Protect Yourself With Critical Illness Insurance

Critical illness insurance in today's world is very necessary. People who are surviving from major health concerns, in that same process need funds for recovery. With that, lets discuss how a Michigan critical illness policy works.

The critical illness policy that we offer gives a Michigan consumer protection in regards to heart attacks, life threatening cancer, kidney failure, strokes, and organ transfers.

* I am sure we all know someone who has had a heart attack. According to Americanheart.org, 425 thousand people have died from a heart attack since since 2006. However, what is more important is people are surviving after heart attacks. From "1996 to 2006 the death rate from coronary heart disease declined 34 percent." With this stat, people should understand the need for critical illness protection.

* Cancer.org recently brought out their stats from 2009. Cancer has been the number two killer since 06, only behind heart attacks. What is most important? "Compared to the peak rate of 215.1 per 100,000 in 1991, the cancer death rate decreased 16% to 180.7 in 2006. Rates for other major chronic diseases decreased substantially during this period."

By reading this posting, you should understand my point. Consumers are surviving from heart attacks, cancer, strokes, kidney failures, and even organs transfers. So how does a critical illness policy work?

The consumer picks and benefit ($10,000 - $100,000) and if he/she suffers one of the five illnesses that I have named, then the benefit is paid out. You also receive 25% of your benefit if you need angioplasty or artery bypass. It is that simple in a nutshell. That payment can be used to pay off your health insurance deductible, traveling bills, etc.

When it comes to pricing, it is beyond affordable.

Age 35 male, $10,000 benefit, non tobacco $15.42 $25,000 benefit, $31.88

Age 35 female, $10,000 benefit, non tobacco $11.59 $25,000 benefit, $22.23

Age 50 male, $10,000 benefit, non tobacco $34.32 $25,000 benefit, $79.04

Age 50 female, $10,000 benefit, non tobacco $24.02 $25,000 benefit, $53.30

The one question I get with regards to our critical illness is what happens if I die without using the policy? I pay and what do I get? With our policy, if you pass without using your policy, your beneficiary will receive all the premium you have put in. Your money does not go to waste.

Another perk with this policy, is if we combine it (husband + wife), the premiums actually become cheaper.

This policy is underwritten, so be prepared to answer health related questions.

When you sit back and actually think about who you know, it has to be concerning if you know of someone who has suffered one of the illnesses mentioned. They probably had to pay their health insurance deductible, medications, and possibly even bills if they were out of work for a substantial amount of time. With critical illness protection, all those worries could be taken away. You do not need those headaches mentioned above if you are recovering from a serious illness.

Maternity Leave Benefits - At No Direct Cost to Employers

Creating viable maternity leave benefits is a vexing problem for many small businesses. Helping female workers fund their maternity leave is a noble goal. But funding maternity leave is very costly, and creates a favored employee class: working women in the growing family life stage. Voluntary employee benefit programs help employers create maternity leave benefits that fund maternity leave, treat all employee classes equally, and come at no direct cost to the employer.

Maternity Leave Benefits

Women in the growing family life-stage will gravitate to employers offering maternity leave benefits. Having and raising children is quite expensive, and to begin the journey with six to eight weeks of unpaid leave is a burden to many couples. Plus, there is also the chance that mom may miss additional time from work prior to delivery due to complications, after work because of postpartum problems, or to take care of a sick or prematurely delivered baby. Any employer offering solutions to this wage gap problem has a leg up on recruiting and retaining workers in this category.

But how can a small employer offer maternity benefits without driving up costs, or unfairly favoring one employee segment over another? Providing six to eight week of paid leave is an option many small employers can not afford. When you add on the need to replace income for complications and/or care of a sick infant the costs can quickly spin out of control. Plus, employers need to consider how male employees and older female employees may feel about the extra benefits provided to one small segment of the employee population. Many employees will never use maternity benefits, and may seek an alternative form of compensation - raising the stakes yet again.

Voluntary Employee Benefits are the Answer

Voluntary employees benefits provide answers to these employer dilemmas. Voluntary benefits allow working women to create maternity leave income for their normal labor and delivery, plus provide protection in case of pregnancy complications, delivery complications, and premature birth. Employees pay for the programs themselves by payroll deduction, so there is no direct cost to the employer. Make the options available to all employees, and no special favors are being done for any single employee segment. Women in the growing family life stage will have their maternity benefits, and the remaining employees will have expanded options to protect themselves and their families in case of unexpected accidents and illnesses.

The most common forms of voluntary benefits are flexible spending accounts, and supplemental health insurance. Flexible spending accounts use pre-tax dollars to help lower a variety of maternity related expenses. A healthcare flex accounts can lower the costs of infertility treatments, pregnancy expenses, and left over medical bills associated with a long NICU stay for a sick infant. Dependent care flex accounts help lower the costs of child care, making it easier for women to return to work. Supplemental health insurance helps women create maternity leave pay for their normal delivery, plus it provides additional protection in case of pregnancy complications, delivery disorders, premature birth, accidents and illnesses.

Bridging the GAP: Changing Contracts and Benefit Structures to Improve Supplemental Products

Introduction

Consumer driven health care, and HSA's in particular, are powerful tools for containing cost increases in medical insurance. However, in the worksite market, especially in the blue-collar segments of that market, HSA's are not always applicable. Over the last few years supplemental carriers have redesigned GAP, critical illness and accident products to address more effectively the out-of-pocket costs borne by employees with high deductible plans. Having supplemental products underneath a HDHP is now a viable alternative for some accounts. This article explains the evolution of those products, their application to HDHP's and finally their relevance to medical brokers in terms of marketing and evaluating alternative plans. It seems counter-intuitive, but some employers are realizing large annual savings by going to a HDHP and providing the underlying supplemental GAP, critical illness and accident coverage. The cost differential between the traditional medical plan and the HDHP is more than enough to pay for the supplemental products.

From Individual to Group Contracts

Perhaps the most important trend in worksite products recently has been the move from individual contracts to group contracts. Group contracts provide more flexibility for employers and lower costs for employees. Many traditional worksite producers are hesitant to use group products because of their lack of portability. I think this is of little relevance when using these products to complement HDHP's unless the underlying medical plan is portable. Both can be subject to COBRA and as medical plans become more portable (as stipulated in much pending legislation on both state and federal levels) the group voluntary contracts will also become more portable. In fact, some group voluntary carriers currently have a portability or conversion feature in their products.

GAP Plans and HSA's

Most GAP plans are not HSA compliant. There are some traditional hospital indemnity plans which can be sold alongside an HSA but the coverage is not as comprehensive as most employees would like because traditional hospital indemnity products provide no benefits for doctor office visits, diagnostic testing, outpatient surgery, etc. If these benefits are included in the hospital indemnity policy it is no longer HSA compliant. This leaves the employer implementing a HDHP with 4 basic choices:

1. HDHP with employer funded HAS. 2. HDHP with employee funded HAS. 3. HDHP with employer funded supplemental products. 4. HDHP with employee funded supplemental products.

Of course, there may be some overlap amongst these options.

Plan Design Alternatives

Most of the GAP plans available from voluntary carriers with Best ratings of A- or higher are built on the hospital indemnity ($500 to $5,000 initial admission benefit) chassis with one or some of the benefits listed below added.

Doctor's office visit ($25 to $50 per visit, annual limits) Diagnostic testing ($250 to $1,000 per test, annual limits) Outpatient surgery ($250 to $3,000 per surgery, annual limits) Wellness benefit ($25 to $125 per year) Rehabilitation unit benefit ($50 to $100 per day, annual limits) Emergency room benefit ($150 to $250 per visit, annual limits) Intensive care benefit ($300 to $800 per day, annual limits)

The internal limitations on these benefits definitely leave "gaps and holes" in coverage, but frequently these are not as great as the "gaps and holes" left by an HSA, depending upon plan structure.

Critical Illness and Accident Coverage

In addition to GAP plans, many employers also provide a low benefit ($5,000 to $10,000) critical illness policy and/or an accident policy. The critical illness policy pays a lump sum upon diagnosis of cancer, heart attack, stroke, Alzheimer's, etc. This provides the insured cash for expenses and treatments before the HDHP benefits begin. Accident coverage also provides first dollar benefits to the insured for medical expenses relating to accidents. With employer funding all these options should be economical and guaranteed issue, frequently with no pre-existing conditions clause.

Pitfalls

There are several pitfalls to this option which should be considered:

1. Gaps and holes will remain in the coverage, even though these may be less than in an employee-funded HSA.

2. Most supplemental carriers pay off of the major medical EOB. This may put the insured in a position of having to pay up front, then be reimbursed.

Advantages

Advantages to this approach which we have not discussed are:

1. The initial and obvious benefit of this option is greater employer and employee choice. It is no panacea for the cost problems facing the health insurance industry, but it does provide a different approach to be considered and analyzed.

2. If medical costs continue to rise and the employer needs to shift costs to employees, the supplemental products can be converted to voluntary products.

Computerized Comparisons of Alternatives

There are spreadsheet programs which are quite valuable in helping brokers and employers analyze alternatives. These display the current plan, the renewal quote and the new HDHP option and calculate the projected savings to both employer and employee. Then the supplemental costs and benefits are added to demonstrate which options are most cost efficient and which options provide the greater benefits.

If you would like a spreadsheet of the leading carriers' products, please send me an email.

Part D Enrollment Period - Big Changes For 2012 Plans

Almost everyone with Medicare or soon to be eligible for Medicare understands the value of joining a Medicare Part D Plan. The best time to join a Part D Plan is when you first become eligible for Medicare. By joining when you are first eligible you gain valuable coverage and avoid the Late Enrollment Penalty should you decide to enroll at a later date. But what if you want to join, switch or drop a Part D Plan? The Part D enrollment period, known as the Annual Enrollment Period gives you the opportunity.

When Medicare Part D Plans first became available in 2006 there were two distinct times to enroll or make changes. The Annual Enrollment Period (AEP) which originally ran from November 15 through December 31 and the Open Enrollment Period (OEP) which ran from January 1 through March 31.

During the AEP you could make changes with very little restriction. You could enroll in a stand-alone Part D Plan or join a Medicare Advantage Plan which included Part D coverage (MAPD). You could drop a plan or switch plans as you saw fit. You could even submit multiple applications with the last one received being the plan that you would ultimately join.

The OEP was little more restrictive. You could only make like-to-like plan changes with Part D being the determining factor. You were able to switch to another Part D Plan if you were currently enrolled in one. But were unable to enroll in a Medicare Rx Plan if you neglected to do so in the AEP. This enrollment period gave you the opportunity to make changes to your Part D coverage within the guidelines if you felt it was in your best interest.

People with Medicare liked the freedom afforded by these enrollment opportunities and insurance agents certainly liked being able to help a client who may have joined a plan that was less than beneficial for their circumstances. But the powers that be within the government felt that the Part D enrollment period needed fixing!

January 2011 saw the elimination of the Medicare Open Enrollment Period and the beginning of less choice for people with Medicare. Instead of the OEP a new dis-enrollment period was put in place. This period was only for people who enrolled in an Advantage Plan during the AEP who would like to drop that plan.

During the Annual Dis-enrollment Period which begins January 1 and ends February 14 you are able to drop your Medicare Advantage Plan and return to original Medicare. You can also purchase a different stand-alone Part D drug plan. If you choose, you can also purchase a Medicare supplement but may be subject to the insurance company's underwriting requirements. This does not allow you to switch a stand-alone Part D Plan. You are locked in.

Big changes are in store for Part D Plans with a January 2012 effective date. The Medicare Annual Enrollment Period has been changed. The Annual Enrollment Period for Part D and Medicare Advantage will now begin October 15 and end December 7. The extra week is nice but you better mark your calendar other wise you will be out of luck!

Plan sponsors should be releasing details of their Part D Plans and Medicare Advantage Plans earlier than in years past and information should also be posted on the Medicare website sooner as well. It is your responsibility to be proactive and research any plans you may be interested in prior to the Part D enrollment period end date of December 7.

Don't be one of the tens of thousands that will not get the word about these date changes. Be sure not to miss the opportunity to enroll in the Medicare Part D Plan of your choice.

Selecting The Right Deductible

If you are a professional of any field, it is very necessary that you carry adequate protection just in case you have to file an insurance plan claim. When you don't have enough protection to protect you against any suits that might be filed against you, your business could be at stake. This is the main reason why you are attempting to look for a professional liability insurance coverage, and are trying to work on finding the best deductible.

Prior to your plan of having any kind of insurance for your business, you have to first evaluate your urgencies. You have to consider the risks your business may possibly attain, the dilemmas you have encountered in the past years, and if you will be having more business deals which needs careful attention. If you think that your business will be filed a lawsuit and that it could be a relatively large amount of money, it is very necessary that you own adequate insurance coverage to protect that potentiality.

Now you have to consider the money you have in your pocket. How much money does your enterprise have reserve to invest for the insurance protection? Remember that your professional liability insurance protection is tax deductible, however you still need to pay. If you know the amount of money set aside then you can pay for your insurance protection and this will enable you to have a much easier way of choosing the perfect deductible.

After you know the amount of money you carry for your insurance protection, you have to begin looking for plans that fall in your criteria. You can have cheap plans if you have a bigger deductible. This refer to your finding out of the amount of coverage you prefer and know how high of a deductible you need to compensate in order to fit the premium to the budget your business set aside.

Prior to deciding on a deductible, you have to make sure first that you will be able to pay the deductible in the event somebody files a suit against you. You have to accept the fact that you may be hauled into court in the near future.

If you are getting an insurance plan, it is very important to read every portion of the plan. It may be very tiring and difficult to read through because it is very long, however this is something that is very necessary. You may want also to take the policy documents to your lawyers before signing all of them. This will make you rest assure knowing that you have gotten the protection that you require.

Medicare High Deductible F Should Be The First Choice For Medicare Supplements

People choose medicare supplement plans for a variety of reasons. Some people choose them based on the name of the company offering them, advice from family or neighbors, and advertising on TV. Others may go with advice from a local senior center or simply go with a Plan F because it offers the most coverage. Whatever the reasons may be, they are usually not enrolling in the most financially sound option.

High Deductible plan F should be the choice for any person over the age of 65 taking a Medicare Supplement Plan. ( I say over 65 because it is not usually available to those on Medicare under the age of 65) High deductible F is not as easy to understand as the more popular options such as Plan F,C,D or even plan N. However, if people did take the time to understand the plan, they would see that it is by far the best option from a mathematical standpoint.

Plan F High Deductible works in the following manner: It will cover the Medicare co insurance and cost share once a person spends $2,070 in any given year. In general, this means that when a person goes to the doctor, Medicare will pay 80% of allowable charges and the patient will pay the 20% left over. It works the same way with other services such as testing and physical therapy. If they go to the hospital, they will pay the hospital deductible and then Medicare will pick up the rest. If these expenses add up to $2,070 in any given year, the high deductible F plan will pick up the remaining charges just like a normal Plan F does from the start.

The reason that high F makes so much sense is the math. In many states, high F costs $33.06 a month. The lowest cost standard Plan F is $214.50 a month. Plan F covers all medical costs (Medicare allowable) so there is no out of pocket expense, but the premium totals up to $2,574.00 a year. Even if someone uses little or no services for the year, they will still pay this amount. High F has a total cost of $396.72 annual premium ($33.06 x 12 months) and a max out of pocket of $2,070 for a total of $2,466.70. The worst case scenario leaves the person with High F saving $107.00 for the year.

The reality is that few people experience the worst case scenario. Very few will actually hit the $2,070 deductible for the year. Some estimates show that only 5% of people accumulate over $2,000 of utilization. There are a number of sources that estimate how much the average senior actually accrues in part A and B co-insurance and deductibles for the year but the average seems to show it is about $900 a year. Given this estimate, the average senior would save about $1,207.00 a year on plan F high deductible. If they have a very healthy year, they will save even more. If they have a catastrophically bad year, they will only save $107 but there is no risk involved. At the end of the day, they will save money period.

Due to a general lack of understanding, High F will never be as popular as plan F but it should be the overwhelming choice for anyone in a supplement. The math behind it is undeniable.