High-Dedectible Health Insurance
Reader’s Question:
What is a high-deductible health insurance plan?
Danny
Las Vegas, NV
Thanks for asking, Danny.
This type of health insurance plan is also known as consumer-directed health plan, which is the newest wave in health insurance policies. It is considered ‘pay as you go’ policy and offer coverage only after you reach a deductible that is significantly higher than in traditional insurance plans. This type of health insurance policy tend to have much lower premiums than that of the traditional insurance as it has such high deductibles which can range from $1,000 to more than $10,000.
Also called HDHPs, enrollment in one can make you eligible to establish ad Health Savings Account (HAS) which can give you tax advantage significantly. HDHP is “HAS-qualified” if it has a deductible of at least $1,100 for a self only plan, $2,200 for a family and out of pocket maximum of $5,500 for self only while $11,000 for a family (this might subject to change over time).
Deductibles in HDHP can be very high but the plan provides some reimbursement for preventive services so you can schedule some “wellness care” before meeting the deductible. Most HDHPs can give you access to discounts which the health insurance company negotiates with (doctors and hospitals). Even if you are paying for care yourself, you will be paying lower rates for in-network providers.
What is HMO Health Insurance Plan
Reader’s Question:
What are HMO health insurance plans?
Anne
Los Angeles, CA
Hello there, Anne!
Health Maintenance Organizations (HMOs) are plans which are less costly and more hassle free than the other types of health insurance plans. Despite its being low cost, it can have a corresponding tradeoff like having a limited choice of doctors for the policyholder. Although for those concerned with choice of doctors, a hybrid plan called HMO with POS option is always an option for greater flexibility at a lower price compared to fee-for-service health insurance plans.
You see, common HMOs rely on a network of health care providers like doctors and hospitals to provide health medical services and benefits at a relatively reduced price. Some HMOs even have a staff model in which the HMO itself employs all of the doctors and health care providers which can extend medical services to its policyholders.
There can be a full range of medical services for most HMOs like doctor visits, hospital stays, emergency care, laboratory tests, surgery, and preventive care. In most HMOs, a primary doctor who will coordinate all of you health care will be assigned to you. In the event that you need to consult a specialist, the primary doctor will write you a referral letter to the specialist who will most likely be one of the HMO’s network of specialists.
HMOs can be cheaper for you but be aware too that you might be waiting for long appointment queues due to a limited choice of doctors and accredited providers.
Low Cost Health Insurance Online
Reader’s Question:
I have no health insurance policy and I have heard that I can get low cost health insurance through government programs. How will I become eligible for Medicare or Medicaid benefits?
Martin
Billings, MT
Thanks for asking, Martin!
Since I do not know your age, then I cannot tell if you are eligible for Medicare. But people 65 years old or older and those who are permanently disabled are eligible for Medicare.
With regards to Medicaid, that will vary from one state to another, but the general rule is that you should belong to the low income level. The odds of qualifying for Medicaid are also good if you are either pregnant, you are a parent or guardian of minor children, or you are aged, blind or disabled. What you can do best, if you cannot afford private health insurance policies, is to contact your state’s Medicaid office and find out if you are eligible for Medicaid coverage. You can also checkout online for some tools which can help you determine your eligibility for any government programs for health insurance coverage. There’s one from the Social Security Administration which is a screening tool that determines whether or not you are eligible for health insurance coverage/disability/low income benefits. Try to access www.benefitscheckup.org for a comprehensive source of links to other types of local government, state, or federal benefits that you can check out online.
Best of luck to you!
Health Insurance Tips
Reader’s Question:
My son will be gone for college on the east coast the coming fall. His school offers a student health insurance plan for $2500 which covers everything. He has a health insurance plan right now which will cover emergency room visits when he’s out of the state. His college has a mandatory health service fee of $275 that provides physician visits but no drug coverage, x rays, or lab work. Any tips on this?
Amber
Chicago, IL
Thanks for that question, Amber.
According to my daughter, who’s a University of Chicago student, in-school health insurance is overpriced. Besides, your son will not be spending much time in the clinic.
I have friends though who have Home Depot which not only covers a low-cost plan that works out of state. You might want to check that out. Also, another one I’ve heard of is HealthNet plan. Apparently, it gives worldwide and year-round coverage for off-campus care with specialists, hospitalization, and other medical services such as physical therapy, chiropractic, etc., pharmacy, lab work, x-rays, up to $250,000 annual coverage…all for only $275.
For a health insurance, I think $2500 is a bit overpriced. Besides, he’d probably get occasional visits and medical procedures. Most plans cover generic drugs. You need to check that whatever health insurance you get for your son, it should cover everything. That way, he can manage his own health care totally independently but from health insurance policy he has with him. This will spare you of additional anxiety and expense in case your son experiences medical emergency while he’s away. However, since price is not the sole consideration here, you better check out the other benefits of that health insurance. Check out ease of methods of pharmacy claims, and other expenses reimbursements.
Health Insurance New Orleans LA
Reader’s Question:
I am currently a college student and I am planning to purchase a student health insurance policy in Louisiana. I am no longer covered under my parent’s plan and I just want to make sure I would still have the health protection I used to have. I have already submitted my application through mail. When can I expect my application’s feedback?
Dorothy
New Orleans, LA
Some things can get so exciting, Dorothy.
Based on my experience, processing a health insurance policy in Louisiana normally takes a day when processed over the internet, as long as you pass the eligibility requirements and paid the premium. Usually, you will receive an email confirmation and/or acknowledgment of acceptance of your application by the insurance company. On the average, the health insurance ID card will be sent to you within 72 hours from the date of transmission or receipt of application.
It usually takes longer if you sent your application through mail. Eligibility checklist will be verified by the insurance company usually within 48 hours from their receipt of your application. As long as your application is complete and that you paid your premium in full, then your health insurance ID card and contract will be sent to you within 72 hours from their receipt of your application.
I know most students who are usually in a hurry to get a health insurance to beat deadlines for submitting a proof of health insurance coverage to their schools. If you are one of these students, then you actually need to process your application with an allowance of 2 weeks before you need the proof of insurance. So if you ran short of time, you can probably present your proof of payment instead to certify that your health insurance policy is still being processed.
Child Life Insurance Policy South Carolina SC
Reader’s Question:
What happens if I want to get an life insurance policy for my disabled child? Are there any available insurance policies in Greenville, South Carolina for such cases?
Vic
Greenville, South Carolina
Hi Vic!
Unfortunately, there are no known insurance companies in Greenville, South Carolina that exclusively deal with such situation. There are also no known private insurance policies found in Greenville, South Carolina which offer fund for the purpose of saving for the tending of disabled children. The State of Carolina though gives remuneration for disabled children such as SSI also known as the Supplemental Security Income, and the Medicaid. Then again, you could opt to get a life insurance available in the Greenville, South Carolina to assure your child’s future. You could get a special needs trust fund with a life insurance to help secure your child’s future. This insurance will not affect your child’s entitlement to getting the state government’s allowances. Please keep in mind that a trust fund is controlled by a trustee, which means that the money is not under your child’s name. So in legal terms, the money does not belong to your child. So you have to be sure that the trustee is a person you can trust. You can talk to the nearest insurance agent in Greenville, South Carolina for any other options available for you to avail of that is appropriate for your needs. Thank you for your inquiry.
Cheap Life Insurance Virginia VA
Reader’s Question:
An agent of a life insurance company here in Virginia suggests I should get a term life insurance if I want a cheap life insurance rate. Is she correct in saying that a term life insurance policy is the cheapest and the most popular option of all life insurance policy offerings?
Martha
Alexandria, VA
Thank you for asking Martha
Yes. Term life insurance is the simplest to understand and poses to be the cheapest to buy on a net cost basis. It provides death benefits without any savings, investment, or “cash value” components for the coverage period.
Over the set period of term, you are guaranteed that your premiums will not increase. The company cannot cancel you as long as you regularly pay your premiums. Term life insurance remains to be the popular choice due to its guaranteed renewal and guaranteed convertibility.
You can get instant quotes from the internet so you can compare the rates given to you in Virginia. Also ask your life insurance agent in Virginia if the policy offered to you contains guarantee renewable option, which grants you the right to continue coverage beyond the initial rate guarantee period without a medical exam. Also verify if it is guaranteed convertible, which reserves you the right to convert your coverage to any cash value policy that the company might offer at current rates without having to take a physical exam.