medical care you receive from doctors and other providers.

The main three cost shares for medical expenses are:

• Deductibles
• Copays
• Coinsurance

You can have a policy with a zero deductible that has high copays. This can mean that you won’t save as much as you thought you would when you have expenses for medical care.

When purchasing health insurance plans, the consumer should be sure that they are getting a dollar’s worth of coverage for each dollar they spend. If you spend an extra $1000 each year for a low health insurance deductible policy when compared to the prices for a moderate deductible policy, you should not only get a better policy but you should get a policy that is at least $1000 better per year. This is rarely the case.

Before deciding to purchase health insurance with no deductible, be sure to look at plans with higher deductibles also. See what else you might have to pay in copayments and coinsurance when you need medical care from a doctor or other provider. And do the math to make sure that you will get what you paid for.

If you don’t know how a health insurance policy works, you can’t make good decisions about your coverage. If the only thing that you are sure about is how much you pay each month, you may be very unpleasantly surprised if you ever have a significant medical expense.

There are three major health insurance cost shares. Not all policies have all three, but many do. The cost shares are:

• Deductibles
• Copayments or Copays
• Coinsurance

It is important to understand all three if you are to make good choices when it is time to purchase your next health insurance plan. You need to know your potential benefits as well as costs.

A health insurance deductible is a specific amount you have to pay before your insurance company pays for certain expenses. On some policies the deductible may apply to hospital stays, but not to doctor visits and not to medications. On other policies your deductible may apply to all medical expenses regardless of the type of provider except certain preventative care costs.

On most policies the deductible is based on health care expenses incurred during a twelve month period. This twelve month period may begin on January first or on the effective date of the coverage and its anniversary.

You can reach your deductible buy paying toward the cost of one major expense or by paying for several smaller ones.

Coinsurance is not based on a specific dollar amount. Coinsurance is stated as a percentage. The typical coinsurance percentage is 20%. However, many policies have 10% coinsurance. Some have 50% coinsurance.

Coinsurance, usually applies to the same types of expenses that your deductible applies to. However, typically you don’t pay coinsurance until you have met your deductible.

If you have a $1,000 deductible, 20% coinsurance and eleven doctor bills of $100 each, you will pay for the first ten visits and pay 20% of the eleventh visit.

Coinsurance is typically limited by your out-of-pocket maximum. Your out-of-pocket maximum may also be known as your stop loss. This can make a big difference in what you need to pay if you have a long-term hospitalization.

The out-of-pocket maximum limits what you have to pay in coinsurance over the course a period of time. That period of time is usually a year.

Copayments are usually smaller dollar amounts that you have to pay whenever you have specific types of medical expenses such as medications. You may have a $20 copayment for each prescription that you fill. You may have a $30 copayment when you have a doctor’s visit.

Copayments are often larger dollar amounts. You may have a $500 copayment for each day in the hospital or a $100 copayment for each visit to the emergency room.

Sometimes the larger copayments are limited, but typically there is nothing in the contract that limits the number of copayments you have to pay. Your out-of-pocket-maximum is not likely to limit your outlays for copayments.

When comparing policies, be sure to learn what expenses the deductible, the coinsurance and copayments apply to. Policies are often very different but often use similar language. Also be aware that not only are companies different, but even health care policies offered by the same company can also be very different. Be sure to ask your agent about anything that you are unsure about.

Your insurance deductible is one of several cost shares that you may have on your insurance policy. Cost shares are what you the policyholder have to pay when you have a claim.

On car insurance policies and homeowners insurance policies your deductible is applied to each claim. On medical insurance policies, the deductible applies to claims made over a period of 12 months. This can be a calendar year, or a year that starts on the date the policy was effective.

Car Insurance

When you buy car insurance your policy only has a deductible if you have physical damage coverage. Physical damage coverage pays you if your car is damaged by one of the covered perils. One of the perils is vandalism.

If it costs $3,000 to repair your car after it is vandalized and you have a deductible of $1,000, your insurance company will pay $2,000 towards the repair. The amount of your deductible is deducted from the amount of the claim.

On a car insurance policy the deductible only affects the physical damage coverage. This part of your policy pays you for damage to your car. Your deductible will not apply to payments made to fix another party’s car.

(The section of the policy that covers property damage and bodily injury payments to others is the liability section. This section never has a deductible.)

The only cost share on auto and homeowners insurance policies is the deductible. This is not the case for many medical insurance policies.

Health Insurance

You can expect to have more than one type of cost share when you purchase health insurance coverage. You might have copayments, coinsurance and a deductible.

You might have no cost shares on certain types of claims; you might have more than one type of cost share on other types of claims. A preventive care exam might not have a deductible or any other cost share. A doctor visit for the flu might have both a deductible and a copayment.

There is a lot of inconsistency to the way these cost shares are applied. Copayments, coinsurance and deductibles can be applied differently to different types of expenses. The rules will be different on different policies. This is often the case on different policies offered by the same insurer.

A copayment is paid per incident. You might have a $20 copayment for each prescription refill. You might have a $30 copayment for each doctor’s visit.

Coinsurance is always expressed as a percentage. The most common coinsurance percentage is 20%. For certain types of claims, you may have to pay your 20% coinsurance.

You can expect to have annual limits on your deductible and your coinsurance. This reduces the amount you have to pay if you have a catastophic claim.

Your will have only one deductible over the course of the year. You can reach this deductible in by having one larger expense or several smaller expenses. If you have a $2000 deductible, you might satisfy that deductible by one $2,000 visit to the emergency room or by ten $200 visits to your doctor.

Coinsurance is usually limited by your out-of-pocket maximum or stop-loss. When you have paid a certain amount, you can expect to stop paying coinsurance. You might have a maximum coinsurance of $2000 on some policies. Your copayments may or may not be limited.

If your policy has a deductible, you will probably have to satisfy your deductible before your coinsurance goes into effect. In another words if you have a $1,000 deductible, you will have to pay the first $1,000 of applicable expenses over the course of the year. You will have to pay the coinsurance percentage on any expenses that you have until you have met your out-of-pocket maximum.

What Happens to an Insurance Premium when a Deductible is Lowered?

Higher deductibles mean lower insurance premiums and vice versa. Deductible choices give the consumer choice. The consumer can decide how much risk they are willing to accept in exchange for a lower price.

The objective when choosing a deductible should be to find the best balance between your risk and your monthly premium. Usually a moderate or a higher deductible will give the consumer the best value.

There are very common, very costly mistakes that self-employed people make regarding their health insurance.  Failing to investigate different options, failing to get the right deductible, failing to investigate the insurance company and failing to research your options on a regular basis can be very costly .  Avoiding these mistakes can keep you from paying to much when you are looking for medical insurance For self employed.

One mistake is in assuming that health insurance policies designed for the self employed will always give them a better rate.  Those who have one, two or three employees will often do better by purchasing separate individual or family policies.  Often, but not always, the best rate will be found through a spouse’s employer.

If you are healthy, you will almost certainly get the best rate by purchasing and individually underwritten policy.  Unlike most group insurance policies, they will look at your health history before deciding whether or not to insure you.  Because they are allowed to say “no” to those who are less healthy, they are able to give better rates to those who are healthy.

Another option to investigate is getting coverage through your spouse or domestic partner’s insurance.  Often these policies are subsidized by the employer.

You may find that only your spouse’s part of the coverage is subsidized.  If this is the case, you should take out a calculator and determine whether or not it makes sense for the whole family to be on one policy or for your spouse to have a separate policy from the rest of the family.

Another too common mistake is to fail to consider high-deductible policies.  A high deductible policy will usually have a low monthly premium.  Again you will need to do a little arithmetic to see what deductible level makes the most sense for you. If your premium goes down two dollars for every dollar that is taken away in benefits, a high deductible policy might be a good deal.

Any insurance company you are considering should be in good standing with your state’s insurance department.  Be sure that there aren’t too many complaints about the company you are considering and that they are approved to sell in your state.

The financial stability of the company is also important.  You may want to check with A.M. Best or another rating agency to make sure that the company has a good rating.  You want your company to be there when you need them to pay your claim.

Health insurance has always been subject to rapid change.  This is true today more than ever.

Health insurance prices are subject to change on a very regular basis.  You don’t want to be caught with the policy that was the best bargain two years ago.  Make sure that you look at your options once a year or at worst once every two years.

You don’t have to pay too much for health insurance or get caught with poor coverage.  To avoid paying too much or getting poor coverage, be sure to look at all your options, investigate moderate and high deductible options and investigate your insurance company.  Finally remember to look at your options again no less frequently than every two years.

It is important to distinguish between a discount card that is not connected with insurance and a card from an insurance company that allows you to pay the insurance company’s negotiated rate.  Both may have their place, but it is important not to overpay for a discount card because you believe that it provides more coverage than it does.

If you have health insurance, you will probably pay the insurance company’s discounted rate for services and prescriptions when you present your card.  This rate is also known as the negotiated rate.  In this sense your ID card becomes a health insurance discount card.

However, your ID card (or the insurance behind it) provides you with more than a discount on medical services.  It probably limits the amount you would have to pay out of pocket in a catastrophic situation.

You may have a $5,000 out-of-pocket limit on your policy.  This can mean that even if you have a $75,000 hospital bill your costs are limited to $5,000.

(With some policies you will continue to pay your co-pays even if you have met your “out-of-pocket-limit”.  Also your deductible may be separate from your “out-of-pocket-limit.”  This can mean that you pay your deductible plus your “out-of-pocket-limit.”)

With a discount card you may get 10% or 25% off any covered services but there will not be a limit to what your costs can be.  This means that in a scenario where you have a $75,000 medical bill and get a 25% discount, you will still be responsible for $56,250 of the costs.

Unfortunately, some of us cannot afford or cannot medically qualify for health insurance.  A discount card that is not connected with a health insurance policy can reduce your bills if health insurance is not available to you, but it is important that you know that that there is a big difference between a discount card and health insurance.

If you are planning to buy health insurance in the near future, there are several things that you should consider. They include:

• The Network of Doctors and Hospitals
• The Deductible and Co-Pays
• The Insurance Company

The Network of Doctors and Hospitals

An insurance company’s network is paramount when selecting a private health insurance policy. It may create problems for you and your family if your local hospital isn’t in the network. It can be inconvenient for you to get procedures done. It may also be inconvenient for your visitors.

Of course if you are satisfied with your physician and he or she isn’t in the network this can also cause problems. Some plans will compensate out-of-network doctors at a lower rate. Some will not compensate them at all. You may be forced to choose between a low cost health care policy and your favorite doctor.

The Deductible and Co-Pays

It is important to achieve the right balance between your monthly premium for insurance and the coverage. Low deductible policies tend to cost more and high deductible policies tend to cost less. However as it regards health insurance, you don’t get what you pay for. You get the benefit of your research.
You may find that a low health insurance policy that costs twice as much as a high deductible policy delivers only fifty percent more in benefits. It is true that you will get more if you pay more, but it isn’t necessarily true that you will get an extra dollars worth of extra benefits for each extra dollar you spend.

The Insurance Company

The company you choose will of course be important as well. Be sure that the company you choose is approved by your state’s insurance department and has a reputation for paying its claims.

Buying Health Insurance Summary

Buying health insurance can be complicated, but buying the wrong policy can have a devastating impact on your financial well being. It is important to be aware of more than just the price. The network, the benefits including the deductible and co-pays and the insurance company behind the policy are all important issues to consider.

Health insurance with no deductible is often not as good of a deal as it sounds. These plans are often overpriced and/or designed to be misleading. It is important to know whethera no deductible health insurance policy is a good deal or not.

Zero Deductible PPO Or HSA Which Is Better?

Private health insurance with no annual deductible can be very pricey. Although these plans can be much better plans than medium deductible or high deductible plans, it doesn’t mean that they are better after the cost is considered. Very often a high deductible HSA policy will be a better buy.

If you are comparing a no deductible health insurance policy with a high deductible policy and the zero deductible policy costs $500 a month less, your question should not be “which one is better?” it should be “is the more expensive plan $6000 a year better?”

Don’t forget about insurance coinsurance and co-pays!

0 deductible health insurance policy isn’t necessarily a 0 cost share insurance plan. A no deductible health insurance policy can have co-pays. It can also have coinsurance. These cost-shares can, on many policies, be quite substantial.

Medical Insurance with no Deductible is available from Aetna in Connecticut. Because of the policy’s coinsurance limit, this plan has a high out of pocket maximum that one needs to be aware of when comparing it with other policies. Low cost no deductible health insurance in Georgia is no different. You need to know how a policy’s coinsurance and copays work before making a final decision.

Make sure that you understand how to compare policies with different deductibles and prices. Make sure you know about the other things you might have to pay for on a no deductible health insurance policy. Only when you understand the whole story can you whether a zero deductible plan is better than an HSA policy or some other high deductible or medium deductible medical insurance policy.

Finding health insurance for unemployed people often involves comparing policies with some of the same carriers that insure businesses. This means that an individual can be insured with a company he or she trusts.

While you are unlikely to find free health insurance for the unemployed, there may be low cost options available. Believe it or not, individually purchased health insurance policies are often less expensive than group health insurance plans even when you get similar coverage with the same company!

The reason that individually purchased health insurance is often less expensive than employer-sponsored plans is that an individual who purchases insurance has to be medically underwritten in most cases. This allows the company to exclude those who have significant medical conditions. They usually restricted from asking medical questions of individuals who apply through their employers. This means that the insurance company’s costs are higher for group coverage.

If you are looking for health insurance for the unemployed in Connecticut our agency can help you directly. If you need Wyoming unemployed health insurance or health insurance in another state, please use the form at the top of the page.