Cost of Health Insurance

What Determines Your Costs and What the Average American Pays

Much of the recent debate about health reform in the U.S. has focused on the cost of health insurance, which is not affordable for many Americans.However, the Patient Protection and Affordable Care Act signed into law on March 23, 2010 mostly addresses access to health insurance coverage and assures that all Americans who need coverage will be able to get health insurance. It is not clear how the legislation will impact the cost of health insurance, especially premiums and out-of-pocket expenses. It is likely the costs will continue to increase for the foreseeable future.How much health insurance will cost you depends on your age, the condition of your health (how healthy or unhealthy you are), where in the country you live, your income, and your job status.There are many ways that you can get health insurance, and these too can determine how much you will pay. These include:

Health insurance provided by an employer. Most large and midsize companies in the U.S. provide health insurance as an employee benefit. The majority of Americans who have health insurance get it from the company they work for.

Health insurance that you purchase on your own. If you are self-employed or work for a small company that does not provide health insurance, you will need to buy insurance.

Health insurance provided by the government. If you are 65 or older, disabled, or have little or no income, you may qualify for health insurance paid for by the government, such as Medicare and Medicaid.

What Do Health Insurance Costs Include?

There are many things that determine how much your health insurance will cost you each month.

Premiums

A premium is the monthly fee that is paid to an insurance company or health plan to provide health coverage, including paying for health-related services such as doctor visits, hospitalizations, and medications.If you have job-related insurance, your employer pays the monthly premium. Most likely, your company will require that you pay some portion of the monthly premium, which will be deducted from your paycheck. If you are self-employed, or buy your own health insurance, you pay the entire monthly premium.Whether you get health insurance at work or buy your own insurance, your premium may be higher or lower depending on what type of insurance plan you choose. Plans that have high out-of-pocket costs (deductibles, coinsurance, and copayments) most often have lower premiums and plans with low out-of-pocket costs have higher premiums. Also, a health plan (such as an HMO) that requires you to use a network of doctors and hospitals usually has a lower premium. You also will pay more for health insurance that covers members of your family.If you buy private insurance for yourself (or other family members), your premiums will be higher the older you are, if you are self employed in a "dangerous" job (such as a flight instructor), or have a chronic health condition (such as type 2 diabetes or high blood pressure)

Out-of-Pocket Expenses

Out-of-pocket expenses are what you pay for health-related services above and beyond your monthly premium. Depending on your health plan, these expenses may include an annual deductable, co-insurance, and copayments for doctor visits and prescription drugs.

Deductible: A deductible is the amount you must pay out-of-pocket each year for health-related expenses before your insurance policy begins to pay. Deductibles are common in PPOs for health care services received outside the PPO network. If you have Medicare, you will most likely have to pay a deductible for medical services and a separate deductible for medications under Medicare Part D.

Coinsurance: Some health insurance requires that you pay a percentage of the cost of covered health-related services after you have met your annual deductible. This is known as coinsurance and most often is about 20% of what your health plan approves.

For example: Mr. Jones has a family health plan with a $500 annual deductible and 20% coinsurance. In February, his wife and two children got checkups. Mr. Jones paid the physician for these services, which cost $510. In March, one of the children got sick and the cost of the office visit was $50. Since the annual deductible was met, the health plan paid the doctor $40 (80%) and Mr. Jones paid the doctor $10 (20%).

Copayment: A copayment is a flat fee, or set amount that you may have to pay for a specific health-related service. Copayments are very common in managed care plans (such as HMOs and PPOs) and in drug plans such as Medicare Part D.

For example, typical copayments are $20 for a doctor visit, $50 for an emergency room visit, and $10 to $40 for a prescription medication (depending if your prescription is for a generic drug or a brand name drug).

What Does the Average American Pay for Health Insurance?

This is a complicated question to answer. More than 85 million Americans get health insurance through the government, including Medicare, Medicaid, veterans' benefits, and the military (both active duty and retirees). Currently, more than 45 million Americans have no health insurance.Most Americans with health insurance get it from their employer and more than 26.5 million Americans are covered by individual plans that have been bought directly from an insurance company.In a report (Individual Health Insurance 2009: A Comprehensive Survey of Premiums,Availability, and Benefits) made public in October 2009, America's Health Insurance Plans (a trade group representing health plans) presented some information that gives a sense of what a health insurance policy costs when purchased by an individual.

• On average, the annual premium was $2,985 for a single person and $6,328 for a family.
• The annual premium differed from state to state. For example, the premium for a family health plan in New York was $13,296, while a similar plan in Iowa was $5609.
• The annual premiums for health plans were also different depending if the annual deductible was high or low. For example, family plans with no deductible had an average premium of $12686 each year, while plans with an annual deductible of $10,000 had an average premium of $5380 each year.

Private Medical Insurance

PMI also referred to as Private Medical Insurance is a private way of getting medical treatment. It is an insurance policy that will ensure that your family and you receive the treatment as soon as possible without having to wait for NHS treatment. NHS is however a great option for your primary care but waiting for treatment can be physically and emotionally treacherous and hence you will need to have an alternative when the treatment need arises. With Private Medical Insurance, you will be sure that you are covered.

PMU is quite affordable and you will find effective plans to give you the peace of mind you require as far as medical treatment is concerned. It is a great way of taking care of those medical treatments which cannot wait. It is however important to let the PMI work together with NHS since most private hospitals will normally lack emergency and accident sections and hence when is such situations, you will still require the help of NHS.

When taking up the Private Medical Insurance, it is important that you take the time to compare all available health policies from all major private companies offering the medical insurance. There are a number of such companies with a great reputation and you will easily manage to choose the policy that is most suitable. The company offering you the comparison should also give you all the advice and support that you need freely to ensure that in the end you benefit from help.

There are numerous firms offering the comparison services for your private medical care but when choosing the best, it is important that you settle for that which has your best interests at heart.

For instance, a firm offering you free quotes with no obligation, review of the entire market and also safe, secure and fast comparison between the health insurance providers is best to go for. The charges should be reasonable and you should manage to save money in the process of finding the right insurance company to cater for your medical needs. Insurance providers are numerous in the market and the comparison is therefore necessary. Consider the policy in relation to the health issues you want taken care of as well as the rates for the policy. With such simple but important considerations, you will always end up in the hands of the best insurance provider for your private medical needs.

Accident Sickness Insurance

Most people do not think much about what would become of them or their families in case they are not in a position to work as a result of an illness, accident or even redundancy. It is always a good idea to have a sickness policy in place as well as an accident policy which will come to your rescue when you most need the financial assistance. It is the best way to have assurance of getting through the trying difficult times.

Nowadays, there is the accident sickness insurance that combines both sickness and accident as well as unemployment thus giving you the assurance that all will be well in terms of finances in the event of any of these situations. The financial backing is of great importance especially since you will still have bills to pay and even a family to take care of during the difficult period. The ASU policies are however time limited and they will come to your rescue during the period. The time can be anything from months to few years.

The ASU cover benefits

When you have an accident, sickness and unemployment cover, you will have the benefit of having your mortgage payments taken care of. This is a field when most people get concerned but with the cover in place, you will still manage to keep up with the mortgage payments.

The other benefit that comes with the cover is you will have all household bills taken care of till you have completely recovered or found another form of employment. The insurance providers will disperse a good amount of money to your family for the daily upkeep which means that all the bills will be settled and every other need in the house taken care of thus giving you enough time to recover well and with the peace that you deserve.

Self employed and people with jobs without any form of sick pay will greatly benefit from the ASU cover. It is a great way of eliminating the financial risks that such jobs have especially as far as sickness is concerned.

It is therefore without a doubt that this is one of the best covers that you can consider in time. You can begin by comparing what the different policy providers have to offer under the cover so that you make the right decision and be under a plan that you will enjoy and manage to keep up with.

A Guide to Taxi Insurance

As a licensed taxi/private hire driver you will definitely require a hire and reward insurance policy for your vehicle. Initially this may seem like a daunting task. You want the cheapest possible price but where do you go to compare minicab insurance prices online. Most car insurance compare websites on the internet only offer private car insurance but you require a private hire insurance policy.

Well help is at hand. Just type the words "taxi insurance" in a search engine and you will be presented with hundreds of taxi brokers that specialize in this field. Before you start asking for cheap taxi insurance quotations you will need to ensure that you have all the necessary information at hand. Question sets vary from insurer to insurer but generally speaking they all need to know whether you are a private hire or a public hire driver.

If you just own a single taxi car you need to decide who else will drive this vehicle. Some taxi insurance companies allow multiple drivers on a vehicle. Perhaps you wish to add your spouse on the policy for social, domestic and pleasure use, but remember not all insurers allow this option. If this is one of your requirements let the insurance advisor know about it during the quote stages.

Important rating factors that could affect the cost of your hire and reward insurance include the area you are licensed in, your age, vehicle group, length of driving license, previous taxi insurance are just a few to name.

Other important factors that dictate whether you will be eligible for cheap taxi insurance include the number of driving convictions and any previous claims. Some insurers will ask about claims history for the last 5 years and others only go back as far as three years.

There are many additional options that are available as add-ons to a taxi insurance policy. You could also obtain a taxi breakdown assistance cover, legal expenses policy and public liability. With some taxi insurance companies these additional options are included in the package whereas others charge a small premium for the add-on products. Again check with your taxi broker what options are available to you.

As with any type of contract ensure that you have disclosed all facts honestly to your taxi advisor as any material facts not declared or otherwise incorrectly declared could lead to your policy being invalidated or a claim not being paid. Before signing any proposal form check that all the information is correct and contact your broker if there are any inaccuracies.

To get the best deal for your taxi insurance, shop around and try to obtain at least three or more quotes from reputable taxi insurance companies. Also ask your fellow colleagues as to where they are insured and how they have found the service of their brokers.

Purchase baggage travel insurance

  Purchase baggage travel insurance

It has recently been noted in the news that the US Travel Insurance Association has urged Americans to purchase travel coverage for covering the delay. The Bureau of Transportation Statistics stated that the country's largest airlines had a mishandled baggage rate of 7.35 reports per 1,000 passengers in the first three quarters of 2007. That is a lot of bags lost!

It is impossible to avoid the loss of you bags at some point in your traveling life. Sometimes the travel gods just conspire against you. Many travelers assume that the airlines must cover delayed baggage, but this is not usually the case. Airlines in the United States are usually liable up to $3,000 on domestic flights for damaged or lost baggage, but compensation for bagge delays in case of situations beyond the airline's control, such as bad weather, is up to the individual airline carrier. Some carriers may just provide some simple toiletries and a small amount to cover other expenses. Finally, the delay may have to be over 20 days to constitute a delay.

That is why it is a good idea to get vacation insurance plan that covers baggage loss and delay. Some travel insurance suppliers offer baggage loss and delay insurance plans on their own.  TFG Global Travel Insurance.com offers excellent travel insurance that offer baggage delay and loss inside the trip cancellation and interruption coverage plans.

If you are traveling, make sure that you leave expensive items that are above the baggage insurance maximum set by the insurer at home. You might want to keep that expensive watch or ring at home or in the safe deposit box.

Travel Insurance is vital for business travellers

Travel Insurance is vital for business travellers

Business persons who are traveling should make sure that they get adequate travel insurance when they travel on business. The Travel Industry Association of America recently reported that business travellers are taking approximately 5 work related trips per year. Business owners should make sure that they are and their employees are covered by a comprehensive travel insurance policy that will cover medical and evacuation expenses. Such costs could cripple an employee's finances and he or she may look to the employer to cover these medical costs, especially if they are on company business.

Employers should purchase a single or group travel insurance policy to cover employees while traveling for business. If employees are traveling more than one time per year, a multi-trip travel insurance plan is the most cost effective travel insurance plan. A group travel insurance plan can also offer great savings either on single or multi-trip basis. It is recommended that such a group multi-trip plan, which can be a stand alone plan or part of a group benefit plan, also cover the employee while he or she is on non-business trips.

Medical evacuation coverage is a must for any travel insurance plan as the costs can also run into the thousands of dollars and the travel insurance assistance provider can coordinate the evacuation details. Most travel insurance plans include medical evacuation, but it can be sold on a stand alone basis for individuals and groups. A business travel insurance plan can also aid in assessing your medical condition, provide translation or even legal help.

Some business travel insurance plans also include coverage for baggage loss, which is quite common these days, especially in some airports such as Terminal 5 at Heathrow. Some business travel insurance plans also include trip cancellation and trip delay, but these can also easily be purchased on a single trip basis.

For business trips to dangerous regions such as Iraq or Afghanistan, make sure you get a travel insurance policy that willcover terrorism and war risk. You may also want to obtain Accidental Death and Dismemberment coverage to cover travel to dangerous regions.

If you are a business traveller this year, make sure that you check to see if your company travel insurance policy exists and if it will cover you while traveling on business and/or pleasure. Also, note that Expedia's online poll revealed that 19% of US travellers postpone or cancel holiday travel plans because of work reasons.

Four Things About Travel Insurance You Should Know

Four Things About Travel Insurance You Should Know

If you are planning a short get-away to the sun, a ski holiday to the Alps, a cruise or adventure safari, you should make sure that you get travel insurance. We have compiled 5 things you should know about travel insurance:

1. What does it usually cover?

Travel insurance coverage varies from insurer to insurer, but there are two major types:

• Travel Medical & Evacuation Insurance: This covers the medical emergency expenses while you are on your trip
• Trip Cancellation & Interruption: This vacation insurance is probably the most common type of travel insurance policy sold in North America. It covers the non-refuntable trip costs if you can’t travel due to unforeseen circumstances such as illness or financial default of the travel carrier. It also covers you if you become sick during your trip and have to return home.
• Flight Insurance: Covers Accidental Death & Dismemberment while you are traveling on the commercial aircraft.
• Trip Delay: Provides a nominal reimbursement for travel delays such as plane departure being postponed.
• Baggage Insurance: Provides reimbursement for lost or stolen coverage that is usually part of a vacation insurance plan.
• Assistance: Most insurers provide a 24 hour hotline for help with medical care, transportation and accommodation needs, notification of family and friends in case of emergency.

Note: The policies via TFG Global Insurance Solutions Ltd. and its related web sites offer are not available to citizens currently residing in the USA.

The above plans are usually sold as single trip plans. But the vacation insurance and the travel medical and evacuation plans are also sold as annual multi-trip insurance plans that cover you throughout the year up to 1 month per trip.

2. How much does it cost?

The cost of annual travel insurance policies is dependent on one’s age, trip length, trip cost, the plan you want and coverage limits. Trip cancellation and interruption plans on a per trip basis are typically based on the cost of your trip, your age and amount of coverage you want. Most vacation insurance plans are between 4% and 8% of total trip price. 

Travel medical and evacuation plans are quite inexpensive, especially if you are young.

3. Won’t my domestic insurance plan cover me?

It is important to know what coverage you may have through your home or health insurance, or on your credit card. However, only travel insurance provides trip cancellation/trip interruption coverage, protecting your financial investment. And not all health insurance plans will provide full coverage when you travel internationally or outside of a designated network area. (For example, Medicare does not cover health care expenses outside of the United States.) Medical evacuation coverage is rarely covered in most standard health insurance policies.

4. Why should I buy a travel insurance plan?

Here are six reasons to buy travel insurance:

• To protect your personal items while traveling
• To protect your financial investment in your trip
• To protect your health and well-being.
• To cover the high medical costs associated with getting sick or injured while traveling abroad that may not be covered by your domestic health plan.
• To cover the cost of being evacuated to a medical center of excellence or back home.
• Peace of mind

Travel insurance is a great value for travelers who are concerned about: their trip being cancelled, delayed or interrupted for reasons outside their control; urgent access to medical care while abroad, medical evacuation and payments for those services; and protection of personal baggage.

AMA: Health insurance companies botch up to 20 percent of claims

Many NaturalNews readers have likely experienced, if even just once, the hassle of having their health insurance company improperly file a insurance claim, which can result in filing disputes, delayed payments, and other administrative problems. According to the American Medical Association (AMA), as many as 20 percent of health insurance claims are improperly filed, which reportedly adds an additional $17 billion a year to the overall healthcare burden.

The new AMA report explains that insurance company filing errors have increased two percent over last year's figures, now topping 19.3 percent. Among the top insurers, UnitedHealth had the lowest error rate of 9.77 percent. Regence Group Blue Cross Blue Shield was next at 11.59 percent, followed by Health Care Service Corp. at 12.96 percent. Anthem Blue Cross Blue Shield had the worst error rate at 38.95 percent.

"A 20 percent error rate among health insurers represents an intolerable level of inefficiency that wastes $17 billion annually," said Dr. Barbara McAneny, an AMA board member and medical oncologist from New Mexico, to the Chicago Tribune. "Health insurers must put more effort into paying claims correctly the first time to save precious health care dollars and reduce unnecessary administrative tasks that take time and resources away from patient care."

On the positive side, the report explains that insurance companies are doing a better job of reducing "denial rates" these days, and it also notes an improvement in insurance company response time to claims. But many doctors still do not submit claims electronically, which the AMA claims may be responsible for delaying some claims.

Meanwhile, the AMA's expressed support for the provisions in last year's health care overhaul is likely responsible for the group's loss of 12,000 members last year (http://www.chicagotribune.com/business/feed/ct-biz-0620-ama-meeting-2...). Many former AMA members oppose the group's endorsement of the health care bill's individual mandate, which requires individuals to purchase health coverage.

House Approves Affordable Health Insurance for Unemployed

The American Recovery and Reinvestment Act authorizes approximately $544 billion in new spending and $275 billion in tax cuts. The purpose of this legislation is to stimulate the economy by preserving and creating jobs, helping the unemployed and uninsured, and assisting states with budget relief measures. The U.S. House of Representatives has just approved measures to expand access to affordable health care coverage for workers who become jobless because of the recession. It is estimated that this package will help 8.2 million people keep their health care coverage.

It is expected and predicted that millions of Americans will lose their jobs because of the recession. With these job losses they and their families will then become uninsured. This bill will enable states (through Medicaid programs) to provide immediate assistance to families like this while they search for new jobs. Other federal funding will be earmarked for hospitals, doctors, clinics, and pharmacies to enable them to meet their payroll requirements and continue to employ the staff necessary to care for the people who have lost their jobs.

Often these unemployed families are enduring economic crisis and any health condition may be enough to push them to bankruptcy. If middle-class Americans experience job and wage cuts and a loss of health insurance they may not be able to keep up with monthly expenses like mortgages and college tuitions. This bill will enable funding for families in dire need and will also enable coverage for everyone while in the process of the pursuit of comprehensive health reform.

With the unemployment rate expected to continue to climb, the number of people without insurance is also expected to climb. Under current legislation, eligible former employees can continue to receive health coverage through their previous employer's insurance plan for up to 1.5 years. However, they must pay 102 percent of the cost of this coverage. This is called the Consolidated Omnibus Budget Reconciliation Act (COBRA) and it gives workers and their families who lose their health benefits the ability to choose to continue their health benefits provided by their former employer's group health plan. This is a huge benefit to millions of Americans and it is important that newly unemployed Americans continue to have access to health insurance they can afford.

Three key provisions in the American Recovery and Reinvestment Act for helping these American workers are:

1.Give a 65 percent subsidy for COBRA premiums for up to one year for workers who have lost their jobs between September 1, 2008 and December 1, 2009.

2.Make funding available to states that agree to provide Medicaid coverage to these unemployed and uninsured workers and their families.

3.Extend the COBRA benefits for older and long-term employees until they are able to find new health insurance coverage through future employment or they become eligible for Medicare.

Senate Passes Health Insurance Bill for Children

The Senate has approved legislation to provide health insurance to 11 million low-income children. For the first time ever, this bill will spend federal money to insure children and pregnant women who are legal immigrants. The House approved this legislation on January 14 and President Obama will most likely sign a final version, possibly even next week.

The State Children's Health Insurance Program is primarily for families that earn too much to qualify for Medicaid but not enough money to be able to afford private insurance. This program currently covers almost 7 million children and costs $25 billion.

The decision to renew this program and spend $32.8 billion more to expand coverage to 4 million more children came Thursday. This additional spending will be paid for by increasing the cigarette tax from 39 cents to $1 per pack.

"Low-income, uninsured kids all across America have been waiting for Congress to fulfill the promise of the Children's Health Insurance Program for them," said Senate Finance Committee Chairman Max Baucus (Montana).

This political victory may come at a price, however. The spirited debate on this program brings concern about whether Republicans and Democrats can work together to pass more health reform later this year. Lawmakers are reported as expressing "disgust" with the way Democratic leaders conducted themselves during the debate. This vote came only one day after the House passed an $819 billion economic stimulus package, and did so without even one Republican vote.

The children's health program was created in 1997 under a Republican-led Senate. Since that time the program has benefited from broad bipartisan support. Many governors, business executives and consumer advocates have lobbied for the expansion of this program. The belief is that more and more families need this kind of assistance in this current economy.

"During this economic turmoil, it is critical that we maintain and strengthen this important lifeline to our nation's children and that we help financially strapped states respond to the growing need for affordable health-care coverage," said Cindy Mann, executive director of Georgetown University's Center for Children and Families.

This current bill is similar to versions that had the support of many Republicans. However, Republican lawmakers are now objecting to a new provision that allows states to enroll certain legal immigrants. Until this point, many immigrant families have had to wait five years to be eligible for coverage.

There were more than two days of debate and there was unusually strong language during the debate. Republicans have expressed a sense of disbelief that Democrats would drop the compromise from 2007.

Both parties had hoped that initial bipartisan action on children's coverage would show that the elected lawmakers would cooperate on these important issues. There is hope that the American people's strong desire for health care reform will force both the Democrats and Republican lawmakers to  work together.