Health insurance can be like a big ball of wax — so big, in fact, that many of us put it on the back burner rather than deal with it. But it's one of the most important decisions we have to make as consumers. Not only does it determine the care that we receive should our health take a wrong turn, but it can be the wild card in your financial plan. Roughly half of all bankruptcies filed in the United States are caused by illness and medical bills.
It’s still too early to tell if President Obama is going to be able to wrangle our healthcare system into taking on a new direction. Until then, choosing the right individual health insurance plan in Utah remains one of your most important decisions — not just for those people who are selecting from an employer's benefits menu, but for those 46.6 million uninsured Americans who are trying to put at least some coverage in place. Here is six tip’s to help you whittle down the choices and keep costs for premiums, co-pays and prescriptions from draining your bank account:
1. Location: Insurance plans and prices vary widely by state. New York, for example, has some of the most expensive individual plans in the country, largely due to its guaranteed-issue policy that requires companies to insure everyone, regardless of health. The best way to kick off your shopping is by doing a little research on your state's insurance Web site. A good site will list companies available in your area, prices for both individual and family plans, and any lower-cost options your state offers if you meet certain income requirements.
2. Write out your priorities: Do you love your current doctors? Then you should choose an insurance company that covers their service. "It's so important that you make a list of the top five things important to you, and bring them up to the broker or insurance company," advised Michelle Katz, a healthcare consultant and author of "101 Health Insurance Tips." This way you can really start to narrow things down by your needs, whether that means low premiums, customer service or the doctor you've been seeing since college.
3. Don't be afraid to use a broker: An insurance broker can be a huge help. He can do the legwork to find a well-suited insurance company, help shop for the best rates, and explain the ins and outs of your plan. You may also want to make sure he has a large "book," the industry term for the network of providers he works with. More options mean a better deal and a better fit. Also another important tip to keep in mind when choosing a broker say Bret Harding of Utah Insurance Solutions “most consumers don’t know that states regulate the rates insurance companies charge, this means that every insurance agent must quote the same rate for a particular health insurance company. Therefore, the best way to save money on a plan is to find an insurance agent that really knows the individual health insurance market and can recommend a specific plan to fit your individual needs.”
4. Consider Using a Discount Health Card Discount: Health cards can be a tremendous saving tool for consumers who actively use them, says Bret Harding with Utah Insurance Solutions. Discounted health cards don’t replace health insurance, but they can enable you to save on prescription drug costs so you can, perhaps, forgo the Rx plan that comes with many health insurance plans, and thus save you some money. Many prescription benefit cards are available for free or at a minimal cost. A great website to get an inexpensive card is: http://www.utahindividualhealthinsurance.com/.
5. Consider a Health Savings Account: An HSA is a great option for people who generally only have to whip out their insurance card once or twice a year. Maybe you go for a yearly checkup, and then to the doctor if you have the flu. It goes hand-in-hand with an insurance policy that has a high deductible ($1,100 for individuals; $2,200 for families), but low premiums. The money you save on premiums each month can be deposited into the HSA pre-tax, where it grows tax-deferred. You then use it to pay for any unexpected medical expenses. The bonus? Once you turn 65, you can withdraw any money you didn't use and spend it on anything you want, including funding your retirement.
6. Negotiate: You've chosen a plan, but you're still not home free. Bills can pop up everywhere, from services that aren't covered to doctor and hospital co-pays to costs for prescriptions. Many insurers have instituted a system of preferred pricing when it comes to prescriptions, meaning that if yours isn't generic and on a list, it could still cost a bundle. "Now, even people with employer coverage are having to be smart shoppers for prescription drugs, especially if they have a regular medication that is pretty expensive," said Lankford. Keep your costs low by shopping around (prices can vary among pharmacies — your best bet is a discount store or price club) and asking for generics whenever available. You can also have your doctor write out a prescription for a longer period of time, so you'll get a 90-day supply instead of a 30, advised Katz. The co-pay will be the same.
And don't be afraid to negotiate with your doctor if you're paying out of pocket. In a recent Harris Interactive poll, three out of five people who did so received a discount. With the cost of a single visit often tallying over $200, it's definitely worth a try.
For more information contact Bret Harding:Bret@UtahInsuranceSolutions.com
Visit: http://www.UtahInsuranceSolutions.com
Ph. 801-372-2647
Wednesday, February 25, 2009
Wednesday, February 18, 2009
Monday, February 16, 2009
Health Care Savings Tip’s for a Recession
Health Care Savings Tip’s for a Recession!
by Bret Harding
Times have gotten tough these days, especially for small-business owners. So in the wake of the aftermath I decided it’s time for someone to discuss money saving tips for small business owners. After all…containing your healthcare plan costs, might help ease some of the economic pressures bearing down on your business.
First off health insurance can be emotional; this is especially true in a small business setting. After all, we’re talking about your health and, in some cases, maybe even your life. If done right, you achieve the results necessary to not only attract and retain your employees, but also keep your group health insurance plan in place. Oh, and maintain your profitability as well! You can’t forget about that.
These three simple tips might help you offer great health care benefits at an affordable price:
Healthcare Savings Tip No.1 - Utilize Smaller Networks
An insurer's preferred provider network is a list of doctors, hospitals and other healthcare providers who have contracted with the insurer to provide care at discounted rates and handle paperwork with the health insurance company.
Most health insurance companies have both large and small provider networks. The healthcare providers in the smaller networks provide healthcare for deeper discounts than the larger networks. When you opt for the smaller networks, the insurance company passes along those savings to you through reduced insurance premiums.
Savings to the employer for offering the smaller network range from seven to 20 percent depending on the insurance carrier and the nature of the network offered. Keep in mind that your employees might find that the network doesn’t include some of their providers. However, if it comes down to using another provider versus not having health insurance, employees usually accept the smaller network. A smaller network still has out-of-network coverage available to the insured, though it might include a higher deductible, greater coinsurance exposure and, potentially, reasonable and customary claim cutbacks.
Healthcare Savings Tip No.2 - Offer HMOs
Health Maintenance Organizations remain valid and worth any employer's consideration even if some of the luster has worn off over the years. HMO plans continue to have the best price point for small business insurance coverage, so it's a great way to save on your healthcare costs.With an HMO, your employees get medical attention principally from the hospitals, doctors and other providers with which the HMO has a contract. Each employee works with a primary care physician who helps address their medical issues.
While it's a great way to save on your health insurance costs, many employees view HMOs negatively. For years, HMOs have had a reputation for denying medical treatment that would be granted in other coverage types or even offering below-average care. However, don’t be swayed by just talk -- look into any HMO you’re interested in.
Most HMOs offer excellent medical care, but even still every HMO is different. Do your due diligence on HMOs before making a final decision. It’s also good for you, as an employer, to pay for as much of the HMO premium as you can afford. If your employee wants the more traditional plan, then they should be required to pay the difference. This helps further cut company expenses.
Healthcare Savings Tip No.3 - Offer Health Savings Account (HSA) Plans with High Deductibles
You might save the most on small business health care insurance by using HSAs, which must be coupled with a high-deductible insurance health plan (HDHP). HSAs let your employees purchase routine health care services directly by using spending accounts. For example, a routine trip to the doctor's office would be paid for out of an employee's HSA. Non-routine expenses, such as a major health crisis, are covered by traditional insurance after employees meet a deductible.
An HSA savings account is established for each employee through a trustee or custodian. The employer contribution to an HSA account is non-refundable. After making it, you cannot recover it. When employees move to another company, they take their HSA accounts with them. There are no limits to accumulated HSA funds, which are tax exempt and can be invested.Compared to other types of insurance premiums, your savings with an HDHP for family coverage can average $1,400 per employee per year.
Although your employees may initially be skeptical of an HDHP, after a full explanation they’ll generally understand the advantages an HSA account combined with an HDHP. It’s truly win-win for both employers and employees. It’s good healthcare coverage at an affordable price.
The Bottom Line on Health Insurance
Small business health insurance costs might be skyrocketing out of control, but you can still lower other costs and offer employees excellent insurance coverage. You just need to be smart about it and keep both your employees’ well-being and your company’s bottom line in focus.
When defining your plans, you should know there’s help available to discuss all your options. If you have a local insurance broker you trust, they’ll almost certainly help you out as well.
I’ve outlined only a few tips out on how to save on health insurance, but there’s many, many more. If you have any others you'd like to share or have questions about ways to save money on small business health insurance, please call 801-372-2647, or email me at: bret@UtahInsuranceSolutions.com. You can also visit my website: http://www.UtahInsuranceSolutions.com
by Bret Harding
Times have gotten tough these days, especially for small-business owners. So in the wake of the aftermath I decided it’s time for someone to discuss money saving tips for small business owners. After all…containing your healthcare plan costs, might help ease some of the economic pressures bearing down on your business.
First off health insurance can be emotional; this is especially true in a small business setting. After all, we’re talking about your health and, in some cases, maybe even your life. If done right, you achieve the results necessary to not only attract and retain your employees, but also keep your group health insurance plan in place. Oh, and maintain your profitability as well! You can’t forget about that.
These three simple tips might help you offer great health care benefits at an affordable price:
Healthcare Savings Tip No.1 - Utilize Smaller Networks
An insurer's preferred provider network is a list of doctors, hospitals and other healthcare providers who have contracted with the insurer to provide care at discounted rates and handle paperwork with the health insurance company.
Most health insurance companies have both large and small provider networks. The healthcare providers in the smaller networks provide healthcare for deeper discounts than the larger networks. When you opt for the smaller networks, the insurance company passes along those savings to you through reduced insurance premiums.
Savings to the employer for offering the smaller network range from seven to 20 percent depending on the insurance carrier and the nature of the network offered. Keep in mind that your employees might find that the network doesn’t include some of their providers. However, if it comes down to using another provider versus not having health insurance, employees usually accept the smaller network. A smaller network still has out-of-network coverage available to the insured, though it might include a higher deductible, greater coinsurance exposure and, potentially, reasonable and customary claim cutbacks.
Healthcare Savings Tip No.2 - Offer HMOs
Health Maintenance Organizations remain valid and worth any employer's consideration even if some of the luster has worn off over the years. HMO plans continue to have the best price point for small business insurance coverage, so it's a great way to save on your healthcare costs.With an HMO, your employees get medical attention principally from the hospitals, doctors and other providers with which the HMO has a contract. Each employee works with a primary care physician who helps address their medical issues.
While it's a great way to save on your health insurance costs, many employees view HMOs negatively. For years, HMOs have had a reputation for denying medical treatment that would be granted in other coverage types or even offering below-average care. However, don’t be swayed by just talk -- look into any HMO you’re interested in.
Most HMOs offer excellent medical care, but even still every HMO is different. Do your due diligence on HMOs before making a final decision. It’s also good for you, as an employer, to pay for as much of the HMO premium as you can afford. If your employee wants the more traditional plan, then they should be required to pay the difference. This helps further cut company expenses.
Healthcare Savings Tip No.3 - Offer Health Savings Account (HSA) Plans with High Deductibles
You might save the most on small business health care insurance by using HSAs, which must be coupled with a high-deductible insurance health plan (HDHP). HSAs let your employees purchase routine health care services directly by using spending accounts. For example, a routine trip to the doctor's office would be paid for out of an employee's HSA. Non-routine expenses, such as a major health crisis, are covered by traditional insurance after employees meet a deductible.
An HSA savings account is established for each employee through a trustee or custodian. The employer contribution to an HSA account is non-refundable. After making it, you cannot recover it. When employees move to another company, they take their HSA accounts with them. There are no limits to accumulated HSA funds, which are tax exempt and can be invested.Compared to other types of insurance premiums, your savings with an HDHP for family coverage can average $1,400 per employee per year.
Although your employees may initially be skeptical of an HDHP, after a full explanation they’ll generally understand the advantages an HSA account combined with an HDHP. It’s truly win-win for both employers and employees. It’s good healthcare coverage at an affordable price.
The Bottom Line on Health Insurance
Small business health insurance costs might be skyrocketing out of control, but you can still lower other costs and offer employees excellent insurance coverage. You just need to be smart about it and keep both your employees’ well-being and your company’s bottom line in focus.
When defining your plans, you should know there’s help available to discuss all your options. If you have a local insurance broker you trust, they’ll almost certainly help you out as well.
I’ve outlined only a few tips out on how to save on health insurance, but there’s many, many more. If you have any others you'd like to share or have questions about ways to save money on small business health insurance, please call 801-372-2647, or email me at: bret@UtahInsuranceSolutions.com. You can also visit my website: http://www.UtahInsuranceSolutions.com
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