Maybe you have recently lost your job, or just graduated from school. Maybe you are in between jobs, or waiting for your benefits to become available. Maybe your employer is no longer providing health insurance benefits for you and your family. No matter the reason, remaining uninsured is a risk to you and to your family.

Most people remain uninsured because they do not feel they can afford quality health insurance. With the many health insurance options available, from short term health insurance to high deductible health insurance plans in conjunction with Texas health savings accounts, there’s no reason to believe affordable health insurance is out of reach.

Now all you have to do is find the plan that provides the best coverage for the most affordable price. But who has time to read and to compare all the different plans and benefits of each of these health insurance companies? No one. Thankfully, Texas health insurance brokers like Custom Health Plans do the work for you.  They offer free rate comparisons and price quotes to help you streamline your search, and they will customize health plans to meet your needs at the best possible price.

So why wait? Protect yourself. Protect your family. Affordable Texas health insurance is not a myth. It’s a reality. Make it your reality today.

But in addition to those who are forced to find alternative health insurance, many people are simply choosing individual health insurance plans rather than enlisting in their employer-sponsored plans.  Here’s why:

Customization  &  Cost

Group health insurance offers a broad range of benefits intended to cover a wide variety of people. And to keep from discriminating against those with pre-existing conditions, the health insurance company providing the group benefits covers all employees, regardless of their health.  This creates extra costs for all employees, whether they need extensive care or not.  Because of this, group plans can be unnecessarily expensive for healthy individuals.

If you are a healthy individual on a group health insurance plan, you may be overpaying for health insurance and getting less desirable benefits. Consider opting for an individual Texas health insurance plan instead – one that’s customized so you only pay for the benefits you need and want.  You can receive free health insurance quotes from brokers like Custom Health Plans, who guide you through the process of setting up your new plan.  Their fee is paid by the Carrier you choose, so this service for all intensive purposes is free to you so why not utilize it.

Portability

With the fluctuation in the job market, group health benefits can be very inconsistent.  Being laid off leaves you without the benefits that you and your family need, and even changing jobs can render you uncovered for a period of time.  To combat this, many people choose individual health insurance plans, even if their employer offers benefits.  This way, consumers can rest assured that their family will be covered despite any changes in their employment status.  You own it once you are approved   it is usually a 12 month or 24 month guaranteed renewable policy which means that you cannot be canceled for any reason  except for non payment. Not even if you get cancer or diabetes.

Because money is tight, jobs remain uncertain and health care costs continue to increase, people everywhere are turning to individual Texas health insurance plans for customized , affordable and portable health coverage.

By connecting health care services with actual health care costs, health savings accounts are decreasing health care costs. Evidence supporting these claims continues to surface causing many to question why HSAs are not being considered as an option in the Obamacare health plan. Obama’s goal is to provide affordable health insurance to all people, which is something all Americans agree is needed. However, increasing taxes and putting our nation in more debt should not be the price paid in order to make health insurance more affordable and readily available to all citizens.

Also, Obamacare does not address the fundamental problem of rising health care costs. The reason health insurance is not affordable for a majority of Americans is due to the excessive health care costs and the overuse of services. When people do not understand the costs of services (because the health insurance company covers most of the costs), they tend to overuse services unintentionally. With the knowledge of the actual cost per service, the individual can be more responsible with how they use these services. For example, let’s say you go to a restaurant and you do not know the prices of the dishes available. Let’s also say you will only pay a flat fee no matter what you order. You are more likely to order the most expensive meal on the menu, whether you are hungry or not. This analogy can be applied to how flat rate fees per service can lead people to using more than what they actually need when visiting health care providers.

The Cato Institute’s Michael Tanner writes that for every health care dollar spent in the United States, just 13 cents is paid by the consumer. If a co-pay is all that is required for health care services (whether the full costs are covered by your health insurance or the government), the rest of the service fees must be paid by someone. If the health insurance companies and the government continue to incur the majority of the costs, then health insurance premiums will continue to rise to compensate for increasing health care costs and usage. If the government incurs the majority of the costs, then taxes will continue to rise to account for these increases. Therefore, allowing every American access to standardized health insurance will definitely not decrease health care costs. Instead, it will actually decrease health care quality, increase health care costs, and increase taxes!

Instead, the root of the problem should be treated first. Increasing customer responsibility by connecting health care cost with service will allow people to begin to use the services that are only needed, not expected. Once health care services are better understood and maintained, the costs of health insurance will decrease. Once health insurance premiums decrease, more Americans will be able to afford quality health insurance. It is not a quick fix, but it is a better option than our country continuing to plummet into financial ruin.

Evidence of this concept working has been reported in states such as Indiana. In a recent article by Indiana governor Mitch Daniels for the Wall Street Journal, 70% of the state’s 30,000 employees use the HSA option available to them. The state deposits $2,750 a year into an account controlled by the employee, who uses it to pay health care costs. The state of Indiana also pays the premium for the high deductible HSA-eligible health insurance plan. Money left over each year belongs to the employee. A study conducted on these employees’ use of health care services show that they do not skip needed services, such as routine physicals and mammograms. Daniels claims this program will save the state about $20 million this year.

Before we endorse a health care reform bill that could cost us billions of dollars without addressing the real health care problem, we should look at what IS working to decrease health care costs and aid Americans in getting the health care services they need.

It’s important to note that an HSA cannot be combined with just any high deductible health insurance plan. The IRS has set specific guidelines to determine if a high deductible plan is HSA-eligible. Because of these guidelines and the variations of state underwriting requirements, it’s helpful to contact a Texas health insurance broker to guide you through the process.

This is definitely not your traditional health insurance plan.  Individuals accustomed to HMO or PPO plans, with set co-pays and select health care providers, might find a health savings account to be a refreshing change.  With an HSA, consumers are accountable for their own health care spending and are empowered to make the decisions best suited to their health and budget.  Saving some money while taking back control of our own health care is something we could all use more of these days.

The Dallas Morning News

In Texas, the Department of Insurance does not routinely review health insurance premium increases unless a complaint is brought before them. Therefore, it’s argued that Obama’s proposal could protect many insured citizens from unnecessary and inflated health insurance premium costs.  However, each state differs in which health insurance carriers, plans, and benefits are available.  Paired with the fact that health insurance carriers are confined to only sell within state lines, how can the federal government adequately determine if a premium increase is unreasonable for the citizens of a particular state, much less regulate those that are deemed unreasonable?

Rather than spending more money on further regulation, how about some measures that would actually lower health insurance costs?  Measures like deregulating health insurance across state lines, so that market competition can naturally lower costs; or imposing tort reform to cut down on junk lawsuits, like we’ve done here in Texas; or increasing accessibility to health care, through more options like Texas health savings accounts and other consumer driven health plans that empower consumers to take control of their health care costs.

American health care reform cannot happen overnight, but until the right questions are asked, the wrong answers will continue to be proposed.

Short term health insurance is fairly inexpensive for healthy individuals, and you are still allowed the freedom to choose which doctor or hospital you prefer. Most short term health insurance plans offer a wide range of options, from very basic coverage to comprehensive coverage, usually with a moderately low deductible. These plans work like most individual Texas health insurance plans, covering doctor visits, hospital care, emergencies, surgery, lab work and more. And while they usually last from one to six months, most policies can be renewed for a total of 36 months.

There are many perks to obtaining short term health insurance. The application process is quick and easy, allowing most applicants to be covered within 24 hours. This quick turnaround also prevents the insured from having a gap in health insurance coverage, which is helpful when applying for future health insurance.

When life circumstances change, it is important to know what options are available when making decisions concerning your Texas health insurance. Short term health insurance might be the answer for you if you are:

Between jobs – If you’re between jobs, consider purchasing Short Term Medical. For about half the cost of COBRA, Short Term Medical offers next-day coverage to help you bridge the insurance gap.

Waiting for employer benefits – New employers often impose a waiting period before you’re eligible for health benefits. With Short Term Medical, you stay insured and can choose your own plan duration.

A temporary or seasonal employee – When your employment schedule is unpredictable, it’s difficult to maintain health coverage. Short Term Medical offers you prescription drug savings and flexible coverage options to suit your situation.

A new graduate – If you’ve just graduated, you’re probably no longer eligible for health insurance through a student plan or your parents’ plan. Short Term Medical is an affordable way to guard against unexpected medical bills until you secure permanent coverage.

HSAs were made available through the Medicare Prescription Drug, Improvement, and Modernization Act of 2003.  These tax-free savings accounts allow consumers to save and then apply money toward qualified medical and health expenses not covered by their health insurance deductible.

Anyone with a high deductible health insurance plan is eligible to open a health savings account in Texas.  Though one account holder is needed for initial setup, the HSA funds can be used for any family member covered under the high deductible insurance plan. The HSA tax deduction is equal to the amount of money that is deposited into your Texas health savings account, and the U.S. Treasury allows individuals to contribute money to their HSA accounts even if deductions are not itemized.

According to the Internal Revenue Service, the annual contribution limit on deductions for health savings accounts in 2010 is $3,050 per calendar year for an eligible individual with self-only coverage. The limit is $6,150 for family coverage. A high deductible health plan is defined as having an annual deductible of at least $1,200 for self-only coverage or $2,400 for family coverage, and annual out-of-pocket expenses (e.g., deductibles, co-payments, etc.) up to $5,950 for self-only coverage or $11,900 for family coverage.

According to Blue Cross Blue Shield of Texas, HSA insurance plan members spent eight percent less than traditional insurance clients.  Because HSA insurance plans are consumer-directed and managed, the individuals who subscribe to these plans are in control of how their money is spent.  Consumers with HSAs tend to take a more active role in their health care, since the money they’re saving and spending is their own.  Maximizing value can be achieved in health care only if the system is restructured to make the consumer the key decision maker.

First, they allow the doctor to save time and personnel on insurance paperwork and redirect resources to patient care, simultaneously passing savings on to the consumer. Second, they encourage a closer doctor-patient relationship, free of interference from third parties such as insurance companies or government programs. Most importantly, cash-only practices curtail expenditures by linking health care decisions and cost directly to consumers; after all, when the insurance company is paying for your checkup, who bothers to ask how much it costs?

Cash-only doctors complement and enhance consumer-driven health care plans (CDHPs) like health savings accounts (HSAs) and high deductible health insurance plans (HDHPs).  High deductible health plans offer lower premiums and provide coverage for major medical emergencies and catastrophic events.  Other medical costs, like routine checkups, are paid out of pocket.  Health savings accounts allow consumers to save money on a tax-free basis, similar to an IRA, and then apply their money to these out of pocket expenses with pre-tax dollars.  These options supplement the cash-only market and empower consumers to take control of their health care costs.

So why aren’t these practices more widespread?  Simply put, big government hinders these options through the federal tax code, which favors comprehensive, employer-provided coverage.  In reforming health care, Congress should not favor one type of health care over another.  Instead, patients should have the right to choose which health care delivery system works best for them.  As The Heritage Foundation’s Ed Haislmaier states:

Maximizing value can be achieved in health care only if the system is restructured to make the consumer the key decision maker. When individual consumers decide how the money is spent, either directly for medical care or indirectly through their health insurance choices, the incen­tives will be aligned throughout the system to gen­erate better value—in other words, to produce more for less.

Live Healthy, Be Healthy

Taking care of your health has multiple benefits.  Insurance companies usually offer lower monthly premiums to those who live healthier lives, and when you take care of your health, you spend less money on doctor visits and prescriptions.  A few simple activities, like eating healthy, exercising and not smoking can dramatically impact your health, and ultimately, your health care costs.

Shop Around

A qualified Texas health insurance broker can direct you to the leading Texas health insurance carriers and help you to compare different health insurance plans. Comparing coverage options and pricing allows you to find the most affordable health insurance plan that best fits your needs.

Choose a Higher Deductible

A deductible is the amount you are expected to pay toward doctor, hospital, and other medical bills.  Once your deductible is met, most plans cover 100 percent of costs up to a set amount, called a “Lifetime Benefit,” which is usually between three and five million dollars.  The major benefit of a high deductible health plan (HDHP) is that it’s paired with a lower monthly premium.  If you’re generally healthy and don’t require frequent doctor visits or prescriptions, a HDHP can be maintained with just a small payment each month, and it usually covers all of your preventive and wellness benefits too.

Another money-saving advantage of a HDHP is that it makes you eligible to open a health savings account, which allows you to save money on a tax-free basis, similar to an IRA.  This money is then used toward health care costs not already covered by your deductible. Any money left in the account at the end of the year can be rolled over year after year up to age 65 on a tax-deferred basis, saving you even more money.  It’s like a health care IRA on steroids.

Following these simple tips will allow you to save some money and take control of your health care costs – something we can all benefit from these days.

What is an FSA?

An FSA is an employer-sponsored benefit that allows you to set aside a predetermined amount of your income for medical expenses not covered by your health insurance policy. The money is removed from your paycheck “pre-tax,” thereby decreasing your taxable income and increasing your spendable income.

There are also some drawbacks to FSAs.  First, the beginning of the year is the only opportunity you have to enroll in an FSA, unless there is a significant change in family status. Second, the medical expenses that can be reimbursed through your FSA are determined by the IRS, so you must be familiar with the list of approved expenses before determining how much money you want withdrawn from your paycheck.  Finally, any unused money in your FSA at the end of the year is lost. It DOES NOT roll over; this is sometimes referred to as a “use-it-or-lose-it” plan.

There are many benefits to having an FSA, but much preparation must be done before using this tool to maintain your health care expenses.

What is an HSA?

An HSA is a tax advantage savings account that allows you to contribute and withdraw money for qualified medical expenses without being taxed.  Similar to an IRA, HSAs are investments, controlled by the owner (you), allowing you to grow your wealth while being taxed less and preparing for future medical expenses. Qualified medical expenses include doctor visits, prescriptions, dental appointments and even massages and health club memberships. Another advantage to having a Texas health savings account is that any money contributed to your account will roll over every year on a tax deferred basis, which allows your money to accumulate, unlike the “use-it-or-lose-it” FSA.

The only requirement to opening an HSA is to have a high deductible health insurance plan, which is a type of health plan that has a higher deductible than common health care plans and has a maximum out-of-pocket limit. These plans usually have lower monthly premiums, providing HSA owners another way of decreasing health care costs.

Since an HSA allows you to prepare for future medical expenses, decrease taxes, increase opportunities to earn wealth and pay smaller monthly health insurance premiums, it’s a great option for combating the rising cost of health care.