With the high deductibles and out-of-pocket expenses being of greater concern than in the past, please find this little nugget of information for your refresher course:
https://www.wellmark.com/insurance-explained/all-about-health-insurance-costs/out-of-pocket-costs
I will not be giving you a test, but I thought that this would be a quick cheat sheet on the terms that are commonly used when explaining health insurance to you. Hope this tip helps you.
https://www.wellmark.com/glossary#o
Individual disability income insurance is something that I believe in so deeply that I’m compelled to dwell on it repeatedly.
The fourth quarter of 2016 regarding health insurance is a major eye opener for a lot of people that I work with. As we all know, the individual health insurance market took a 43% premium increase in Iowa and by no means were we the highest in the USA for those increases.
So, we get people through this process, re-position the business owners into the group market and get them “better fitted” with the market they should be in, the products appropriate for them, their families and their employees and their budget. With the idea that this investment of time and effort would make their plans more affordable and more sustainable.
In the back of my mind, I know that this business owner with excellent intentions and a great track record is one slip away from failure and collapse of not only the business, the employees, the vendors, but this person and his family. If this business owner becomes extremely ill or injured, it causes their ability to earn to change. If they are able to produce, can they do the same job that they have always done, or do they need to hire someone to do that job for them?
All in all, it’s like putting a kink in the garden hose, the cash flow is either in a bind or has been cut off. A product called Disability Income Protection can be purchased by an individual or it can be purchased as an employer for yourself and your employees. There are many quality companies that we represent that offer disability income protection.
I’m going to attach a link sponsored by Principal that is brief and to the point about what is disability insurance and why you should have it. The average cost of disability income is generally around 1 – 2% of your income. If we look at all of the insurance that you should have – which seems overwhelming to you – rest assured that if all areas are addressed, proportionately, to your needs and your budget, you can cover all bases and be sustainable. Please call us, our consultations are free.
The lack of competition impacts the cost of our healthcare. The premiums we pay for protection against our healthcare costs and the quality and the satisfaction have been found to be unacceptable.
The failure of today’s system makes it challenging for employers to offer sustainable plans. The employer is faced with the difficulty of navigating a complex and fragmented system, the soaring cost for employers and employees and the significant effort needed to manage a high performing plan.
Healthy employees will help the bottom line. In addition to cutting healthcare spending, healthier employees contribute to your company’s bottom line through increased productivity, reduced absenteeism, higher retention, better overall engagement, better safety results and lower disability costs.
The four ways that employers can lead this transformation are as follows:
In 2016, there were reports that found 54% of employers have a company-sponsored wellness program which is up considerably from 2012. Not only are they growing in popularity, but the advances in medical technology can help improve the employer’s wellness programs and make them more effective at helping people keep their healthcare costs down.
For instance, there is tele-medicine, there is on-site medical clinics, wearable devices, on-site pharmacy, and more than half of these services has reduced the overall employee health cost. 61% of the employees interviewed agreed that they’ve made healthier lifestyle choices because of their company’s wellness program and healthy employees are happy employees, which makes your workplace more productive.
There is an increased demand for voluntary benefits. Voluntary benefits are an offering that the employer can make available to the employee. The employee pays 100% of the cost for these benefits on a group platform rather than individual if they feel the need.
With the high cost of health insurance and out of pocket costs rising, 79% of employees see a growing need for voluntary insurance as compared to last year. Voluntary products can include supplemental life insurance, disability income, critical illness, hospital indemnity, accident and cancer-insurance products which pay benefits when someone is sick or injured. These can also be expanded to include value-added services such as tele-medicine, fraud protection and medical bill negotiation.
A quality agent will take the time to invest deeply into your needs, your wants and your budget to find the right plan and the right fit for the least compensated employee to the highest paid person in your organization. Please call us, our consultations are free.
HSAs are IRA-like savings accounts for taxpayers covered by high deductible health insurance plans. If you meet the tax law requirements, you can make contributions to the plans. Withdrawals are tax-free for unreimbursed health costs; any unused amounts accumulate tax-free and can be used for future expenses and the best part…they can also be withdrawn as taxable penalty free payments at retirement.
Who Can Get An HSA and What is Covered?
To take advantage of an HSA you must first be covered by a High Deductible Health Plan (HDHP). You cannot be receiving coverage under another health insurance plan, be a dependent on someone else’s plan or be enrolled in Medicare. The HDHP premiums typically run about 50% lower than some traditional plans. An HSA works in conjunction with the HDHP.
The HSA money can be used to help pay for the health insurance deductible and “qualified medical expenses” not covered by the health insurance, including dental and vision expenses. HSA accounts earn tax-free interest. By using your local bank and a debit card for your “qualified medical expenses” you will have an electronic record of all deposits and expenses to keep with your income tax records.
For 2016, the federal laws limits tax deductible HSA annual contributions to $3,350 for singles and $6,750 for families. The out-of-pocket expense limits for HDHP’s are $6,550 for singles and $13,100 for families.
Most medical, dental and vision expenses will be reimbursed under your HSA with some exceptions. A list of reimbursable expenses is available on the IRS website, www.irs.gov.
HSAs For the Self-Employed: If You Are In Charge…Take Charge!
The benefits of an HSA:
If you already have medical savings accounts (MSAs) you can roll the amounts over into a new HSA. Your contributions are deductible. We are not CPAs and do not offer tax advise, we do recommend that you consult with your accountant or ask us for a referral.
We have HSA Comparison Tables for single and family plans for your reference when we consult with you.
Think of your life line/your household income as a garden hose. All of a sudden, there’s a slight kink in the garden hose and there’s not enough coming in to meet your needs. If this is a short term problem, you may be able to work your way through it. If this is a long-term problem, it may affect your family now and into their future. Their education and their well-being.
These types of disabilities can happen to any of us at any time. There are statistics and stories and possibly we all know people that have had an unfortunate thing happen. If you are employed by a corporation that offers you some short term, or a combination for short and long-term disability, you are very fortunate. Please understand the value of this benefit.
If you do not have it through your work place or if you’re self-employed, by all means, let’s look into this. This could make a huge difference to everybody under your roof. I have given you a link to my website that is a good pictorial for individuals and business owners so you can get an idea of why everyone should protect their income and savings from the risk of a disability. These products are offered to individuals as well as employers for their employees. A wonderful gift for any employee would be the offering of benefits. Let’s take a look at this in both markets, the individual and the work place market and know more about it. It is not expensive, but could make the difference.
It has been forecast that there will be a correction in the markets and it is wise to have a review of your investments and the allocations that you’ve chosen. There are many factors that play into this market correction, but what is most important is that you have funds that are free from risk, reduced or deferred taxation and the avoidance of probate. If you have changed jobs, or have IRAs, you may want to review those investments and compare them to the new opportunities that Sears Insurance would suggest to you. One of the companies that we represent and we are proud to be recognized as a top producer for is EMC National Life.
They offer tax-deferred fixed annuities that have many benefits for nearly any aged person. As we progress through our work years and look into our retirement planning, we need to reassess our risk allocations, leaning more conservative. At this point in our life, our goals should be reduced debt, increase the safety of our principle and if we can protect any type of tax liability, by all means, check that out.
It’s actually a very rewarding experience to sit down with an individual or a couple and watch the expression on their face change as the safety of their future becomes more apparent. Our consultations are free and I think you would be happy with the end results.
https://www.emcnationallife.com/Agents/Admin/Forms/EMK101_0914.PDF
https://www.emcnationallife.com/Agents/Admin/Forms/LB136_03_0116.PDF
https://www.emcnationallife.com/Agents/Admin/Forms/LB136_20_1215.PDF
As the health benefits and the price tags continually change from year to year as we proceed through the Affordable Care Act, it’s very important to educate the employees at your company. Sears Insurance does this through employee meetings, free of charge for their existing Clients. The employers are often unaware of the resources available to them and that’s why they rely on an independent agent to bring those resources and tools to not only employers, but also to their employees.
When a business owner entrusts me with the premium dollars and benefit choices, it truly affects not just the bottom line, but every employee, spouses and children alike. One of the ways that we can support your employees is to educate them on flexible spending accounts and health savings accounts. The general public has a very poor understanding of these tools.
As health care continues to change and evolve, we see that what we used to know as our old co-pays, for example $25 to see your doctor, are no longer available. What we’re seeing more of are higher deductibles and higher maximum out of pockets while the premiums continue to rise. So, how we can help fix that is work on the gap between dollar 1 and the maximum out of pocket. And ways to do that are to offer an HSA or an FSA.
HSA Brochure 1, HSA Brochure 2
There are tax advantages that are being overlooked, there are premium advantages and while these products have been available for some time and have been overlooked by the majority, these are becoming more and more the way to see healthcare today.
Please read through the explanation about how an HSA can be of help to you. I have attached a few links to help understand how an FSA or an HSA could benefit you and your employees. As I consult with you prior to your group renewal, I will be discussing these options with you for your consideration.
For people who are Medicare eligible, you would typically be advised to enroll in Medicare Part A and B, purchase your Medicare supplement and an Rx plan suitable for your needs. While this sounds easy, it can be very confusing, overwhelming and complex for the majority of people that I work with, so I’m going to try to make this a painless process.
This link, takes you to medicare.gov. You have three months prior to your birth month, your birth month and three months after your birth month (a 7-month window) to enroll in Medicare Part B. My recommendation is always to enroll at your first opportunity, three months prior to your birth month. This can be done online and in the convenience of your office or home.
When you receive your white card with the red and blue stripes at the top, known as your Medicare ID Card, your effective dates for Part A and for Part B should be your birth month. At that point, it is appropriate to call me and get your quotes for your Medicare supplement. If this is the route you choose to go, then I would have you complete an application and I would enroll you for a Medicare supplement coinciding with the effective date of your Medicare, well in advance so your transition is seamless. I would then provide you with a document referred to as Scope of Appointment Form. It is federally mandated that you sign and date this and return it to me concerning your Part D prescription drug insurance. When I receive your form, we then set an appointment exclusively for conversations and/or transactions pertaining to Part D. We cannot do your Medicare supplement and your part D in the same appointment per federal mandate.
After I receive your Scope of Appointment, I would use what is referred to as an Rx calculator which would illustrate for us the plan options and the bottom line out of pocket costs. We would then select the plan that is best suited to your drug list and enroll you for the same effective date as your Medicare and Medicare Supplement. Then you would transition either from the workplace or individual coverage into your Medicare very timely and without any lapse of coverage.
If you are not “aging into Medicare”, there are enrollment periods set up by the federal government that we must adhere to unless you have a special enrollment, this could mean moving from a different state, a retirement date, returning from the military. Please call me when you turn 64 ½ and we can set up a timeline of events so that everything falls into place without stress.
With this being the week before Christmas, I want to be sure to thank all of my Clients for their referrals, my business associates, my office manager, my website professional for everything you’ve done for me all year and wish you all the very merriest of Christmases and Happy New Year!
