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Beware the Health Insurance Bundle
Posted by | Posted in Personal Health | Posted on 03-07-2009
Sometimes in business it seems like getting several services from the same company is a value, and it can be. We use Bellsouth for our internet, phone and fax needs. It just worked out better.
But sometimes a “bundle” can be little more then a distraction.
Sometimes with health insurance, certain companies will offer a substandard major medical plan combined with a substandard dental and vision plan.
At first glance, a potential consumer may be fooled into thinking that they are getting more for their money. And in reality they end up with a whole lot …of nothing.
It can turn into a bit of a “shell game.” Money gets wasted like this all the time. I believe what happens is that people want to feel like they are going to get something for their health insurance premium and they say to themselves, “Well, we will probably never use up our deductible, so we might as well take this guy’s plan with the dental attached to it and then at least we will get some use out of our insurance.” Every single time they lose money this way.
Even the best individual plans out there that offer the best dental available have a benefit maximum of $1000 per person per year. So, when you take into account the monthly premium, the per family member dental deductible and the 50% coinsurance
On all procedures that are above preventative … is it worth the money?
That goes double for these “association” based plans that offer additional benefits for the self employed, etc. Again, a distraction and not in your best interests. All these “techniques” are designed solely to take the consumer’s eyes off of the details of their major medical health insurance coverage. End of story. You pay for your own cleanings and the possible root canal, etc. on your own; you will ALWAYS save money at the end of the year when measured against your dental coverage and premium. Insurance companies LOVE when agencies attach or sell plans with these built in ancillary products because they ALWAYS make money on them. Us, we don’t care about insurance companies, we care about our clients.
You want to focus on one thing at a time with the understanding that acquiring the most value possible for your health insurance dollar is of paramount importance.
Watch the video related to personal health insurance
Expand the description and view the text of the steps for this how-to video. Check out Howcast for other do-it-yourself videos from samselthedamsel and more videos in the Health Insurance category. You can contribute too! Create your own DIY guide at www.howcast.com or produce your own Howcast spots with the Howcast Filmmakers Program at www.howcast.com Use these tips to find a health plan that meets your needs and your budget. To complete this How-To you will need: Research A high deductible A health savings account (optional) Step 1: Check state laws Become familiar with the health insurance laws in your state. Type the name of your state and “health insurance laws” into a search engine to find the appropriate government web site. Step 2: Check out group rates Check out policies that trade associations offer; they often have lower rates. But make sure you’re contacting a reputable trade group. Some lure in members with low premiums that jump up in a year or two. Tip: If you’re self-employed, see if your state offers group rates to businesses with just a few employees. Step 3: Comparison shop Comparison shop either on your own or with the help of a health insurance broker. Locate the latter through nahu.org. Step 4: Read the fine print Buyer beware: Some policies offer only “limited benefits,” a distinction that’s not apparent unless you read the fine print. Tip: Three-quarters of Americans who are pushed into personal bankruptcy by medical problems had health insurance <b>…</b>
Help answer the question about personal health insurance
need personal health insurance, I am 25 and healthy..?Hello, I am currently self employed and looking for low-cost health insurance. I do not smoke and am healthy. I would like something with a very low deductable for if I go to the emergency room. I want it to be real insurance and not some discount plan like my last policy. Any recommendations for me? Thanks!
You can easily check your minimal health care rates in internet, for example here – health-quotes.talk4fun.net
YOU need to obtain it from your prior insurer.
Way to go Dave! Thanks for standing up for us!
Is this an S-corp or a C-corp?
If it's an S-corp, the premiums are included in the wages on the W-2, but then excluded as an adjustment on the front of the 1040. It wouldn't make a difference on collecting EIC.
Edit, as 100% owner of the S-corp, he *can't* deduct it any other way. The IRS will figure this out on an audit and then BOTH of you will owe the excess refund back.
See page 15, column 1 and column 2 of the 1120s instructions. Specifically the part about insurance being included in box 1 of W-2 and deducted on line 29 of the 1040.
http://www.irs.gov/pub/irs-pdf/i1120s.pdf
And no, it doesn't come out the same for EIC.
Claiming $30K in wages vs claiming $33K in wages and subtracting $3000 in premiums is a difference of $2447 in EIC vs. $1816. The excess $631 is illegal.
Since you've already identified the issue–that the bogus calculation makes you eligible for EIC when it shouldn't, don't sign.
Unfortunately, affordable for someone 54 isn't likely. Well, I guess affordable is a relative term.
It depends on your geographic location. I assume that you're in CA. If so, your best bet is to apply for coverage through a group (in CA a group is 2 or more people). If you don't have a group, create one with a friend or colleague. If I'm not mistaken, groups cannot be denied coverage. The insurance companies don't have to make the coverage cheap but they have to provide it. Best of luck!
They try to do it in thirty days, however, it can take longer due to obtaining the necessary doctors reports. I have seen it done in fifteen days and as long as five months. It also depends if you are going on a group plan or as and individual…Good Luck….
As long as you keep asking these vague questions, you'll never get intelligent responses.
You need a trusted adviser to help you through the process of purchasing health insurance so that you understand what you are purchasing. Some may suggest going on line to get a quote but you probably already know that there is much more to health insurance than price. Some might even suggest a discount plan which is not insurance at all.
Ultimately, you are the one who determines the affordability of your health insurance plan by deciding how much you will participate in sharing the cost of your health care with your insurance company.
If you choose a plan that covers everything i.e. doctors office visits, prescription drugs, preventative health benefits, maternity coverage as well as low deductibles and low copays your monthly premiums will be significant.
On the other hand if you are reasonably healthy and use the health care system infrequently you could consider a plan that covers only the major health catastrophe which will result in a relatively low monthly premium. You then can use the monthly premium savings to pay for the occasional doctor visit and still come out ahead.
You might also consider a temporary health insurance policy if you anticipate getting another job with benefits.
Check with the agent that writes your home or auto insurance he/she can provide you a health insurance proposal that takes into account your budget and health situation. They can answer questions as to what is and is not covered by the policy, explain deductibles and copays and show you the hospitals and doctors that participate in the network.
Use the Internet to educate yourself but use an agent to purchase the coverage.
My husband is a retired Marine, so we use Tricare for our insurance. We pay only $115 every quarter, so we are very fortunate to have insurance for such a low cost. This price includes all family members, including kids until they're 21, or 23 if they're a student full time. The only problem I've had and many people have gone through the same thing is that they've switched formularies several times on some medication I take, forcing me to switch to another brand or I would have had to pay a much higher co-pay. And one time I had to have a procedure done and they made me go to a military base to have it done instead of going to a regular doctor out in town. If you're within so many miles of a base and need something done, they will probably make you go to the base. We lived farther away than the maximum miles, but I still had to go to the base.. It wasn't no big deal, but I would have liked to have stayed with a local doctor. We previously used Aetna with my husband's former employer because my employer didn't take Tricare (a doctor's office) and our co-pays were written off since we were employees. I never had any problems with Aetna.