News
Changing California Healthcare Market Warrants Insurance Review Urges David Lindsey Agency
The Flip Side of Higher Healthcare Costs-Lower Life Insurance Premiums
Frequently Asked Questions
About Insurance
Q- Is
there any good news in regards to rising health insurance
costs?
A- Yes,
due to the fact people are living longer and often having life
saving/extending procedures, the costs for very necessary Life
Insurance have dropped for the last decade. If you have
not reviewed your policy since you bought it, we encourage
you to seek market comparisons to see how you may be able to
improve what your premium investments are doing for you!
Q-Can
I save money on my Health Insurance premiums by going direct?
A- No. State
laws mandate that you pay the same whether you go direct to
a carrier, apply online through some mass quote site, or seek
the advice and counsel of an insurance professional who really
is looking out for you and your family or business. At DLA,
we are looking to earn and service your business for life.
Q- Why
should you do business with us versus another agent?
A-Ultimately,
that is your decision. At DLA, we try to provide you with online
tools, advice and education for making sound and proper decisions
for you and your business. We return your calls promptly, and
are always seeking ways to maximize your monthly investment
into peace of mind and asset protection…which is what
insurance really is. To us you are not another number, but
a person whose best interests we take to heart and value as
family.
Q- What
do you mean “manage my premium investment”?
A- Well,
simply put, a decision to have Health or Life Insurance is
to give you peace of mind and protect your assets should something
unforeseen happen. You invest premiums to do this. We want
your business for a lifetime. So, it is our responsibility
to work with you as the market changes and new plans are launched,
as your life changes (spouse, family, business success, divorce,
death), we should be working together to make sure your investment
is in the best possible plan for the current situation for
you. For example,
a young couple in their late 20’s may like the limited
out of pocket cost for an HMO for their two children, but by
30 or 35, the monthly premium versus benefits they are using
will be burdensome. A switch to a lower cost PPO would save
them money and set them up with greater flexibility and access
to specialists should something happen to any family member.
Q- What
kinds of changes are going on in the market right now?
A- Plans
for all the major carriers in California are changing. Some
companies are limiting your exposure to high co-insurance should
something happen (a very good thing in our opinion). Some are
adding “Health Incentive Programs”, rewarding good
health and changes towards better health. Consumer driven health
plans empowering the insured with more knowledge and responsibility
for their Health Care and cost are making way to the
market. Health Savings Accounts are popular for reducing costs,
but if not counseled properly by your agent, can be a recipe
for problems come claims time. Bottom-line, carriers are trying
to meet the demands that the consumer has been putting on them.
We will see more transparency of cost of care coming.
About Health Savings Accounts
Q- What
is a Health Savings Account (HSA)?
A- A HSA
is very similar to an Individual Retirement Account (IRA).
Both grow the money deposited Tax-Deferred until 65. The difference
being the money deposited into your HSA can be used to pay
your Medical Expenses as they are incurred that are not paid
for by your Health Insurance.
Q-Who
qualifies?
A- Anyone
that is covered by a “qualified High Deductible Health
Plan” (HDHP) can qualify to open and contribute to a
HSA.
Q- What
are the benefits of opening and contributing to a HSA?
A-Qualified
medical expenses are generally defined as costs associated
with the diagnosis, cure, treatment and/or prevention of an
illness or injury. This would include doctor office visits,
medication (both OTC and prescriptions), dental expenses (including
Orthodontia) and vision expenses. You can even use the funds
to pay Long Term Care Insurance premiums. Typically, funds
cannot be used for cosmetic surgery, however they can be used
to pay for laser eye surgery.
Q- What
happens if I don’t use all of the money contributed
to the HSA?
A- Any remaining
balance rolls over and accumulates to be available for medical
expenses from year to year. If funds still remain at age 65
they can be taken as penalty-free retirement income withdrawals.
Q- How
do I open a HSA and start contributions?
A- www.firsthorizonmsaver.com, www.gilmorebankhsa.com, www.wellsfargo.com , www.sterlinghsa.com
All of these
offer online applications for HSAs. Email or call us for more
information.
Q- What
are the current contribution levels?
A- New regulations
(new freedoms!!) have been enacted for 2010.Contribution limits for 2010 are $6150 for a family and $3150 for an individual. You may contribute a full year's amount in 2010 even though you have the plan for a part of the year. Of
note: Annual contributions are not required; you are in control.
Q- How does this work with Health Insurance
A- A qualified HSA Health Plan is a High Deductible Health
Plan that has some Wellness benefit immediately, then covers
the big stuff, above your chosen deductible (or on some plans
maximum out of pocket limit) at 100%. This varies plan to plan,
so call to get the best advice. On one of these plans, you
are responsible for the small stuff…i.e. Doctor Visits,
X-Rays, Labs, ER visits (to the deductible) but you get to
use Pre-tax dollars from your HSA Account to pay for these
expenses. If you are the type that doesn’t go to the
doctor, this kind of plan may be right for you. We do not recommend
these for young families, but with proper understanding, these
can be very powerful for the right person.
Q- Where can I get more information?
A- www.ustreas.gov/offices/public-affairs/hsa
A- www.hsabank.com/hsainfo
A- www.sterlinghsa.com
|
