Debunking Common Health Insurance Myths

Health insurance can be a complicated thing, so it’s no wonder there are a lot of common myths about it that people subscribe to. It’s not easy to do the research, open your mind, and explore options you previously hadn’t considered. That’s why it’s important to dispel some common health insurance myths right off the bat.

Myth: “I don’t need health insurance now…I can risk it until I get a job.”

Reality: Get the health insurance. People with health insurance that develop health issues often do better than people without the insurance. People without health insurance will also run into far more trouble at hospitals and clinics than people who do have health insurance.

Think about it: you might be healthy and might stay that way for a long time. But are you willing to bet money on it?

Myth: “Only young people are without health insurance coverage.”

Reality: You’d be surprised. 3/4ths of people without health insurance are over the age of 25, and the amount of middle-aged people and senior citizens without health insurance is climbing. It’s not just the young and careless among us: even the older citizens of the United States are many times without proper coverage.

Myth: “If the government doesn’t provide health insurance, no one will.”

Reality: Even if you think government has its role in providing health insurance, the private market does provide quality health insurance. The government isn’t necessarily a one-stop-shop for all things medical.

Health insurance companies compete with each other to provide you coverage by providing lower costs, better deductibles, and more comprehensive coverage.

Myth: “Medicare or Medicaid will pick up the tab; I’ll be fine.”

Reality: Perhaps Medicare or Medicaid will help you. Perhaps it won’t. There’s no use in remaining ignorant to the topic. Don’t place your long-term hopes in anything that can be taken away from you.

Instead, keep your eyes open and make sure that you have fallback options for the long term. Save money and be sure to stay covered long into the future.

Myth: “Only the wealthy can afford totally comprehensive health insurance.”

Reality: They can, but if you look into it, so can you. Just ask around. Ask a local insurance provider for total umbrella insurance, and how it can be made the most affordable to you. You’d be surprised at the kinds of answers you might get.

Naturally, the more coverage you get, the more you might be expected to pay. But you don’t know how much more that will be until you find out for yourself, and – of course – you never know how worth it it might end up being.

E-Mealz

Easy way to make meals for your family and you can choose healthy eating options also like Gluten Free!

Small Business Owners In Need Of Affordable Health Insurance–Can Affordable Healthcare Plans Be Found?

Small business health insurance is often seen as too costly for either an employer with numerous workers or for someone running a business who is simply self-employed. Yet, there have been options that have become available as of late and traditional means that have been used by countless businesses as a way to provide health insurance coverage for either themselves or their employees.

For small business owners, traditional employer group health insurance plans are available and are usually felt to be one of the more affordable health insurance options since employers can, in some ways, tailor a plan that can be helpful for their workers and affordable as well. Insurance options may vary from state to state but employer group health insurance plans have been more cost efficient for some business owners because of the coverage options and the fact that risk can be spread out over a large number of workers, which can help lower costs as well.

Yet, there is currently a tax credit in place for small business employers who offer health insurance for their workers, in cases where the workforce is small. Costs for premiums may be lessened under this credit for businesses as this tax incentive is hoped to either cause more employers to consider health insurance plans for their workers or prompt businesses who currently offer their workers health insurance to continue to do so.

However, some business owners, like those who may be self-employed and are only in need of health insurance for themselves, are turning to traditional plans in some cases, but there are those who are simply looking into short-term health insurance plans. Short-term health insurance for self-employed individuals isn’t as inclusive, in terms of coverage, but it has helped those who are self-employed guard themselves against high medical costs in case of a major medical emergency.

Business owners are often advised to shop around when seeking a health insurance plan, as there are obviously some plans which are more affordable than others. However, in spite of worries over premium costs, small business owners may be in a better position by spending the funds for these health insurance plans rather than risk shouldering the burden, or having their employees shoulder the burden, of medical costs when uninsured.

Health Reform Provides Employer Subsidies in 2010

We’re all hearing a lot about health care reform, but much of the information can be confusing. REGIT is providing clients with information we receive that outlines the changes in easy-to-understand language.

At this time, we are primarily focused on the changes that will take place in late September 2010. One significant change occurring then is that employers with less than 25 employees and an average annual wage of less than $50,000 may be eligible for a subsidy for their employees’ health insurance premium.

Please contact me to receive the 3-step test that will tell you whether your business is eligible for the subsidy. We encourage you to do this soon. There is also a great deal of information at www.irs.gov that gives greater details of this subsidy. You may also wish to consult your accountant or legal counsel on this.

REGIT will continue to be a resource to you as health care reform regulations are written. Please feel free to call if we can be of help to you.


Lorraine Allen
(630) 652-1067
lallen@regitinc.com

Timeline of health care reform

IMMEDIATE FIXES: 2010 – as of April 1st still waiting on these changes to be implemented, no exact time yet

- SMALL BUSINESSES: Tax credits start flowing to businesses with fewer than 50 employees, covering 35% of premiums, to help them afford coverage. By 2014, that will rise to 50%.

- SENIORS: They get a $250 rebate to help fill the "doughnut hole" in Medicare drug coverage.

- YOUNG ADULTS: Health insurers are required to let young people stay on their parents' policy up to their 27th birthday.

- PRE-EXISTING CONDITIONS: Insurers will be barred from denying coverage to kids with pre-existing conditions. Adults will have to wait until 2014 for the same protection. But high-risk pools will offer an option for affordable coverage until then.

- NO LIMITS ON COVERAGE: Insurers can't place lifetime caps on benefits any longer.

- PREVENTIVE CARE: New private plans will have to cover checkups and other preventive services with no co-pays. By 2018, all plans must comply.


2011

- HEALTH CARE COMPANIES KICK IN: Drugmakers pony up new fees, starting at $2.7 billion. Insurance and medical-device providers follow in 2013.
2013

- TAXES: Medicare payroll taxes increase - from a rate of 1.45% to 2.35% - for singles earning more than $200,000 a year and families above $250,000.


2014

This is when all Americans will feel the bill's impact - in their wallets, if not elsewhere.

- INDIVIDUAL MANDATE: Almost everyone will be required to get insurance or face a fine - $95 in 2014, $325 in 2015 and $695 in 2016 (with a maximum of $2,250 for a family). There is an exemption for low-income people.

- EMPLOYER MANDATE: Businesses with 50 or more employees must offer insurance or pay a $2,000-per-worker penalty.

- HEALTH CARE EXCHANGES: These new state-based marketplaces should be open for business, giving individuals and small businesses a place to shop for affordable insurance .

- SUBSIDIES: To help pay for insurance, the feds will offer subsidies to families making as much as $88,000 a year. Out-of-pocket spending will be tied to a person's income and kept as low as $1,000.


2018

- TAX ON HIGH-COST HEALTH PLANS: A 40% excise tax will be slapped on high-cost "Cadillac" plans starting in 2018.


2020

- Benefits that began to close Medicare's "doughnut hole" for prescription drugs in 2010 will finally complete the job in 2020.

Health Care Bill Summary and Timeline

You've probably heard by now that the health care reform bill will enable you to find coverage if you're sick and keep your existing coverage if you get sick, or that it will enable you to afford to buy insurance or get it for free. But when? Here's a summary and timeline of when the bill's various benefits and protections - and its costs - will take effect.

Upon the President's signature, your dependent children will be allowed to remain on your insurance policy up to age 26, and your insurer will not be permitted to deny them coverage based on pre-existing conditions. Children covered by Medicaid or state Children's Health Insurance Programs cannot be dropped from this point until 2019, and adults covered by state Medicaid programs cannot be dropped until the state insurance exchanges go into operation in 2014, unless a state needs to do so to close a budget shortfall. Also: a 10 percent excise tax on indoor tanning goes into effect, as does a tax credit of up to 35 percent for small businesses with fewer than 25 employees that offer health insurance.

Three months after the bill becomes law, individuals who have been unable to obtain coverage because of pre-existing conditions for at least six months will be able to purchase it from special high-risk insurance pools. The pools will be folded into the state insurance exchanges when they take effect in 2014.


Six months after the bill becomes law, Medicare recipients who have fallen into the coverage gap ("donut hole") in Medicare Part D prescription drug benefits will receive a $250 rebate, the first of a series of gradual closings of the coverage gap phased in through 2020. New insurance policies sold from this date forward must exclude preventive care and screenings from annual deductibles, and insurers will no longer be able to cancel policies except in cases of fraud or set lifetime coverage caps from this point forward.

In 2011, Medicare Part D recipients who fall into the "donut hole" will receive a 50 percent discount on their prescriptions. A new, voluntary insurance plan providing modest cash assistance for long-term in-home or nursing home care becomes available this year. Also, the first of a 10-year series of cuts in subsidies to Medicare Advantage plans - private insurance plans that pay medical expenses and often offer extra benefits not covered by Medicare -- taxes effect. Seniors enrolled in these plans will likely face hikes in premiums, reductions in benefits, or both. Employers have to start reporting the value of employees' health care benefits on their W-2s, and community health centers would get increased funding to treat low-income and underserved individuals.

In 2012, nonprofit insurance co-ops will be created to compete with for-profit insurers, and physicians, hospitals and payers will be encouraged to band together in "accountable care organizations."

In 2013, the Medicare payroll tax will rise from 1.45 percent to 2.35 percent for individuals making more than $200,000 a year and married couples making more than $250,000 a year, and a new Medicare tax on unearned income of 3.8 percent takes effect. Annual contributions to tax-sheltered flexible spending accounts for medical expenses will be capped at $2,500, indexed for inflation from this point. A 2.3 percent sales tax will apply to medical devices other than vision and hearing aids.

In 2014, most of the bill's most heralded benefits take effect. This is the year when the state insurance exchanges go on-line, with subsidized coverage available in the form of tax credits, and when Medicaid will be expanded to cover individuals making up to 133 percent of the Federal poverty level (currently about $28,300 for a family of four). Insurers will be prohibited from denying coverage to adults with pre-existing conditions and charging higher premiums to individuals with chronic conditions starting this year, and they will also be required to cover maternity care the same as all other medical procedures. 2014 is also the year the mandates kick in: individuals who do not have insurance and cannot prove hardship will pay a $95 fine, rising to $695 by 2016; families without insurance will pay fines of up to $2,250, indexed for inflation after 2016; and employers with more than 50 employees that have any employees enrolled in subsidized coverage through the exchanges will pay a penalty of $2000 times the number of workers employed minus 30.

In 2018, the tax on so-called "Cadillac health plans" takes effect. Employers who provide insurance policies worth more than $10,200 per individual or $27,500 per family will pay a tax of 40 percent of the value of the plan above the thresholds, indexed for inflation.

President Obama will sign the bill at 11:15 a.m. Eastern Time today.

Written by Sandy Smith
For HULIQ.com

Health Premium Subsidy Eligibility Period Extended to March 31

The Senate voted Tuesday, March 2, to extend benefits for involutarily terminated workers. The measure includes an additional 30-day eligibility period of the health benefits premium subsidty for COBRA and state continuation coverage. The extension is retroactive to March 1. As a result of the latest law, most individuals involuntarily terminated from employment between March 1 and March 31 will now be eligible to apply for the 65 percent premium reduction and continuation coverage.

SPECIAL BULLETIN: White House Summit and COBRA Eligibility Period

WHITE HOUSE HEALTH CARE REFORM SUMMIT

On Monday, Feb. 22, President Barack Obama released an 11-page, $950 billion health care reform proposal, ahead of Thursday's highly anticipated bipartisan health care reform summit. While the president's proposal only included a set of policy priorities, not legislative language, its principles are similar to the Senate-passed health care reform legislation.

Congressional and committee leaders from both parties participated in a day-long Health Care Reform Summit, on Thursday, Feb. 25, along with other members designated by their party's leadership. The summit was both cordial, as well as contentious, with Congressional leaders oftentimes arguing over their fundamental differences and beliefs.

President Obama, who moderated the summit, wrapped up the day-long discussion on health care reform by telling Republicans to find common ground with Democrats in the upcoming weeks, or that Democrats will "go ahead and make some decisions," likely meaning that the Democrats will pass the current health care reform legislation through the budget reconciliation process. Many Republicans stated during the summit that they want to scrap the current health care reform bills and start over, taking a more incremental approach.

It remains to be seen how both political parties will proceed in the coming weeks.


EXTENDED SUBSIDY ELIGIBILITY PERIOD EXPIRES SUNDAY UNLESS CONGRESS ACTS AGAIN

The extended two-month eligibility period for the premium subsidy program is set to end this Sunday, Feb. 28, 2010. This means that workers involuntarily terminated starting March 1 will not be eligible to receive the 65 percent premium reduction of COBRA or state continuation benefits.

Many believe there is Congressional support for extending the premium subsidy eligibility period again, and expect consideration of the issue in coming weeks.

Our hope is that any extension will be passed before the eligibility period ends this Sunday, to avoid another retroactive benefits period. As of this morning, the House has passed a voice vote to extend the subsidy by one month. It now goes to the Senate, but isn't expected to pass before week's end.

Would you like additional sales people to help you sell your product or service?

My Glen Ellyn/Wheaton Chapter is looking for more Members!

Since its conception, the Dynamic Professional Women’s Network has positioned itself to be a very functional platform for women to develop the valuable connections necessary to grow in our professional as well as personal lives.

Inspired by the need to connect and partner with other professional women, but unable to commit to other early morning groups, DPWN was created to better meet the needs of working women and offer meeting times that also fit into a working mothers schedule. The objectives of the DPWN are simple, yet powerful. We focus on building great relationships, learning new business practices, sharing other networking opportunities, exchanging marketing ideas, and of course generating business for each other through referrals. We also have monthly Power Networking Events designed to inspire, educate, and motivate. At these events, the members of all of our chapters along with their guests, come together to further enhance their networking opportunities on a larger scale. In addition, we have other events and special discounts available only to members.

Let me know if this is something you may be interested in!

Carriers Represented

Did you know that I am licensed in almost every state in the U.S., not just Illinois? Depending on the state you live in I represent the following carriers:

BlueCross/BlueShield and or Anthem
UniCare
HumanaOne
Aetna
AARP
UnitedHealthOne
Assurant Health
Cigna
Pacificare

I personally consult with you for free, this is a no cost service. I help you find the best plan at the most affordable rates. I do all of your research for you! What could be better than that!?

Give me a try, call me today. (630) 652-1067

AARP Health Insurance for 50+

Did you know that AARP now has a health insurance plan for those 50 and older? I am an Authorized to Sell AARP Agent, ask me about how you can get your personalized quote on their health insurance product featuring first dollar coverage for Routine Physicals including Colonoscopies and Flu Shots!

HR Alert -- Federal and Illinois State Minimum Wage

On July 24, 2009, the current Federal Minimum Wage rate of $6.55 per hour will increase to $7.25 per hour.

As a reminder for Illinois employers, the state’s minimum wage increased to $8.00 an hour starting on July 1, 2009. The state minimum wage will also increase by an additional 25 cents on July 1, 2010.

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So What's Really Driving the Increase in Health Insurance Premiums?

I am sure you are all wondering right?

While many people may believe that insurer profits are the driving force behind increasing health insurance premiums, research reveals very different reasons for the high cost of health insurance.

A May 2009 report titled "What's Really Driving the Increase in Health Care Premiums?" addresses the issue. The report, issued by the WellPoint Institute of Health Care Knowledge, compiles research from sources such as PricewaterhouseCoopers, the Robert Wood Johnson Foundation, the Kaiser Family Foundation, The Bureau of Labor Statistics and the Congressional Budget Office.

According to the report the "key drivers" of spiraling U.S. health care costs are:

• Advances in medical technology and subsequent increases in utilization;
• Price inflation for medical services that exceeds inflation in other sectors of the economy;
• Cost-shifting from people who are uninsured and those receiving Medicare and Medicaid to the private sector;
• High cost of regulatory compliance; and
• Patient lifestyles, such as smoking, physical inactivity and obesity.

Citing PricewaterhouseCoopers research from 2008, the report found that only three cents of every health care premium dollar is spent on health insurer profit.

According to the Institute's report, newer medical technologies tend to increase costs because they are generally more expensive than the older technologies they replace. While the availability of more advanced, superior technologies can yield better results for some patients, these technologies and diagnostic tests may be used inappropriately in some situations where existing, older technologies are more effective and accurate.

A copy of the full report is available by clicking on the link below.

http://www.wellpoint.com/pdf/Premium%20Cost%20Drivers.pdf

IRS Releases 2010 Adjusted HSA Amounts

Eligible individuals with self-only coverage under a high-deductible health plan (HDHP) may contribute an annual maximum of $3,050 to their Health Savings Account (HSA) for 2010. Eligible individuals with family coverage (coverage for two or more individuals) under an HDHP may contribute up to $6,150 to their HSA. Individuals age 55 or older who are not enrolled in Medicare may contribute more to the account per year.

To be considered qualified for an HSA, the HDHP must meet certain IRS regulations. For 2010, to qualify as an HDHP.

• The minimum deductible amount must be $1,200 for self-only coverage and $2,400 for family coverage; increased from 2009 requirements.
• The out-of-pocket maximum must be no higher than $5,950 for individual or $11,900 for family coverage; increased from 2009 requirements.
• The HDHP must be set up with a combined medical/pharmacy deductible. This deductible must apply to the out-of-pocket maximum; no change from 2009 requirements.
• All medical and pharmacy services must be subject to deductible and out-of-pocket maximum except for preventative services.

For more information and to obtain a quote on a Health Savings Account Compatible Plan, please contact me!

Illinois Insurance Update

Effective June 1, 2009, all individual and group health insurance and HMO contracts (including dental and vision) that offer dependent coverage must follow a new Illinois law which gives a person with an insurance policy that covers dependents the right to elect coverage for qualifying dependents (even if they are not full-time students) who are not married up to age 26 or up to age 30 for unmarried military veteran dependents who are Illinois residents. This will take effect for new insurance policies issued on or after June 1, 2009. For example, for a plan with a January 1 open enrollment date, this new law will first take effect beginning January 1, 2010. The new law does not require employers to pay the cost of the dependent coverage or to provide dependent coverage if not previously provided.

An unmarried individual who meets the age requirements above can be eligible for dependent coverage under this new law even if that person cannot be claimed as a dependent on the employee's income tax return. However, if the dependent does not meet the IRS definition of a dependent under IRC Section 152, the employee will need to be taxed on the fair market value of the portion of the insurance premiums related to that individual that are paid by the employer. Employers need to verify at the time of enrollment that tax-free health coverage is appropriate and that only tax free treatment provided to the employee includes spouses and dependents as defined under IRC Section 152. The taxation of the imputed income related to these premiums protects the tax free treatment of the reimbursements received under the plan.

Currently, the IRS has not offered an formal guidance on the calculation of the fair market value, other than the information offered in PLR 200339001 and PLR 9603011 which references the treatment of coverage for Domestic rule would be to follow a reasonable method for calculating the fair market value using an actuarial computation that could be done by your insurance provider or using the greater of the increase in incremental cost of coverage or COBRA premiums for self-only coverage.

If you have questions about this new law and how it will work for your particular situation, we recommend that you contact your carrier directly for clarification on the matter as it pertains to your situation and their policies.

Information was received via Sikich LLP, Certified Public Accountants and Advisors

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What is a Health Savings Account Plan

Health Savings Account is a tax-favored savings account combined with a qualifying high-deductible health insurance plan. By allowing you to deposit tax-deductible funds into a health savings account that you can use to cover medical costs, Health Savings Accounts enable you to take control of your own health care decisions. One of the key aspects to health savings accounts is a system that is responsive primarily to individual consumers, rather than to third-party payers. This concept is know as consumer driven health care.

First, you need to purchase a high-deductible health insurance plan that qualifies and can be partnered with a Health Savings Account. Many carriers offer them now and the plans are all pretty similar with some having the option for deductible waiver for Preventative Care Visits to cover things like mammograms and pap-smears along with other routine testing, and some not. Deductibles that I normally sell are around $2500 for individuals and around $5000 for a family, however, there are many other options lower and higher to choose from.

What's not to like about a Health Savings Account (HSA)? Contributions are deductible, the account accumulates tax-free, and withdrawals used for medical expenses are tax-free. I personally cringe when I see someone paying nearly a $1000 a month to insure their family, yet they are hardly even utilizing the benefits that they are paying so much for. My first suggestion to them always is to look at going with a high deductible health savings account compatible plan and put into their own HSA Account the money they are saving on their premiums. Why give it to the insurance company? Pay a smaller premium to the insurance carrier and with the money you are saving set up the HSA Account and control your own health expenditure's.

Lower your health insurance premiums by 30-50%, yes you can lower it that much! Our typical client saves between $80 - $250 per month when they switch from a traditional health insurance plan to a Health Savings Account plan, some save even more!

Reduce your income taxes up to $1600 to $1800 a year - all Health Savings Account deposits are 100% tax deductible, and can be withdrawn to pay for medical expenses tax-free up to $3000 for a single person and $5950 for a family.

Build a medical retirement account of several thousand dollars - the funds in your HSA are always yours, and grow tax deferred like an IRA. At age 65 the money can be withdrawn penalty free for any reason.

So, have you been thinking that you need to get in control of your health care expenditure's? Are you tired of paying too much for insurance you never seem to utilize, or are you one of those uninsured that think nothing will happen to you and you don't need ANY health care coverage? HSA's are changing the way Americans think about health care, and their money, and giving new options to those uninsured individuals.

If this is something you feel you should investigate, don't hesitate, I give absolutely free consultations and will let you know if this is an option that makes sense for you. I work for you, not the insurance companies, but I get paid by them, you won't pay a penny to me. I am licensed throughout the U.S. in several states and am only a phone call away!

Lorraine Allen
REGIT, Inc.
1200 Roosevelt Rd.
Suite 115
Glen Ellyn, IL 60137
Toll Free (800) 537-9786 x1067
Direct (630) 652-1067
Fax (630) 495-1881
E-mail - lallen@regitinc.com
LinkedIn - www.linkedin.com/in/lorraineallen