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Is Short-Term Medical Insurance Right For You?

10/03/2008

Maybe you've changed jobs, or started a new job, and the health coverage doesn't take effect right away. Or, you've finished college, and are no longer covered under your parents' plan. Perhaps you may be between jobs, and don't know when you will get another job with health benefits.

Even a minor gap in insurance coverage can be cause for worry, because medical bills paid out-of-pocket can be financially devastating.

If this is the case, then short-term medical insurance may be appropriate. When you leave a job, you can choose to continue your coverage under the COBRA act of 1985, or get temporary coverage as your state laws dictate. Or, you can elect to purchase a short-term medical plan.

Weigh the pros and cons, and decide which choice is best for your situation.

Short-term medical insurance is best for those who are in good health, and have no pre-existing conditions. One of the biggest appeals of a short-term plan is its low premium. Depending on the policy, benefits can be up to $2 million per person. However, most policies have a limit on how long they last. The majority last for 12 months, although some insurers have plans with coverage up to 36 months. Short-term insurance can be bought in one-month increments, making it easy to drop the benefits at the end of any given month.

Surgery, hospitalization, emergency room visits, diagnostic tests, prescription drugs, follow-up visits, and limited mental health care are included under most short-term health policies, but under limits and conditions.

Because of its low cost, short-term health insurance does not usually cover routine preventative care such as physical exams, immunizations, and PAP tests. A good rule to remember with short-term health coverage is that it doesn't pay unless you've actually suffered an illness or injury for the first time during the policy period.

Most companies offer a 30-day guarantee period, and will refund 100% of your premium within this time if you decide that you don't want the policy . To get your money back during this window, however, you must not have filed any claims.

With some short-term medical plans, your deductible will apply on a per-injury or per-illness basis. After you've paid the deductible, most insurers will pay up to 50 or 80% of the next $5,000 of medical bills before 100% coverage takes effect, up to the plan maximum.

A short-term health insurance policy works like an "indemnity" plan that gives you the choice to go to any doctor or specialist you like. However, most plans do require pre-authorization, requiring that you obtain approval from your insurer before you are hospitalized (except for emergency treatment). If you don't get pre-authorization, your insurance company won't reimburse you.

If you aren't one of the 170 million Americans covered under an employer plan, short-term health insurance may be an appealing, less expensive alternative. We offer short-term medical from Assurant Health and you can begin the application process at our homepage.

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Medicare 101: Understanding the Basics

09/16/2008

Since being enacted in July of 1965, Medicare has become an important part of American life. According to the Center for Medicare Advocacy, approximately 44.8 million people are expected to be enrolled in Medicare in 2008, up from 43.1 million in 2006. Medicare not only provides healthcare coverage for people aged 65 and older, but also people under the age of 65 with certain disabilities, and people with End-Stage Renal Disease.

While Medicare with its many benefits and parts may seem confusing at first glance, there is a vast amount of information readily available to help you make an informed decision about which plan best meets your healthcare needs. The four major parts that make up Medicare are Part A, B, C, and D.

Medicare Part A covers inpatient hospital services and skilled nursing facility stays. Its benefits also cover some short-term home health care and hospice care, providing certain conditions are met. Part A and Part B Medicare are often referred to as the "Original Medicare". There is no fee for Part A Medicare.

Medicare Part B covers outpatient services such as doctor's visits, lab tests, hospital treatments that are not inpatient, and other basic medical care including preventative services. Part B usually will pay 80% of a service covered by the program and you will be responsible to pay the other 20% along with a yearly deductible amount and a monthly fee.

Medicare Part C or Medicare Advantage plans include both hospital and outpatient services, similar to Part A and Part B, but are provided by private insurance companies that have been approved by Medicare. Most plans will provide you with a list of doctors that are approved by the plan. Usually Medicare Advantage plans require you to see a doctor on their list, or your medical service may not be covered. Additional costs such as copayments, coinsurance, or deductibles are often part of the Medicare Advantage plans. Costs can vary greatly depending on the plan. Prescription drug coverage and dental or vision care may be included in Medicare Advantage Plans at an additional cost.

Medicare Part D is also known as the Medicare Prescription Drug Plan. These plans are optional and are also provided by private insurance companies. Each prescription drug plan will have different costs and will cover different prescription drugs. It is very important to be careful when choosing a Prescription Drug Plan to be sure the prescriptions you are currently using are on the plan you choose and a pharmacy you want to use is also included in the plan. Medicare Part D may not only lower your current prescription drug costs, but it may help protect you against higher costs in the future.

Medicare Supplemental coverage or Medigap plans are provided by private insurance companies. They pay for health expenses that Medicare doesn't cover, such as co-payments. There is an additional cost for these supplemental plans and costs vary depending on the plan you choose.

The first step in choosing any healthcare plan is determining what healthcare benefits you want and need. The coverage you choose will not only affect your current, but also your future health care. Medicare has been a life saver for many older Americans over the years, providing access to affordable healthcare to more older Americans than ever before.

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Millions of Americans Uninsured!

10/03/2008

As children, we never dreamed of the day that our country would be faced by such a health insurance crisis. According to Income, Poverty, and Health Insurance Coverage in the United States, the number of uninsured Americans would increase to a record high of 47 million people in 2006. That is over 13 percent of the population. As a nation, we cannot say that we didn't see it coming. Healthcare costs were on the rise; unemployment was on the rise too. The cost and development of new technology would continue to increase as would gas and transportation costs. All of these had a major impact on the healthcare industry.

Some American simply claim they cannot handle the increasing cost of healthcare. Meanwhile, some employers do not even afford coverage to employees. And for those that do, many Americans continue to lose their coverage as companies downsize and turnover employees. So all the while, those who may in fact need the healthcare coverage most are stuck standing out in the rain.

No one has to be stuck in that position. Since 2006, healthcare has taken a turn in the opposite direction. America has seen over a 1% increase in health insurance coverage. This is not to say that we will see the same healthcare costs that we became accustomed to only 2 decades ago, but healthcare is becoming somewhat affordable again. And as cost of insurance improves, most of us will continue to hope that we will see a correlation in the extent of coverage as well.

Healthcare is a hot topic of discussion, especially during this election year. Some believe that it is up to the government to take action to get America out of yet another crisis. But regardless of what the government plans on or objects to doing, it is important that individuals take note of their own healthcare situation. After all, it is the individuals who will actually be impacted by these circumstances.

Purchasing insurance coverage is now simpler than ever. Today, we see more individual healthcare companies on the rise, opening new doors and opportunities for those without coverage. Companies like these are making it nearly impossible to not have healthcare coverage or insurance. Health insurance is readily available through a simple search online or by directly contacting health insurance providers regarding personal health insurance.

Imagine your child lying there ill and you not being able to do anything about it. It is up to you to protect your family. And if you don't, who will?

Ultimately, that choice is left up to the individual level. Yet in the long run, those without insurance coverage may find themselves further in debt than if they taken advantage of these opportunities in the first place. And these will be the Americans left standing in the rain.

Source: C. DeNavas-Walt, B.D. Proctor, and J. Smith. Income, Poverty, and Health Insurance Coverage in the United States: 2007. U.S. Census Bureau. August 2008.

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Buying Insurance Online: A Growing Trend

09/16/2008

Although traditional methods of purchasing and maintaining insurance aren't likely to disappear anytime soon, the option to purchase policies online is the fastest growing method of distribution for insurance product, and appears unlikely to lose popularity any time soon. Too many customers are calling for innovative products that take less time and add less inconvenience to their already hectic lives, and insurance companies are answering that call by selling their products online.

Benefits to Consumers

As consumers became comfortable purchasing products on the Internet in the 1990's, insurance companies began to offer policies online. As technology and information sharing grew more and more reliable, online aggregators began to collect information on policy prices. These aggregators allow consumers to compare the costs and coverage between companies. Although many consumers purchase insurance online, an even greater number research online before purchasing more traditionally through an agent. Comparison shopping benefits consumers by providing them with more variety of choice in coverage and price. This availability of information to consumers in almost instant, and thus increases competition between insurance companies to provide a quality product at a competitive price.

For most online insurance purchasers, ease of comparison shopping, personal convenience, and savings are the top reasons for using online services. Before online comparisons for insurance premiums were available, shoppers got on the phone or in the car and spoke to an agent. This made comparison shopping take longer and added agent pressure tactics and inconvenience to the cost of purchasing insurance. Purchasing online takes away the salesperson pressure, and allows customers to take time and review the differences in coverage as well as in price. Further, the only appointment online shoppers have to make is with their laptops!

For those who crave a little human contact, or have questions, over 80% of sites offering online purchasing have links to contact an agent available, and the ability to contact an agent or representative to insure there are no unforeseen gaps in coverage or to get answers to questions consumers might have is another service online insurers offer their customers. Agents are trained to help consumers find the policy that covers them comprehensively, and to answer questions about the product.

Purchasing online insurance is certainly easier and more convenient, but is it really cheaper? Purchasing insurance online saves consumers an average of $600.00 per year, but insurers insist that the policies are not cheaper online. Insurance companies point out that the online format allows for more comparison shopping, which is what generally saves the consumer money.

Benefits to Insurance Companies

Insurance companies save money on commissions when consumers purchase policies directly from the company, because they don't have to pay the agents. Further, as policies purchased online generally require less paperwork and man hours to process, companies save time and money in this way as well.

Insurance consumers like online product. This benefits companies because policy holders use insurers that offer product that benefits them and cater to their lifestyle. Some companies are beginning to allow policies and proof of insurance to be printed offline, which makes the company seem greener to environmentally conscious consumers. Other companies donate to environmental causes out of online sales in an effort to support the growing interest in green lifestyles of many of their purchasers.

Future of Online Insurance Sales is Bright

Recent research shows that 21 percent of all new customer insurance sales occur online, according to the Insurance Information Institute's online discussion (http://www.iii.org/media/hottopics/insurance/distribution/?table_sort_782813=5). This is a significant amount of purchasing power.

This trend seems to be growing quickly. The Insurance Information Institute also reports a 37 percent increase in online sales from 2006-2007. The increases are expected to continue. The largest anticipated increase is in the auto insurance industry, where Celent estimates online sales will increase from 70 percent of sales in 2007 to 90 percent by 2011. J.D. Power and Associates reports that 39 percent of purchasers switched insurance companies, up from 33% in the 2007 study.

Free quotes, less pressure, more choices, and added convenience have made shopping for insurance online a commonly used method of purchasing car insurance today, and the trend is becoming more popular daily. Policies are available for everything from auto insurance and life insurance to individual health insurance, and consumers are appreciative of the added conveniences this type of service offers. According to J.D. Power's most recent survey, consumers will likely continue to make the switch into 2009.

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