Can a person do ANYTHING to protect themselves from huge health insurance premium increases? Well, the best thing a person could do is control the cost of medicine. But since you and I cannot do this, and apparently the ones in charge of things cannot figure out that this is the fundamental problem, what can you and I do to protect ourselves?

As many of you know, I am a big believer in Health Savings Accounts paired with a High Deductible Health Plan. If a person does a cost analysis of what the cost of heatlh care is and compares having a plan like this with a typical PPO or HMO plan, in all but the rarest of examples they will come out ahead … and in most cases … way ahead.

But you’d think that having high deductible health plan (which generally means no utilization except in catatrophic situations) would mean that a person would not be getting rate increases. Sadly, that is not the case.

Here is how it works: if you are a health insurance company and you think that you are going to have some major costs shifted from the government to you [the big bad insurance company] you are going to act to protect yourself.

Since rate increases have to be approved, its prudent to plan ahead. What are the chances that a company is going to get a 200% increase approved? What are the chances that you, the consumer, would keep the policy even if it was approved? Zero, Zilch on both counts.

But what if they raised the premium 21% this year, and 17% next year, and 23% the following year, etc.? What then?

Might this be approved? Yes.

Might you keep it? Yes.

Lets create an example: You have a plan for your family with a $10,000 or higher deductible and no drug benefits. Would that qualify as “high deductible” to you? (I usually mean less than $5,000 when I use that term). Now imagine for a moment that you are paying about $252.00 per month for this $10,000 deductible plan with no drugs benefit.  And the company raises your premium on this plan that you’ve never utilized by 21%. How much is that?

Try $635 per year!

But what if you had a “normal” PPO plan and you were paying about $1,000 per month and the company raised your premium 21%.

That’s an increase of about $2,500 dollars. How does $635 dollars sound in comparison?

These examples I am giving are based on real scenarios. [I rounded some numbers but the basic facts are as illustrated].

So whereas I can not solve the problem for the country as a whole - I can help you – as an individual/family find reasonable solutions to the dilemmas created by politicians.

Call me or email me for more information. I can be reached at 209-498-3010 or 209-390-1163.

I am looking forward to talking to you.

Michael Myers

Health Insurance costs continue to rise. The recent national debate on health insurance was ostensibly to lower costs. Many in the industry spoke loud that the proposals being put forward would raise premiums faster than ever before.

Even though the full impact of this is not yet felt, underlying pressure on costs has begun in earnest. One major insurer is sending out notices that include information like this:

Despite our efforts, the cost of care continues to increase dramatically. Factors fueling costs include:

1. Increased use of new medical technologies.
2. Higher prescription drug costs.
3. Pressure on health insurance plans and the private sector to absorb higher costs as funding for public programs like Medicare and Medicaid decreases.

The average increase is a whopping 17.6 percent for PPO insurance plans! The increase applies to both open and closed insurance plans. Insureds of all ages and across all regions and tiers will see an increase unless they are currently in a rate guarantee period.

What can you do about this? Well, neither you or I can change the decisions being made as individuals. However, as individuals – we can change what we pay for.

I have for a long time advocated Health Insurance Savings qualified health plans. I feel stronger than ever that this is a good choice for the majority of persons. I believe that putting a plan like this in place is the best way to cushion future rate increases. I can help you do this.

Recently I have found another good idea. This one works whether you are self-employed or an employee. It works wherever there is a high deductible medical plan. You can protect yourself, and your whole family against many risks by getting your own accident and/or critical (cancer, heart, etc) illness plan. These plans pay with either no deductible or a very small deductible. Either way they will help cushion you against health insurance plans with increasingly high deductibles.

With recent rate hikes on individual and group insurance plans, many experts are recommending that consumers shop around as many commonly do with auto insurance. For instance, California Insurance Commissioner Steve Poizner, in a recent statement said,

“As a consumer you need to shop around. A different provider may prove to be a better value for a particular individual or family’s needs, and all of them are looking for new customers. I encourage consumers who are not happy with their rates, co-pays, benefits or service to look at other options.”, says Poizner.

Honest, consumer based evaluation of health plans and carriers are really the need of the hour. We think that this is the role that the insurance intermediary should volunteer to take up. In fact, this is exactly what we have been doing for some time now.

Most people find insurance confusing. I am here to help. My only preference in insurers is the one that will fill your need and circumstances best. This is why I offer the selection of companies I offer.

Whether the need is group insurance, individual/family plans or Senior health plans (Medigap), I save people money with my “Solutions That Work”.

So if you do not have insurance and need it, or if you have it and think it’s too high, call me. I can help.

Call me at 209-390-1163 or 866-301-9652.

Michael Myers

I’ll tell you the complete unvarnished truth.

Take for instance all the talk about bad insurance companies. Now, there is no doubt that there are some bad apples out there. But is the talk you hear in the news really honest and truthful?

For instance …

So whereas I cannot do anything about all the rhetoric (I wouldn’t even try), I can help you by telling you the truth. I give my clients good advice, based on their circumstances. And I’ve been doing it for 30 years.

Call me at 209-390-1163 if I can answer any questions for you. I’m here to help.

Michael Myers

Health insurance has always been something that I have advocated people talk to me about before applying.

Why?

For two simple but very important reasons;

1. People have different expectations when they purchase health insurance, and
2. Health insurance companies only give you the reasons to buy their product. They rarely discuss the thinking that goes into selecting a plan. They will give you all the legally required language (which no one reads), and they will stress the benefits, but they do not discuss things like, underwriting or how this particular health insurance plan fits into your particular goals, or how it fits into your budget (or doesn’t fit into your budget).

That is where I come in. I help a person think about those things – I provide the facts that a person needs to make a decision, before they get to the point of actually selecting a health insurance plan.

So why the heading: “Six Reasons to Apply Online” if I am telling you that you should talk to me first?

Because it’s irrelevant what I think. It’s what you think that matters. And the truth is, many people just want to do it that way.

So that is my first reason: it’s what you want to do. So in order, here are my “Six Reasons to Apply Online”:

1. It’s what many people want to do.
2. It saves time.
3. You may do it in the privacy of your home, office, or the local Wi-Fi equipped coffee house.
4. You can do it at midnight, if that is when you have time to do it.
5. Privacy.
6. It’s what you want to do.

Okay, the sixth reason is a repeat, but twice for emphasis, right? Really it comes down to the one reason. You don’t want to meet with someone, as this makes you feel obligated, and you want to just do it yourself.

I understand. And that is fine.

But remember my reasons that you should meet with me first? I’d like you to consider those reasons as being of benefit to you. And so the rest of what I write will deal with those specific things, and hopefully, what I write will benefit you. (But I am always here to help you, either on the phone or in person, should you find you need to know more).

So which of these scenarios fits your thinking best?

Scenario One: I think I’m in pretty good health. I don’t need health insurance for small stuff, but I do worry about something major happening.  California Residents Click Here

Scenario Two: I am in pretty good health, but it really hurts to have to come up with $1,500 for a doctor visit and a few lab tests! I want something that I know what it’s going to cost me if I go to the doctor just like what I use to have when I worked for XYZ Widget Company. California Residents Click Here

Scenario Three: I have some health issues and I don’t know if they will accept me. I know I can’t expect to get the same quality of health insurance I had when I worked for XYZ Widget Company, but I need to have something that will pay toward my costs if I have to go to the doctor or worse, the hospital. California, Kansas and Nevada Residents Click Here

And if you have health insurance, but would like to save money on Dental Expenses, Click Here

And of course, if you cannot find what you are looking for, or have questions, or just need some help sorting it all out, call me. I’m here to help.

You Need a Budget

Keep reading. I promise you this makes sense and there are health insurance options for you out there.

We all need to budget.

Why?

It makes sense for YOU to be the one who decides how to spend your hard-earned dollars.

Quite likely, most have been in that situation where we feel like we’re just putting out “fires.” As soon as we have one doused we turn around and there’s something else that needs immediate attention because it’s about to burn the place down so now all of your resources are aimed at putting that “fire” out.

That’s letting the figurative financial “fires” determine how you spend your money. It’s exhausting. And consumes too much energy and resources – and all too often the important stuff gets postponed. Like health care.

Now, it’s a given – health insurance is not “cheap”. Health care is expensive too. The government continues to come up with new and innovative Band-Aids for the whole health care system.   Time will tell what will come of all of that.

Meanwhile there’s really too much at stake to postpone taking charge of YOUR health care.

One of the most affordable options can be a high-deductible, HSA-qualified health insurance plan.

What??

Why bother with an insurance plan with a really high deductible? You’ll be buying insurance AND STILL having to pay for the doctor, right?

This is what I want you to do. I want you to reframe that thought. Do you have a home? Do you make payments on your home? Do you pay the taxes on your home?

Why do you do that? Likely because you like your home and you want to keep it. You are protecting your investment – because if you don’t pay those things, you could lose it. Think of a high-deductible insurance plan as yet another way to protect your investment. If you get sick and have a major expense (and it does not take much to qualify as “major”), health insurance will keep that particular “fire” from consuming your most valued asset.

So…how do you AFFORD health insurance on top of everything else in this miserable economy?

Careful planning and choosing the right insurance policy can make health insurance affordable. You may be surprised to find that there are health insurance options that will fit your budget and and give you the peace of mind you need as one more way to protect your assets.

One option – an H.S.A.

What is an H.S.A.?

It stands for Health Savings Account. It is provided for in our tax code to allow a person to have a high deductible health insurance plan, and also contribute tax-deductible money to a Health Savings Account (at a bank). Money going into the account is tax deductible. Any money coming out of that account – when spent on health care (i.e. paying the doc from this account) is not taxable.

Another benefit to funding your H.S.A. – if you are in the 28% tax bracket, and you do fund the account and you do pay medical expenses from this account, it is as if you are paying the doctor, dentist, optometrist, chiropractor – whomever your helath care professional may be – with 72 cent dollars. I’ll bet you like the sound of that! Your health care is CHEAPER!!!!

But what if….

What if I cant do it? What if I can’t get my H.S.A. funded with enough $ in it to cover my deductible? Now what good would it be to have purchased this high-deductible insurance policy?

OK…let’s just come up with a hypothetical situation here. I’m not suggesting or recommending you do this – but let’s talk about this particular “what if?”

You’re self-employed.  You end up injured on your job, or that funny pain in your gut turns out to be a bad gallbladder/appendix – whatever. You land in the hospital. You have insurance, so at least they TOOK YOU as a patient right? But oh no…the deductible is terribly high.  You know you don’t qualify for any of the charity programs because you own your house and your business etc.  This sure does look like the straw that will break the camel’s back. Oh worry. Why didn’t I at least save for that blasted deductible?  Or… Why didn’t I just bite the bullet and pay for a more expensive policy? How fast can I get out of this place?! Worry. Worry. Worry.

You leave the health care facility with a payment plan – which you now add to your budget. Each month you’ve agreed to pay the health care facility $100 – or whatever. Why don’t you just put that $100 in your H.S.A. and pay them out of THAT account? $100 in (tax-deduction for you) – $100 out – paying back the debt to the hospital – no penalties for withdrawal from H.S.A. because it’s for a medical expense you incurred after establishing your H.S.A. – if you’re in that 28% tax bracket – you’re paying them back with a .72 dollar.  It’s not the best way to plan for the future – but it’s still better than NOTHING.

Did you know?

When you turn age 65 – ANY money that has not been used and is still in your H.S.A. can now be converted to an I.R.A. and used for retirement purposes.  Again:  No penalties or taxes?

I can help you with this.

Call me or e-mail me and let me explain what’s available. You might just be surprised that it actually will fit into the budget.

Check it out.

• Budget Software – I use it but I’m not affiliated with YNAB. They make budgeting EASY and maybe a little fun.
• Contact Michael about Insurance and HSA options.

For years, those of us in the insurance business who sought to put our clients first called ourselves “Brokers”. Now the term Broker is really a misnomer, for we are in fact – from a legal standpoint Agents.

With that thought in mind – call me an Agent of Change. Changes are coming, there is no stopping them. My job is to guide and advise you in how these things impact you.

Whether it be in the medical insurance field (under or over 65), employee benefits (or outsourcing employees), planning for long term care, or using old products such as life insurance in new and better ways – to “bank on yourselves” (you have to see this illustrated to understand how different and better this concept is over the old ways of doing things) – call me. I am here to help you. I am an Agent of Change.

Michael Myers

I am not political. But I couldn’t help but laugh at a story the Associated Press ran on August 27th.  The article was about the health care reform efforts and comments made by Congressman Pete Stark (he heads the health subcommittee on the tax-writing Ways and Means Committee) regarding members of his own political party. The Associated Press reported that Congressman Stark said that the so-called Blue Dog Democrats are “brain dead”, they just “want to cause trouble” and they are just out for insurance company campaign donations.

The reason I laughed about it is that last year, it was Congressman Stark who at the 23rd hour objected to the regulations put out by the government on Medicare Advantage products. We agents, after spending hours and hours in education regarding a program that runs from November 15th to December 31st had the regulations pulled on November 14th due to a letter Congressman Stark wrote. (And if I remember correctly, the revised “final regulations” did not come out until sometime the following February).

This is just another reason why there will be no health care bill – at least one that does ANYTHING to control out of control spending passed. And it will not be due to people who have honest objections to portions of the bill, but rather due to the fact that ones who are running things feel as Congressman Stark expressed – you are brain dead if you don’t agree with them. But the proof is in the pudding, as they say. If you advocate something, you should be able to point to something similar that has worked as intended. If you are unable to get simple regulations in final form by the deadline you set, a “brain active” person may have legitimate concerns about your position on other things.

There is no doubt that health care costs are a problem. Its a problem for all of us. Unfortunately, nothing in the current bill or anything else that has been done in my 30 years in this business seriously approaches things from the angle of controlling costs (other than rationing care).  And if the only way you can save money is DON’T PAY FOR IT, how is that an improvement over anything?

Are you having problems finding “solutions that work” for you in the area of health insurance? Don’t just think nothing can be done. If you live in California or Nevada, call me and let me help you in this area. I can do nothing about the law or what is going on in Washington, but I can offer you my experience in making decisions now with what there is to choose from. I’ve been providing “solutions that work” for nearly 30 years. I can be reached at 209-390-1163.

The Washington Post reports on an effort to get Health Care reform through the reconcilliation process. Whether you and I would consider this positive or negative cannot be determined as yet (well unless one considers the process being used to get it though as an indication). It seems likely that this, if handled this way, will impact the Medicare Program. I will report more on this as the story unfolds. This could be interesting.

In many states, Blue Cross and Blue Shield seems to be the same company. In California, Blue Shield and Blue Cross are not the same company. Why?

Neither Blue Cross nor Blue Shield are “Insurance Companies”, but insurance companies license to do business under those names. Blue Cross Blue Shield Association may license one insurance company under the Blue Cross name and another insurance company under the Blue Shield name. In many states, the same insurance company secures the licensing right to use both marketing names, but in California, this is not the case.

Until recently, Blue Cross in California was known as Blue Cross of California. Recently, their parent (WellPoint) changed their name to Anthem Blue Cross – to more closely match the Anthem Blue Cross Blue Shield name they use in some neighboring states.

However, Blue Shield of California is a different company not owned by WellPoint.

Which company is better?

It all depends on what type of plan you wish to have, and your age and gender.  One company will be better for one, while the other is better for another.  Blue Shield of California has a high rating from the independent insurance-rating service “A.M. Best“.

If you are young, you may like the Tonik plans from Blue Cross.  They are pretty straight-forward plans, and simple to apply for.

I still strongly recommend – to my clients who will make best use of them – an H.S.A. (Health Savings Account) Qualified Plan. And I have several companies, including Blue Shield and Blue Cross who write these plans. I also offer the Farm Bureau Plans from Health Net. Sometimes … they prove to be the best.

I offer links to all these sites here, or if you prefer – email or give me a call, I’ll be happy to send back a report comparing them for you.