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Protect Your Paycheck with Disability Income Insurance

May 2nd, 2012 by Richard Monello

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Posted in Disability Income Insurance, Texas health insurance

disability income insuranceHere’s a scary stat: the Social Security Administration reports that “a 20-year-old worker has about a three in 10 chance of suffering a disability before reaching retirement age.” And as you get older, those chances increase. Injuries can force workers into early retirement, whether or not they’ve got the savings to make it work. To protect yourself should the worst occur, workers should consider obtaining disability income insurance.

Disability income insurance provides income for workers who’ve suffered accident and illness related disabilities. Preparing to have a paycheck in place even when you can’t work keeps you and your family financially sound while you recover.

People often think that disability income insurance is only necessary for people with dangerous jobs, but most disability cases aren’t even work related. Illnesses are more likely to cause disabilities than accidents. And 70 percent of workers can’t cover their normal living expenses for more than six months without their income or disability insurance in place.

Paul Gada of the Allsup Disability Life Planning Center has a few tips for workers to consider –

1. If you are diagnosed with a chronic condition that might require you to stop working, start planning for that day as soon as possible.

2. In addition to collecting disability income insurance, one should minimize financial losses by developing a financial plan, establishing a budget and prioritizing expenses.

3. Pursue income sources. People with long-term disability coverage generally begin receiving benefits three to six months after the onset of a disability.

4. Don’t let health coverage lapse. Consider COBRA or buying individual health insurance on the private market.

If you’re interested in purchasing disability income insurance, Custom Health Plans offers Disability Income Protector for accident related disabilities and Disability Income Protector Plus for accident and illness related disabilities. Both plans allow for monthly payments from $500 to $5,000 and – if needed – can continue for one, two or five years. That money can ensure your family is taken care of while you recover from your injury or illness.

Want to learn more? Just give us a call or click here to get a free quote.

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Are You Paying too Much for Health Insurance?

March 8th, 2012 by Richard Monello

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Posted in Individual Health Insurance, Texas health insurance

This week, there have been a couple interesting news items discussing why people buy insurance for relatively low cost, predictable health expenditures. Examples of such expenditures include routine prescription drugs, regular physician visits and contraceptives. Comprehensive – and usually expensive – health plans may cover these costs, but at what cost to you? Friend of the program, John Goodman, believes that buying insurance for items you could easily afford to pay out of pocket is, simply put, throwing money away.

There are a variety of options for minimizing your health insurance costs. In this case, we’re mostly talking about individual health insurance plans, rather than employer-subsidized plans. For the average consumer, the most affordable health insurance option usually includes a higher deductible with a low monthly premium. In such an instance, the insured pays out-of-pocket for routine health expenses, like prescription drugs and doctor visits. If you’re fairly healthy, then your out-of-pocket expenses likely won’t equal the extra amount you’d pay in premiums if you had a low deductible plan. John Goodman provides this example –

affordable health insurance

In the first example, the family of four assumes an extra $4,000 dollars of risk by choosing the $5,000 deductible versus the $1,000 deductible. But over the course of one year, that same family saves nearly $8,000 in monthly premiums. Just by doing some simple math, it’s obvious that our fictitious family would be better off with the higher deductible. Even if they use their entire deductible, they still save a few thousand dollars over the course of one year.

Some might argue that people with individual health insurance aren’t privy to cheaper, negotiated rates for health care. But that’s typically untrue since when you pay out-of-pocket, you’re still paying the rates your health insurance carrier has negotiated. The rates that are negotiated by your insurance company and your health care provider often save policyholders between 50 and 80 percent on health care costs. Doctor visits, for example, average around $120 without health insurance, but may ring in at $60 or less with insurance. And lab work can cost as much as $300 or $400 without insurance, while it typically costs just $120 to $150 with insurance.

Obviously no single plan is perfect for everyone, and savings for individuals may be less drastic than savings for families. But the next time you shop for health insurance, consider a high deductible health plan. More often than not, the money you save on premiums makes up for the extra out-of-pocket costs.

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ObamaCare Tramples on Religious Rights

February 10th, 2012 by Richard Monello

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Posted in Health Insurance News

ObamaCareIf you’ve been watching the news lately, you’ve probably heard that the Health and Human Services Department enacted a measure requiring nearly all insurance plans to cover contraceptive and sterilization methods, including the morning-after pill.

There are certain exceptions for religious groups, but in this case, the government outlined what constitutes a religious group. According to The Wall Street Journal, “the HHS chose to draw the rule’s conscience exceptions for ‘religious employers’ so narrowly that they will not be extended to religious charities, universities, schools, hospitals, soup kitchens, homeless shelters and other institutions that oppose contraception as a matter of religious belief.”

For most, this isn’t a birth control issue. It’s an issue of the government overstepping its bounds and placing mandates on private organizations – something we’ve become too accustomed to under Obama’s presidency. Most health insurance companies and employers already offer coverage for contraceptives and birth control pills. They do this of their own volition. But some organizations, including certain religious groups and employers, choose not to cover birth control. As private organizations, this is their right and is covered under the First Amendment. You know – the most important amendment to our nation’s Constitution.

The over-arching reach of the Affordable Care Act has already instated compulsory coverage mandates on individuals and profit limits on health insurance companies. The abuse of power and infringement on personal liberties is a slippery slope. Where will it end? The WSJ sums up its thoughts with this –

“When politics determines who can or should receive what benefits, and who pays what for it, government will use its force to dictate the outcomes that it wants—either for reasons of cost, or to promote its values, which in this case means that “women’s health” trumps religious conscience… Religious liberty won’t be protected from the entitlement state until ObamaCare is repealed.”

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Federal Government Denies Texas Health Insurance Waiver

February 1st, 2012 by Richard Monello

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Posted in Health Insurance News, Texas health insurance

affordable texas health insuranceHere’s some news on the Texas health insurance front. Texas had applied for a waiver that would exclude it from the federal government’s law that imposes limits on overhead spending by health insurers. The law in question applies to the Medical Loss Ratio and was instated as part of ObamaCare.

Basically, the federal law mandates that health insurance companies “must spend a minimum of 80 percent of their revenue on payments for policyholders’ health care or improvement to their health coverage plans.” This might sound okay on the surface – more money going toward individual’s health care, and less money going toward executive salaries and overhead. But in reality, “overhead” also includes necessary and important items like employee training, education and liaising with doctor’s to better understand issues related to health. So by mandating an 80/20 medical loss ratio, the government is effectually limiting a health insurance carrier’s ability to perform actions that positively affect not only the company, but the consumer.

The consequence for spending more than 20 percent on such costs is a requirement to provide customers with rebates beginning in 2012. Texas was denied its waiver request because, according to officials from the U.S. Department of Health and Human Services, the state was unable to “prove that there would be destabilization of their insurance marketplace if it complied with this new regulation.”

As a result, it’s possible that Texas health insurance companies will be forced to pay out rebates worth $476 million to policyholders over the next three years.

Again, this sounds positive for consumers. But we’re not convinced that federal mandates are in the long term best interest of the people. By limiting health insurance carriers’ overhead costs, we can expect to see good programs like education and privacy protection reduced, since the law kills a carrier’s incentive to invest in such programs. The short sighted law requires health insurance companies to make business decisions based on federal regulations, rather than what’s best for consumers.

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Supreme Court to Debate Health Care Law

November 15th, 2011 by Richard Monello

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Posted in Health Insurance News, Texas health insurance

supreme court to hear health care reform disputeYesterday the nation’s highest court announced that it would hear challenges to the health care legislation that’s disrupted health insurance in Texas and across the country. After nearly two years of protests and complaints, this marks the most important episode in the legal battle against ObamaCare.

The primary issue to be disputed is whether the government has the power to require Americans to purchase health insurance by 2014 and to penalize those who don’t comply. Many pundits have noted that such an act is unconstitutional and steps outside the limits of regulating interstate commerce. But proponents of the legislation say that mandatory health insurance is the only way to implement coverage for the 30 million uncovered Americans.

According to USA Today, a group of 26 states, along with the National Federation of Independent Business and individual challengers, say that “if the law stands, it will mean new burdens for states and businesses.” They urged the justices to resolve the dispute quickly because of uncertainty about future business costs.

On the other side of the argument, the current administration stressed the law’s benefits, “including that more young Americans now have health insurance and that women can get mammograms and preventive services without out-of-pocket expenses.”

Earlier this year, a federal judge in Florida ruled the law unconstitutional, and four subsequent appeals have varied on their decisions. Two declared it constitutional and one found it unconstitutional, while another said that no challenge could be brought until a person was forced to pay the tax penalty.

Next year’s Supreme Court decision, which would supplant prior court findings, is likely to be handed down in late June, right before the 2012 Republican and Democratic conventions. Expect lots of posturing on both sides leading up to the hearings. In the meantime, don’t wait around to see what happens. Consumers will need affordable health insurance regardless of the decision. But if you do take the wait-and-see approach, we at least recommend a short-term health insurance plan or a high deductible plan with a low monthly premium so you’re covered should anything happen.

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Policyholders Weighing Texas Health Insurance Options in an Uncertain Market

November 2nd, 2011 by Richard Monello

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Posted in Health Insurance News, Texas health insurance, Texas health insurance broker

texas health insurance plansAs we get deeper into the ramifications of health care reform, we’ve noticed more and more insurance companies pulling out of the market. We noted last week that American Enterprise Group, parent company to World Insurance and American Republic, closed its individual major medical insurance business. This is just the latest instance in which insurance companies can’t maintain their businesses in the wake of ObamaCare. And while the closing of businesses is never a good thing, the real consequence is that thousands of consumers find themselves without health insurance.

One option to quickly regain coverage is to join your spouse’s employer plan, if possible. However, that alternative seems to be becoming less popular. These days, we’re fielding lots of calls from people whose employer plan rates have skyrocketed for both individual and family health insurance. Group insurers are facing higher costs in attempts to meet new health insurance regulations, and these costs are passed along to the customer. Because of this, individual health insurance plans are becoming attractive options for replacing costly employer plans.

After losing their insurance, most people jump on the Internet to research their options. Of course, given all the providers, plans and prices, this typically leads to confusion and frustration. Since there’s no need to tackle it alone, we always recommend that people work with a local health insurance broker who represents multiple insurance carriers. A broker can help you navigate your options and steer you toward an affordable health insurance plan that’s right for you and your family.

As a Texas health insurance broker, one of the first questions we get asked is, “What’s your fee?” The thing is, reputable brokers like Custom Health Plans have no fee. We are compensated by the insurance companies, which means we can offer guidance and advice and set you up with a new plan without charging you a cent. And since we represent multiple carriers, we’re not beholden to anyone. We’re on your side.

Plus, if you have questions about your plan or coverage options, we’re your liaison. Rather than calling an 800 number, listening to a hundred automated prompts and finally dealing with someone who doesn’t know you, your history or your health needs, you can call us. We’ll deal with the insurance companies; and again, there’s no fee for our services. And if you’re worried about rates, rest assured because health insurance rates are state regulated. This means that the quote you get from a broker is the same as the quote you’d get straight from the insurance carrier for an equal plan. But for that rate, you’re also getting the broker’s guidance, expertise and customer service – three things you can rarely expect to receive from a big insurance company.

As evidenced by business closings and daunting details in nearly every news report, ObamaCare has caused much uncertainty in the market. Even though most changes won’t go into effect until 2014 – and there’s a possibility of repeal – consumers should do their best to stay prepared. A lapse in coverage can be dangerous for you and your family, so we always urge consumers to maintain coverage in some capacity.

And remember, if you want help finding a plan or even just want some answers to your questions, we’re here to help. For fast, free quotes or assistance, visit www.customhealthplans.com or call 877-749-2241.

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World Insurance and American Republic Exit Market; Customers Left Scrambling for Texas Health Insurance

October 29th, 2011 by Richard Monello

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Posted in Health Insurance News, Individual Health Insurance

american enterprise group closes - texas health insurance plansObamaCare has struck again, and the latest victim is American Enterprise Group – parent company of World Insurance Company and American Republic Insurance Company. American Enterprise announced that it’s closing its individual major medical insurance business, which provides health insurance in Texas and across the country to approximately 35,000 policyholders. The decision was based on the company’s inability to meet regulatory changes imposed by the Patient Protection and Affordable Care Act.

“It’s a fairly predictable consequence of the regulation,” said Michael Abbott, president and CEO of American Enterprise Group. “The regulatory environment’s getting really complicated.” One specific stressor is the legislation’s impact on medical loss ratios, which mandate that insurers must spend at least 80 percent of premiums on medical care. Given the intensive time and high cost of administering health plans, such mandates can kill company’s operating costs and profits, driving them out of business.

In an attempt to keep its customer base insured, American Enterprise has negotiated an arrangement with Celtic Insurance Company, who will offer guaranteed-issue policies to American Enterprise customers. This is one route for consumers to take, but it allows little choice and personalization of policies. It pushes people into a plan rather than allowing them to choose one that’s best for their specific health needs and budget.

Consumers affected by the closing of American Enterprise’s individual insurance business are encouraged to explore their options. Custom Health Plans offers a variety of individual health insurance plans and family health insurance plans that can be tailored to fit our clients’ needs. Losing your health insurance can be very stressful, but we can help consumers navigate through the confusion.

Give us a call to discuss your options – (469) 361-4032

And stay tuned next week as we detail several alternative options to American Enterprise Group for finding an affordable health insurance plan that’s right for you.

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Rising Health Insurance Costs Spoil Obama’s Claims

September 28th, 2011 by Richard Monello

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Posted in Health Insurance News

obamacare and health insuranceFor months prior to the passing of health care reform, and almost every day since, we’ve heard claims from the Obama administration that the legislation would lower costs and provide affordable health insurance for all. But with each claim, more and more evidence has surfaced showing that the opposite is true. First it was just projections and theory, but 18 months after the bill was passed, actual numbers are rolling in that deal a serious strike to Obama’s claims.

According to The Financial Times, a survey of American employers shows that health insurance costs have significantly increased this year over last year. One figure from the Kaiser Family Foundation shows that family health insurance premiums in 2011 jumped nine percent from a year ago. “This year’s 9 percent increase in premiums is especially painful for workers and employers struggling through a weak recovery,” said Drew Altman, Kaiser’s chief executive.

One reason for the increase in family premiums could be the new law allowing children to remain on their parents’ plans until age 26, which can create additional costs. But more than that, cost-cutting measures included in the law were exaggerated, their benefits were inflated and their implementation has been slow.

Critics note that the health reforms are too myopic and should focus on all the factors that increase health insurance costs. Karen Ignagni, chief executive of America’s Health Insurance Plans, lists premium-raising reasons like “soaring prices for medical services, changes in the covered population that has resulted in an older and sicker risk pool, and new benefit and coverage mandates that add to the cost of insurance.”

The Obama administration offered a rebuttal of the study, arguing that premiums were set last year when insurers anticipated higher medical costs and that premium prices would decline as more provisions in the law were rolled out. But people are hurting now, and the health law isn’t helping. In a time when money and jobs are scarce, lowered health care costs would be a boon to many Americans. And as the numbers show, ObamaCare has not followed through on its claims.

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