October, 2009 | Employee Health Benefits and Insurance Blog

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Coverageforall.org - Free State-by-State Health Insurance Assistance

 
state by state health guide

The Foundation for Health Coverage Education (FHCE) provides several excellent resources for Health Insurance on the coverageforall.org website.

Self-Insure with a dedicated savings account

 
self health insuranceA few weeks ago, fivecentnickel.com had a post explaining how consumers can use dedicated savings account to create their own extended warranty for electronics and other large purchases.  The basic point of the post is that companies make money off of warranties, which means consumers lose money.  Instead of buying the $100 warranty for your new tv, put that money in a dedicated savings account.  If you do this with all your purchases, when one breaks, you'll easily have enough money saved up to cover it.  This way you can pocket the profit that electronics stores make off the warranties.

This exact same principal can be used with insurance.  If you're trying to decide between a high or low deductible plan, why not get the best of both worlds?  Let's say the high deductible plan is $100/month and the low deductible is $250/month.  You can go with the high deductible option, but act like you're paying the $250/month premium.  But instead of giving that extra $150 to the insurance company, put that money in a special savings account (or better yet, an HSA).

At the end of the first year, you'll have $1,800 saved in that account.  That's almost certainly enough money to cover whatever expenses you incurred above the lower deductible.  This is what we mean when we talk about "Self-insuring".  By saving the difference in deductible, you're giving yourself a nice financial buffer so the added risk of the higher deductible isn't actually a threat to you.

The best part is, once you save up enough extra money to cover the entire deductible, you can start keeping all the additional savings.  In the example I gave, that means that you'd be saving $150/month and you wouldn't be accepting any more risk than you would with the low deductible (once you have saved enough).






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Employers Expect Higher Costs with Healthcare Reform

 
employers anticipate higher health costsWatson Wyatt recently released a poll showing that the vast majority of employers expect health care reform to increase costs. The poll of 160 employers indicates that 73 percent of U.S. employers expect healthcare reform (if passed) to increase costs.  The poll also found that 86 percent of employers believe current health care proposals would weaken the role employer-sponsored plans play in providing health care coverage.

Additional notes:
    • 10% of the employers supported an employer mandate
    • 50% of the employers supported an individual mandate
    • 29% would support a tax on high-income individuals
Source: Watson Wyatt 




Get Health Insurance Companies to Listen to you on Twitter

 
health insurance twitter
I'm sorry to jump on the Twitter bandwagon, but I've been thinking about corporate social networking profiles recently, and I see a huge opportunity to fix one of the major complaints with the health insurance industry.
First, a disclaimer: I'm a 24 year old programmer.  I'm supposed to understand Twitter.  For the most part, I don't.  I'm just as confused by it as you probably are because I don't get why anyone cares about all those inane little thoughts that make up 99% of the "tweets".  That said, there are a few uses that could be real game-changers.  I'm suggesting that you use Twitter for the real uses, but not necessarily to let the world know what you had for lunch.

A lot of companies are getting into social networking by creating corporate Twitter and Facebook accounts.  A lot of these are just marketing tools, but a few companies handle some customer support through Twitter.  Comcast in particular is a company with a terrible customer service track record, but for some reason I hear nothing but good things about the service people receive when they send requests to Comcast via Twitter.

Why would the company be more responsive through social networks than over the phone?  The simple answer is that the entire world can see what happens on Twitter.  If a customer has a problem and it isn't resolved quickly, millions of people could know about it almost immediately.  Companies can't afford anything other than great service when they know that there's absolute transparency.  If you call Comcast on the phone, the worst that can happen is that they lose you as a customer.

Now let's apply this to health insurance.  Everyone has heard the horror stories about people with good insurance being denied coverage because the insurance companies have to watch their profit margins.  And the common complain goes something like this: "They're a huge corporation and I'm just one person.  They don't have to listen to me"

It's true that it's hard to get them to listen, but it might be a little easier if you aired your issues in front of the entire online world.  If you as a question to a company on Twitter, they can't sweep you under the rug quite as easily because a public record of the entire conversation will be made public.

This is a completely unproven theory on my part.  It's possible that insurance companies will continue doing exactly what they're doing now, but the next time you have a dispute with your carrier and you can't get them to listen, try taking it online.  Something tells me the company will take the issue a little more seriously.

There are way too many insurance carriers to post links to all of there Twitter accounts, but here is United Healthcare and a few Blue Cross Blue Shields in different states.  You can generally find your carrier's account by Googling "Twitter COMPANY_NAME". To ask them a question on Twitter, just type "@" followed by their username (i.e. "@uhcfeds") and then type your message.  Assuming they have someone monitoring their twitter account, they should see the message and respond.
 









What Does U.S. Healthcare Reform Currently Look Like

 
health care reform currentlyToday no one can tell what final U.S. healthcare reform might entail.  But now that we have a bill being discussed in the Senate, and a companion bill in the House, we can see a consensus emerging on a few key issues:

1. Personal vs Employer Health Insurance - People should be able to keep their health insurance coverage independent of their employment

2. Guaranteed-issue personal health insurance policies - Carriers will not be allowed to deny coverage based on preexisting conditions, but may be allowed to charge more for age, preexisting conditions, and other factors. This will replace most state-guaranteed (risk pool) coverage and remove the major objection for employers switching from group to personal plans.

3. Employer Pre-Tax Payment and Reimbursement of Premiums - Employers will remain the "payer" of most health insurance premiums either through direct payment to carriers or reimbursement of personal policy premiums. This is currently the status quo and nothing in the proposed legislation seems to want change this.

4. Employee Pre-Tax Payment of Premiums through POP Plans - Employees will be allowed to redirect a fixed amount of their pre-tax salary to pay for (or reimburse) the premium on a personal health policy. Eleven (11) states have already mandate that employers provide this upon request by even a single employee. This is also currently the status quo and nothing in the proposed legislation seems to want change this.

No one can say today what final U.S. healthcare reform will look like, or even confirm that there will be a healthcare reform bill in 2009. But, at least today, all signs are very positive for defined contribution, employer-funded, personal health benefits.













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Disclaimer: The information provided on this website is general in nature and does not apply to any specific U.S. state except where noted. Health insurance regulations differ in each state. See a licensed agent for detailed information on your state. Zane Benefits, Inc. does not sell health insurance.