Responsible Healthcare Blog

Increase your HSA contribution and get a higher tax deduction in 2012

2011-06-14T18:01:00Z

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.

Temporary health insurance can start tomorrow for 1/3 the cost of COBRA

2011-05-02T12:47:00Z

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

Only pay for health insurance after you have been approved

2011-04-11T19:34:00Z

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

Know how preexisting conditions will be handled when buying health insurance online

2011-04-11T19:32:00Z

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

Always get an underwritten quote when buying health insurance online

2011-04-11T19:31:00Z

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

Always have a contact person to talk to when buying health insurance online

2011-04-11T19:29:00Z

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

Always know what you are buying when buying health insurance online

2011-04-11T19:27:00Z

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

5 things to ALWAYS do when buying Health Insurance online

2011-04-11T19:06:00Z

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

Don't lie about your health when shopping for health insurance online

2011-04-11T19:06:00Z

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

Never give payment information when shopping for health insurance online

2011-04-11T19:06:00Z

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

Don't fall for a low premium when shopping for health insurance online

2011-04-11T19:06:00Z

You're comparing two health insurance plans, each with office visit copayments of $25 and the same coverage for prescription drugs, but one has a $500 deductible yet costs the same or slightly less than the other which has a $1,000 deductible. Doesn't that make it a better deal? Not necessarily; in fact, the $1,000 deductible plan may actually provide you with better coverage. Unfortunately, many people don't look beyond copays and deductibles when shopping for health insurance. The real question to ask is, what is my maximum out of pocket with this policy? In most cases there is something called coinsurance after a deductible is met, the most common being 80/20, but can also be 90/10, 70/30 or 50/50. Coinsurance means the percentage share the insurance company, the first number, and you, the second number, will pay after you have met your deductible until you have spent a prescribed maximum out of pocket, at which time the insurance company will pay 100%. What if the $500 deductible plan was then 50/50 until you had spent a maximum of $5,000 out of pocket whereas the $1,000 deductible plan was then 80/20 with a maximum out of pocket of $2,500? This is not deceptive marketing, just different plan designs, and it is incumbent upon you to be a good consumer. Never fall for a low premium when shopping for health insurance.

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

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

Never provide contact information when shopping for health insurance online

2011-04-11T19:05:00Z

You're shopping around for health insurance on the internet and you come across a site that promises to send you multiple quotes from different carriers if you enter some basic information about yourself and provide your email and/or phone number. Don't do it. If yo do, you'll be besieged by phone calls and email that will carry on for months and you'll more than likely end up becoming very annoyed. In most cases these sites are not insurance companies or brokers but lead generating sites, websites set up by companies who'll then sell your information to upwards of 8 brokers. This is a very lucrative business and, as such, these lead companies can afford the paid positioning to place them at the top of health insurance searches. Click down through a few of the search engine results to find a company that will give you this information anonymously. For a good example, feel free to take a look at our brokerage website, www.hciohio.com, which we set up for people searching for health insurance information in the state of Ohio. Remember, never provide contact information when you are simply shopping for health insurance online.

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

Ronald Haines
www.hcibenefits.com
www.hcibenefits.com

Never give personally identifying information when shopping for health insurance online

2011-04-11T19:05:00Z

You're interested in finding what health insurance options are available to you and, since you're just shopping around, you decide to search the internet rather than call a broker or insurance company. After all, the information you want about plans and networks and rates should be out there and you'd like to do some comparisons before you decide whether or not to buy. This is a great idea and, yes, all that information is readily available on the internet. You enter some search parameters and thousands of responses pop up so you click on the first one. If there is a question asking your name or address, click off and go to the next one. Never give such personally identifying information when you are shopping, it is absolutely not necessary. All that is needed to give you a basic quote is your age, sex the state and county or zip code where you live and, with some insurance companies, whether or not you smoke or your approximate height and weight. There should be no obligation whatsoever and a good website will offer you all the information you seek instantly. For an example please feel free to go the site my brokerage provides in the state of Ohio, www.hciohio.com, where we happily give this information to anyone who is interested, then search for one offering a similar service in the state where you live in. Never give personally identifying information when you are simply shopping around.

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

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

5 things to never do when shopping for health insurance online

2011-04-11T19:05:00Z

This video details the 5 things you should never do when shopping for health insurance online.

For articles with more information click the item below

#1 Never give personally identifying information
#2 Never give your contact information
#3 Never give payment information before applying
#4 Don't lie about your health
#5 Don't fall for a low premium

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

How to buy health insurance online

2011-04-11T19:04:00Z

The internet is a wonderful resource for researching health insurance and, as long as you are careful, you can learn about plans available to you, which doctors and hospitals participate and even generate rates at no cost and with no obligation. Until you are ready to buy, however, it is important that you remain anonymous to avoid being bombarded with unwanted email and phone calls. The information in this series shows how to do that.

The first part addresses what you need to know before you even go online, the four types of result you'll see when you perform an internet search and the truth about rates.

Next are the five things you should never do when shopping for health insurance online, why it is important to remain anonymous and how to accomplish that. You really can get all the information you want without having to give any identifying information.

Third, when you are ready to make an online purchase, the five things you should always do to make sure you are getting the plan you want and the insurance company doesn't have your money until you have your insurance in place.

Follow these guidelines and you'll have a great experience shopping for and buying health insurance online.

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

What you need to know before buying health insurance online

2011-04-09T23:30:00Z

When you search for health insurance online you'll see four types of results. The top one doesn't even sell insurance but is collecting your information to sell to those who do. The internet is a great place to to find rates and information about health insurance but make sure to watch this video before you do.

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

Cut your risk by increasing your deductible, a counterintuitive approach to health insurance

2011-04-08T13:51:00Z

Carol is a 45 year old writer and artist in Cleveland, Ohio who recently left her job to strike out on her own doing freelance work. Now a small business owner, she was also responsible for her own health insurance.  In general good health overall, Carol does have a diagnosis of anxiety and depression but it is well controlled by medication and a monthly visit to a counselor.  When shopping for health insurance Carol realized that the best health insurance plan for her was a high deductible HSA qualified plan because after she had met her deductible then her prescriptions and doctor visits would be covered in full, unlike a more expensive copay plan where these didn't accumulate towards the deductible.

The plan she selected was a $1,500 deductible with Anthem Blue Cross for $469/month.   This was a rated policy because of her condition, but with her maximum out of pocket capped at the deductible she could budget her annual health care costs at $7,128 (premium plus deductible), comfortable in the knowledge that anything else she needed would be covered in full.   This expense was also 100% tax deductible since as a business owner she is able to write off her health insurance premiums and the $1,500 is run through a Health Savings Account.

Thinking herself a savvy consumer, Carol was shocked to learn that she could have slashed her annual budget by over $1,400 if she had taken a higher deductible and taken on more out of pocket risk.   Her prescriptions were $200/month and her counselor visit cost $150, surely the difference in premium couldn't possibly offset the additional months of $350 out of pocket she would have to spend.   The fact is, the most money savings came by actually paying the entire year costs, $4,200, out of pocket.   The key to the math behind this counterintuitive approach is knowing that as she increases her deductible she becomes more attractive to the underwriters at Anthem.   At a $1,500 deductible, the insurance company knows they will be paying $2,700 so they account for this in the rated premium. With a $5,500 deductible, Anthem will have no known costs for the year and would therefore rate Carol as preferred, giving her an insurance premium of only $125, or $1,500 per year. Adding the known costs of $4,200 to that, her total annual costs would now be $5,700, a savings of $1,428.

What about other potential expenses? Carol would pay for them out of pocket since she still has $1,300 left on her deductible, but even in the worst case scenario she comes out $128 ahead.

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

New Laws Give Employees Money to Buy Individual Health Insurance

2011-04-06T11:18:00Z

Zane Benefits helps employers take advantage of new IRS laws (Section 125 and Section 105) that allow employers and employees to contribute tax free dollars to individual health insurance costs. Zane Benefits' solution involves a switch to employer-funded individual health insurance in which each employee receives a tax-free monthly allowance to purchase their own individual policy.

Individual health insurance used to be expensive and hard to get. However, due to healthcare reform, individual policies are now more affordable and accessible. For example, insurance companies must now accept children regardless of preexisting conditions, and guaranteed acceptance is being extended to all citizens over the next few years. Additionally, a new federal risk pool is now available for anyone who cannot find health insurance on the individual market.

Many employees are able to buy individual policies for less than the monthly amount funded by the company. The allowance can also be used for eyeglasses, dental care and other medical expenses. Today, there are various ways for all employees to get some kind of health coverage through state and federal programs.

Zane Benefits offers two options (“ZaneHRA” and “ZanePOP”) to employers that want to make the switch to employer-funded individual health insurance.

ZaneHRA, which is a defined contribution health plan, works best for companies that want to offer health benefits, but cannot offer group health insurance due to high cost or participation requirements. With ZaneHRA, employers offer a defined contribution health plan in which they make available monthly contributions ("allowances") that employees choose how to spend. Employees can use their monthly "ZaneHRA Allowance" to reimburse their individual health insurance costs and eligible medical expenses 100% tax free.

ZanePOP, which is a premium-only-plan for individual health insurance, works best for companies that do not offer health insurance or have employees who are not eligible for a group health insurance plan. With ZanePOP, employers allow employees to reimburse themselves for individual health insurance costs using pre-tax salary. Employees typically save 20-40% on their insurance premiums. Employers save an additional 7.65% in FICA taxes on all reimbursements.

Ronald Haines at HCI Employee Benefits is an authorized Zane Benefits consultant
ronald@hciemployeebenefits.com
www.hcibenefits.com

Employee mobility requires different model for employer provided health and dental benefits

2011-04-05T13:28:00Z

According to a recent study by Guardian Life Insurance Company of America, today's workers aged 18 to 45 forsee a lifetime of job mobility and career changes. With the number of career events close to double digits changing health and dental insurance each time poses a real downside to this mobility. Current benefit plan designs, established when society was very different and employees typically stayed with the same employer for many years, are, clearly, no longer up to the task.

With the recently enacted mandates, Healthcare Reform is rapidly accelerating movement to a new model. The benefits provided by individual health plans that are purchased today are at an equivalent level to those provided by group plans, so an employee can purchase a plan that best meets his or her needs on their own and keep it until they turn 65 when they enroll in Medicare. To attract and retain today's worker the most attractive employee benefit is, therefore, not the health or dental plan itself but rather the money to pay for the premium. This is permitted by establishing a Health Reimbursement Arrangement (HRA) or Defined Contribution Health Plan, a IRS approved plan that is an employer provided benefit subject to the same HIPAA and ERISA rules as a conventional group health plan. This model is also truly a win-win scenario. No longer concerned with the actual insurance employers are released from annual health and dental renewals and, since they are making defined dollar contributions, they are able to accurately budget expenses. Employees are able to keep the plan that they like as they move from one employer to another.

Say goodbye to employer group health insurance, this new model provides better benefits, predictable costs and happier employees.

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

Is the government encouraging small businesses to switch from group health insurance to defined contribution plans?

2011-04-04T11:48:00Z

A significant mandate with Healthcare Reform is the requirement for businesses to provide health coverage for their employees beginning in 2014, but it specifically exempts businesses with less than 50 employees. Last year the W-2 reporting requirement, requring amounts employers spent on health insurance for their employees to be listed on the employee W-2s, was made optional for 2011 and the IRS recently announced that this W-2 reporting will remain optional for small businesses until January 2014. Could this be a not-so-subtle message to small business to hurry up and convert from group health insurance to direct contribution employer health plans? Certainly, current market conditions make it very attractive financially to move employees to individual and family plans and with this mechanism, a Heath Reimbursement Arrangent or HRA, the benefit continues to remain unreportable to the employee.

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