The maximum contribution permitted to a Health Savings Account (HSA) has been increased for 2012:

        $3,100 for an individual with self only coverage
        $6,250 for an individual with family coverage

In addition, an individual over the age of 55 is permitted a $1,000 catch-up deduction.

Contributions to an HSA are 100% tax deductible and you can contribute up to the maximum even if your deductible is less;  the minimum annual deductible for qualified health insurance is only $1,200 for self-only coverage or $2,400 for family coverage.   Unused amounts in your HSA continue to grow tax free and can be considered an additional form of retirement income after age 65, much like an IRA.


For more information check IRS Publication Rev. Proc. 2011-32.

Between jobs and suffering sticker shock at the cost of COBRA?  Most people and employers are unaware that Short Term Medical insurance is a simple, affordable option.  Generally available on a next day basis, easy to apply for online, and with the cost about a third of the cost of a COBRA plan, employers can expand their benefit package by offering next day coverage to their employees during their health insurance waiting period.  Short Term Medical also gives employers the opportunity to provide coverage for temporary seasonal employees.   Not just limited to employer provided benefits, temporary health insurance is available to anyone under the age of 65.

Learn more about Short Term Medical at the HCI Benefits Temporary Health Insurance page.

Ronald Haines
ronald@hcibenefits.com
www.hcibenefits.com

When you complete an insurance application there will generally be a question about payment where you will be given the option of using a credit card, paying by check or having the premium automatically deducted from your checking account.  While this is a perfectly reasonable part of the application process, there are some insurance companies that do not require this information on the application at all.  Anthem Blue Cross in Ohio, for instance, gives you the option of receiving a bill once your application is approved.  Others, such as UnitedHealth, will collect credit card or checking account information with the application but will not take the payment until after the policy has been issued.   You don't have to pre-pay for an application to be processed so when you are buying health insurance make sure the insurance company doesn't have use of your money before you have a policy.


Video:  5 things to always do when buying health insurance.

Ronald Haines
ronald@hcibenefits.com
www.hcibenefits.com

Many people in America today take prescription medications or have a condition that is being treated or monitored by their doctor, so when someone is looking to change their health insurance carrier it is important to know how this will be handled prior to applying.  Anything that is ongoing is considered a preexisting condition and may be subject to a waiting period before it is covered by the new insurance.  Ask:
(1) What is the lookback period to determine if something will be considered pre-existing?  If your doctor took you off cholesterol medication almost a year ago, for example, know whether it would be covered if he put you back on it next month.
(2) How long will it be before something that is considered a preexisting condition will be covered?  For many insurance companies this is 12 months.
(3)  Will time spent on your previous insurance count towards satisfying the pre-existing condition waiting period.  If, for instance, you had been on a group policy through an employer and it was still in force or had not lapsed for more than 63 days you may be a considered a HIPAA eligible person.  Does the policy you want to apply for recognize this?
If you are taking a brand name prescription and don't ask about preexisting conditions before applying you could find yourself paying for your medication in full for the next 12 months and what you were paying a $30 copay for previously for could easily now cost you over $200/month.

Video:  5 things to always do when buying health insurance.

Ronald Haines
ronald@hcibenefits.com
www.hcibenefits.com

When you were first shopping for health insurance you probably compared several policies from different companies and the cost of the monthly premium undoubtedly ranked high in your final selection.  Now, when it is time to buy the policy, you should check to make sure that price is really available to you.  The price of a policy can fluctuate by more than double based on your height, weight, health history, smoking habits and prescription drug usage.  If you are in good health, do not smoke,  are not overweight and do not take any prescription medications then the quote you received is probably good but, if not, you can very easily get a quote that will be more specific for you if you make a simple phone call to the person that gave you the quote.  If you had been shopping online, go to that site and look up the contact information.  With a brief description of your particular situation the person you are speaking to should be able to give you a field underwritten quote, or best estimate.   In order to know exactly how much a policy for you will cost you would have to complete an application and submit it to an underwriter, but if you are speaking to a licensed broker he may be able to take that completed application and run it by an underwriter for you with no obligation on your part.  A broker who is in your local area will also be able to advise you which insurance company might be the most friendly in underwriting your particular situation.   Keep in mind that a local broker will also get you the same rate as the largest internet brokerage service since there is no purchasing power due to size; everyone is individually underwritten by the insurance company.

Video:  5 things to always do when buying health insurance.

Ronald Haines
ronald@hcibenefits.com
www.hcibenefits.com

Individual, or non-group, health insurance is guaranteed renewable until a person reaches age 65 when they become eligible for Medicare, so when you are buying health insurance it makes sense to do so with a long term perspective.  Is the person you are buying if from today be the same person who will help you at renewal a year from now when the rate increases?  If not, who will that be?  These are important considerations before making the decision to buy a policy, especially if you are doing so over the internet.  When shopping for health insurance online make sure the website you are using provides the name, address, and phone number of a real person you can talk to and check it out.  Make the call and ask if the person you are speaking to is the same person you can call back if you have any questions a few months or a year from now.


Video:  5 things to always do when buying health insurance.

Ronald Haines
ronald@hcibenefits.com
www.hcibenefits.com

Insurance is defined as the transfer of risk so when buying health insurance it follows that a consumer would be looking to minimize his or her financial exposure in case of a health related incident.  Surprisingly, though, this is not what the majority of people look at when comparing policies and many don't even consider the risk they are taking on at all when buying one.  So often, after someone makes a purchasing decision based on the cost of a doctor visit or a low deductible they are shocked when, after a hospitalization, they owe upwards of $5,000.   The most important question to be asking when buying a health insurance policy is, what is my worst case scenario.   What is the most I would have to pay in a given year?  Information which is clearly spelled out in most insurance proposals but which, unfortunately, is so often overlooked.

Video: 5 things to always do when buying health insurance.

Ronald Haines
ronald@hcibenefits.com
www.hcibenefits.com

This short video summarizes the 5 things to always do when buying health insurance online




For articles with more details click on the items below

#1  Know what you are buying
#2  Have a contact person you can call
#3  Get an underwritten quote
#4  Know how preexisting conditons are going to be handled
#5  Pay only after you are approved

Ronald Haines
ronald@hcibenefits.com
www.hcibenefits.com

As tempting as it may be to fudge your height an weight when shopping for health insurance or, worse, enter incorrect information on a health insurance application, don't do it.  Those questions are there to allow the insurance underwriter to give you a fair quote based on relevant factors and if you lie about it you may cause your application to be rejected.  Will the insurance company really know if you are taking a particular medication or not?  Absolutely!  There is something called the Medical Information Bureau, or MIB, which insurance companies subscribe to which tracks prescription usage and other information about you and in the fine print of your insurance application you are agreeing to them access it to do a search on you.  Even if you do manage to sneak through underwriting, if you experience a major claim the insurance company may conduct an audit and you could be found guilty of fraud.   Lying about your health is just not worth it.

Click here for a video of the 5 things never ro do when shopping for health insurance.

Ronald Haines
ronald@hcibenefits.com
www.hcibenefits.com

If a site you've clicked on to find information about health insurance asks you how you are going to pay for it or takes you to another page where you can verify your identity by providing your credit card information, quickly click away and move onto the next site.  There are hundreds of sites where you can freely, and anonymously, obtain what you are looking for.  The very earliest time that you should consider providing any of this information is after you have made your selection and are completing an application to make the purchase and, even then, some insurance companies do not require this.  Anthem Blue Cross in Ohio, for instance, will let you submit an online application without having to provide any payment information at all.  Be careful when browsing the internet and never provide payment information when you are simply shopping for health insurance.

Click here for a video of the 5 things never to do when shopping for health insurance online.

Ronald Haines
ronald@hcibenefits.com
www.hcibenefits.com