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.

Problem:
I’m a self-employed medical transcriptionist.  I have had conventional health insurance but it has gotten so expensive, and many of my health care providers have stopped taking insurance (they will help me submit my bills, but they no longer are “in-the-network”).  It’s getting so that I can’t afford to go to the doctor even though I have insurance, because I don’t always have that much cash available for the initial visit.  I’m paying “through the nose” for medical insurance, and I can’t afford to use it!  Is there another option?

Solution:
For many people who are in this or a similar situation, an “H.S.A. qualified health plan” might just be the solution they’re looking for…and the benefits of this type plan are actually more than just the obvious ones.

What is an H.S.A.?
H.S.A. stands for “Health Savings Account.” It is provided for under provisions of the IRS code to allow a person to have a IRA type savings account that is used for medical expenses. Money deposited according to the rules becomes tax-deductible in the year money is put in – but is not deemed taxable-income when used. It is like earning tax-free money! It may only be used for health related expenses, with few exceptions.

To open an H.S.A. account at a financial institution, you must have a health insurance plan that is “H.S.A qualified”. These health insurance plans have high deductibles (but some pay 100% after “deductible”).

These plans work very well when utilized properly.  The key here is to fund the H.S.A.

It is most desirable to regularly put money into your H.S.A. according to the allowed schedule, but even when a person does not do this, as long as they put money in this account before using it to cover a medical expense, they will benefit. (At the very least they will save the amount of tax they would have paid on that amount of income.)

So, for our self-employed medical transcriptionist friend – by setting aside a certain amount of his/her monthly income to fund an H.S.A. while paying LESS for the higher deductible health insurance plan – they have the cash needed for their doctor visits, an income tax break (because of having less “income” to declare at the end of the year), and if they stay healthy and don’t need to use their H.S.A. extensively – they’re saving for retirement!

If they should end up with a major medical event, providing their H.S.A. is funded to the amount of their deductible, their medical expenses are covered by combining this savings account with their health insurance plan.

Q&A

Q. Do I have to be healthy to qualify for one of these plans?
A. Well, yes and no. The actual H.S.A. account does not care if you are healthy or not. But a person would have to pass medical underwriting to get the H.S.A. qualified insurance plan. Different companies have different underwriting requirements. I can help you know what your choices are based on your health history.

Q. What if I smoke?
A. It will likely cost you more for the health insurance. (Didn’t your mother tell you smoking is a health risk?) Seriously, smoking does increase medical costs – as a rule – and will impact the cost of health insurance. The good news is, if you quit and provide evidence of this, you will likely be able to qualify for a lower rate (time limits apply).

Q. I don’t go to the doctor. How is this going benefit me?
A. Do you go to the dentist? How about the eye doctor? Or the Chiropractor? Although the medical plan may or may not cover these things, your H.S.A account may be used to cover these legitimate medical expenses. So, the money you spend on these things becomes tax deductible, and you have the money when you need it. Of course, one never knows when a major medical event may occur, even when one has been extremely healthy and “does not go to the doctor”.

Q. Who benefits the most from this type of plan?
A. Most people will benefit. Some benefit more than others because of the tax benefits, but, as I’ve stated, almost everyone benefits – even someone nearing retirement.

Q. Does it have to have such a large deductible?
A. No. There are many choices. But keep in mind, H.S.A. accounts benefit you for more than just health costs.  They are a tax-exempt savings account that you hold in readiness for healthcare costs.  And, by having this H.S.A. you are now able to buy a less expensive health insurance plan – the higher the deductible on the insurance, the less you will pay for it.

Q. Are there any other benefits?
A. Yes!  Remember when I said you had to use the money that you deposited into the account for health related expenses? Well keep in mind that what is “health related” has nothing to do with what your insurance plan will pay for.

• Your H.S.A. money can be used to pay other expenses that are health-related. Dental, Vision … many things.
• Your H.S.A. money can also earn tax-free interest when you don’t use it.
• And, when you reach retirement age:  Your H.S.A. money can be rolled into an IRA and used for retirement income!

This is just a general explanation of the benefits of an H.S.A. and H.S.A. qualified health plans.  I would be happy to answer further questions, as well as explain how it can fit your individual situation, both from a tax viewpoint and as well as choices in specific health insurance plans that will best serve you.