5 Things To Consider When Taking Out Health Insurance Plans In A Poor Economy
If you are looking to buy health insurance in today's poor economic climate then here are 5 five things that you must watch out for.
1. Will your health plan cover you both at work and away from your job?
Many health insurance plans have specific exclusions which eliminate your benefits for anything that could have been covered by Workers Compensation or similar laws. Now take a minute to read that last sentence again and pay particular attention to the phrase 'could have been covered'. That is correct, the majority of self employed individuals and even some small business owners do not carry Workers Compensation on themselves.
There are specific insurance policies which will cover you on and off the job, if the law doesn not require you to have Workers Compensation coverage.
2. Are you writing off your health insurance premiums?
Independent contractors (1099's), home based business owners, professionals and a lot of self employed individuals are not taking advantage of the tax laws available to them.
A lot of people who are paying all of their own costs are entitled to deduct their monthly insurance payments. This by itself can lower your net out-of-pocket costs by as much as 40%. Ask your accountant whether you are eligible or check out the IRS website to get more information.
3. Look closely at any policy's internal limits
All health insurance plans use some sort of internal controls which are used to determine how much they will pay out for a particular procedure or service. There are two basic methods which are used:
A. Scheduled Benefits
A lot of policies, some of which are specifically marketed to self employed and independent people, have a detailed schedule of how much the insurer will pay per visit to the doctor, hospital stay or even what limits are placed on payments for testing within a 24 hour period. This structure is generally associated with 'Indemnity plans'. If you are offered one of these policies be sure to see the schedule of benefits in writing. It is very important that you understand these type of limits up front because once they have been reached the insurer will not pay anything above the stated amount.
B. Usual and Customary Expenses
'Usual and Customary' refers to the rate of pay out for a doctor office visit, hospital stay or procedure that is based upon what most physicians and facilities charge for that particular service in that geographical or comparable area. 'Usual and Customary' charges also represnt the maximum level of coverage on most major medical plans.
4. Don't forget that you are able to shop around
If you are reading this you are probably shopping for a health policy.
Every day people shop for everything from food to a new home and while shopping value, price, personal needs and general market conditions get evaluated by the buyer. Bearing this in mind, it is very disconcerting that the majority of people never ask what a test, procedure or even doctor visit cost. In today's ever changing health insurance market it is going to become increasingly important for for people to ask these questions. Asking about price will help you to get the most from your policy and reduce your out-of-pocket expenses.
5. Pay attention to networks and discounts
Nearly all insurers work with medical networks to obtain discounted rates. In broad strokes, networks are composed of of medical professionals and facilities who agree to bill at discounted rates for services rendered. In most cases the network itself is one of the defining properties of your program. Discounts can vary from 10% to 60% or more.
Medical network discounts do vary but to make sure that you minimize your out-of-pocket expenses, it is imperative that you preview the network's list of physicians and facilities before you commit yourself to a policy. This is not only to make sure that your local doctors and hospitals are included in the network, but also so that you can see what your options would be if you were to need a specialist. - 23211
1. Will your health plan cover you both at work and away from your job?
Many health insurance plans have specific exclusions which eliminate your benefits for anything that could have been covered by Workers Compensation or similar laws. Now take a minute to read that last sentence again and pay particular attention to the phrase 'could have been covered'. That is correct, the majority of self employed individuals and even some small business owners do not carry Workers Compensation on themselves.
There are specific insurance policies which will cover you on and off the job, if the law doesn not require you to have Workers Compensation coverage.
2. Are you writing off your health insurance premiums?
Independent contractors (1099's), home based business owners, professionals and a lot of self employed individuals are not taking advantage of the tax laws available to them.
A lot of people who are paying all of their own costs are entitled to deduct their monthly insurance payments. This by itself can lower your net out-of-pocket costs by as much as 40%. Ask your accountant whether you are eligible or check out the IRS website to get more information.
3. Look closely at any policy's internal limits
All health insurance plans use some sort of internal controls which are used to determine how much they will pay out for a particular procedure or service. There are two basic methods which are used:
A. Scheduled Benefits
A lot of policies, some of which are specifically marketed to self employed and independent people, have a detailed schedule of how much the insurer will pay per visit to the doctor, hospital stay or even what limits are placed on payments for testing within a 24 hour period. This structure is generally associated with 'Indemnity plans'. If you are offered one of these policies be sure to see the schedule of benefits in writing. It is very important that you understand these type of limits up front because once they have been reached the insurer will not pay anything above the stated amount.
B. Usual and Customary Expenses
'Usual and Customary' refers to the rate of pay out for a doctor office visit, hospital stay or procedure that is based upon what most physicians and facilities charge for that particular service in that geographical or comparable area. 'Usual and Customary' charges also represnt the maximum level of coverage on most major medical plans.
4. Don't forget that you are able to shop around
If you are reading this you are probably shopping for a health policy.
Every day people shop for everything from food to a new home and while shopping value, price, personal needs and general market conditions get evaluated by the buyer. Bearing this in mind, it is very disconcerting that the majority of people never ask what a test, procedure or even doctor visit cost. In today's ever changing health insurance market it is going to become increasingly important for for people to ask these questions. Asking about price will help you to get the most from your policy and reduce your out-of-pocket expenses.
5. Pay attention to networks and discounts
Nearly all insurers work with medical networks to obtain discounted rates. In broad strokes, networks are composed of of medical professionals and facilities who agree to bill at discounted rates for services rendered. In most cases the network itself is one of the defining properties of your program. Discounts can vary from 10% to 60% or more.
Medical network discounts do vary but to make sure that you minimize your out-of-pocket expenses, it is imperative that you preview the network's list of physicians and facilities before you commit yourself to a policy. This is not only to make sure that your local doctors and hospitals are included in the network, but also so that you can see what your options would be if you were to need a specialist. - 23211
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posted by X - Men @ 4:09 AM
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