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Posts Tagged ‘Texas health insurance’

Employers May Drop Millions from Health Insurance Rolls

Friday, May 18th, 2012

texas health insuranceHere’s some startling news on the Texas health insurance front. A new poll that surveys some of America’s largest companies shows that the health care legislation passed in 2009 creates incentives for employers to drop workers from company insurance plans. This is because it’s better financially for companies to drop workers from those plans rather than to keep them and adhere to the new health law standards.

This is obviously in stark contrast to the lawmakers’ claims, as we were promised better health care and broader coverage, without the fear of losing our current plan. Employees who are dropped from their employer-subsidized plans could be shifted over to government-run exchanges. If this occurs, the companies in question would be fined $2,000 per employee, which may sound steep, but would actually save companies nearly $30 billion in 2014 alone.

James Capretta of the Ethics and Public Policy Center confirms this, noting that “the penalties for the employers who drop coverage are very low, and the subsidies for the workers in the exchanges are very high.”

However, some analysts believe that companies would be hesitant to drop health coverage, but if one company does it, their competitors might follow suit, creating a snowball effect. It makes sense. A company would be reluctant to be the first, as it looks bad to potential employees. But once it starts happening, others might feel pressured to cut costs in a similar fashion.

This means lots of workers will need to procure an individual health insurance plan or enroll in the federal health insurance exchanges. The exchanges don’t sound so bad, especially with generous government subsidies mitigating costs. But those subsidies will eventually fall back on taxpayers anyway, costing us money in the long run.

This is yet another example of how ObamaCare is infringing upon the rights and wallets of individuals. In this case, it’s restricting our access to our preferred health care plans and providers. This isn’t the first instance of the government trampling our rights, and sadly, it won’t be the last. But the most important thing to remember is to always remain covered; whether you enroll in a federal exchange, a short-term plan, a health savings account or something else, keep that coverage in place to protect yourself during these tumultuous times.

Protect Your Paycheck with Disability Income Insurance

Wednesday, May 2nd, 2012

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.

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

Saturday, October 29th, 2011

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.

Legislators Measure Texas Health Care

Thursday, February 17th, 2011

texas health insuranceThe 2011 edition of Texas on the Brink was released today. The study, which began in 2003 and is performed by the Texas Legislative Group, measures the state of health insurance in Texas, health care, education, quality of life and more. Unfortunately for Texas, we didn’t fare so well, particularly in regard to how many residents have Texas health insurance.

Below are some findings from the study, with 1st representing the highest percentage and 50th representing the lowest percentage.

  • Percent of population that’s uninsured – 1st
  • Percent of uninsured children – 1st
  • Percent of low income population covered by Medicaid – 49th
  • Percent of population with employer-based health insurance – 48th
  • State government health expenditures as percent of the gross state product – 43rd
  • Per capita state spending on mental health – 50th
  • Per capita state spending on Medicaid – 49th
  • Percent of population that is physically active – 36th
  • Health care expenditures per capita – 44th

Once again Texas ranks last in the number of its citizens who have health insurance. Last year’s United Health Foundation study also found Texas to rank last in health insurance rates. Some of this can be attributed to the economy. After all, health insurance can be costly. But what many people don’t realize is that not having health insurance can be significantly more expensive, as emergency medical care and unanticipated operations can leave consumers hundreds of thousands of dollars in debt.

Texas also ranks poorly in the number of residents with employer-provided health coverage. Even if your employer doesn’t offer coverage, there are still plenty of options in the private market. A Texas health insurance broker can walk you through your options, which include a range of individual Texas health insurance plans and family health insurance plans. Regardless of what you choose, being insured is always a good thing. It’s a sound investment, and one that ensures you and your family are protected, both medically and financially, should health issues arise.

Affordable Texas Health Insurance Comes to Small Employers

Friday, September 17th, 2010

affordable texas health insuranceSmall employers looking for affordable Texas health insurance may be in luck.  The Texas legislature recently established a statewide program designed to provide Texas health insurance programs for small business owners and their employees.  This comes at a time in which nearly six million Texans do not have health insurance, and many small employers don’t have the resources to provide employees with health benefits.

In fact, only 32 percent of our state’s small businesses offer Texas health insurance to employees, as opposed to 89 percent of our large employers. The program, called Healthy Texas, helps combat this issue by providing “eligible small employers with the option of purchasing an affordable benefit plan that is compliant with the benefit requirements of federal health insurance reform.”

According to the Insurance Journal, “eligible employers that purchase coverage for employees and their dependents through an approved participating private health plan can save, on average, up to one-third on premiums.”  That’s a huge boon to small businesses currently thwarted by a down economy and shaky federal health care legislation.

Healthy Texas does not provide a premium subsidy to small employers. Instead, it utilizes both public and private funds to address claims costs and to pay participating health insurers for costs that fall within a defined range. The program’s success hinges upon its ability to strategically target state dollars to where they are most needed and can do the most good – in this case, low income, uninsured employees of small businesses.

To enroll, employers can apply directly through participating health plans, Celtic Insurance Company and United Healthcare, or apply through a Texas health insurance broker.  Healthy Texas considers the following requirements when determining program eligibility:

  • - The employer must qualify as a small business with 2-50 employees
  • - An employer must not have provided group insurance 12 months prior to HealthyTexas application
  • - At least 30 percent of employees must receive annual wages at or below 300 percent of the federal poverty level
  • - The employer must pay at least 50 percent of the premium costs for employees
  • - At least 60 percent of eligible employees must elect to participate in the program

The Healthy Texas program provides a means for small businesses to offer affordable Texas health insurance to their employees and is a big step in our state’s quest to insure more residents.

ObamaCare Forces Texas Health Insurance Companies to Close

Friday, September 10th, 2010

Texas health insurance company closesAs the ObamaCare veil continues to be lifted, it’s further exposed as a cavalier, irresponsible piece of legislation wrecking havoc on Texas health insurance.  From its severely high costs to negative results like doctors dropping Medicaid and insurers being forced to close up shop, health care reform has already caused more pains than gains.

And these unfortunate consequences are hitting close to home.  According to the Dallas Morning News, “Grand Prairie-based National Health Insurance Co. said it could no longer offer individual accident and health insurance policies. It blamed its decision on the company’s inability to meet requirements of the health care overhaul signed into law this year.”

Starting January 1st, the law requires that health insurers meet a specific medical loss ratio, which is the percentage of an insurer’s premiums spent on medical services for its customers versus administrative costs.  The law views certain tasks—like liaising with doctors, protecting patient information and preventing insurance fraud—as administrative even though they significantly improve quality of health care and lower costs.  As a result, costs for insurers will rise, the quality of health care will fall, and quality Texas health insurance companies will struggle to stay afloat.

Jared Wolfe, executive director for the Texas Association of Health Plans, believes that “there are a number of plans who won’t be able to meet this requirement and will simply exit the market.”  Many health economists say that more small insurers like local National Health Insurance Co. may soon buckle under the weight of the law’s mandates.

The individual Texas health insurance market has higher administrative costs for insurers than the large group market, so as small Texas health insurance companies fight to stay in business, consumer options will be reduced.  ObamaCare was supposed to increase access to health care, not decrease it.  It’s just one more example of why the pains are not worth the gains.

Who’s Responsible for Messing with Texas Health Insurance?

Tuesday, August 24th, 2010

obamacare affects texas health insuranceLike the rest of the country, Texas health insurance is going through the ringer, facing austere regulations, threats to Medicaid and financial mandates passed down by the current administration.  While Texas has mostly opposed ObamaCare and the threat it poses to affordable Texas health insurance, it seems that now even the men and women who championed and passed the legislation are starting to back away from its spotlight.

In March, President Obama told House Democrats that he was confident that passing health care reform would be a smart political move.  But now, with the majority of Americans actually opposing the reforms, Democrats are hard pressed to find a sympathetic ear when extolling the virtues of ObamaCare. And many are even claiming now that the bill has taken a turn away from the legislation they initially passed.

In an attempt to smooth things over with voters prior to mid-term elections, Democrats are taking a new stance on their messaging surrounding ObamaCare.  Families USA, a liberal health care advocacy organization, hosted a conference call with Democrats and other allies, urging them to communicate the benefits of health care reform via personal stories, rather than facts and statistics.

The WSJ reports that Families USA advised democrats to “Keep claims small and credible; don’t overpromise or spin what the law delivers…’to don’t’ items include offering a long list of benefits or claims that the law will reduce costs and the deficit, even as voters are concerned about rising health care costs and believe that costs will continue to rise.”

That’s a far cry from last year and earlier this year when the administration rattled off facts and figures explaining how ObamaCare would insure millions more Americans while simultaneously lowering costs.  As more and more people reject this irresponsible legislation, the administration is forced to focus on human interest stories as a last ditch effort to swing some favor their way.  Human interest stories are nice, but they don’t lower costs, incentivize businesses to insure their employees or stimulate economic growth.

So now, like the rest of the country, Texans will witness the ObamaCare juggernaut steamroll their Texas health insurance, as Democrats attempt to remove themselves from the scene of the crime.

Texas Doctors Might Drop Medicaid

Monday, July 12th, 2010

texas medicaidMedicaid patients aren’t popular among doctors, who receive state-subsidized fees significantly lower than traditional market value for their services.  And with provider fees being trimmed another one percent on September 1st, the amount of doctors accepting Medicaid is expected to drop, damaging the state’s delivery of health care to the poor who rely on this form of Texas health insurance.

According to the Dallas Morning News:

The 1 percent trim to provider fees that starts Sept. 1 sounds modest. But doctors, insurance industry officials and health care experts widely see it as the first of many hits coming to doctors’ wallets as Texas’ fiscal woes deepen.  State leaders’ instructions for agencies to identify additional 10 percent budget cuts in the next two-year budget cycle mean more fee cuts may come next summer.

Industry experts believe that further budget reductions could drive doctors from the state and result in more patients seeking emergency room care.  This would be an inauspicious beginning to federal health care reform, which, starting in 2014 will create huge new demands for care by putting more poor adults and children on Medicaid.  This bit of legislation is conservatively estimated to add 1.5 million Texans to Medicaid by 2015.  The number currently stands at about three million.

Expanding the rolls of Medicaid while reducing doctor reimbursements simply won’t work, as fewer doctors will accept these patients.  At the same time, health care reform will expand Texas health insurance rosters in general without expanding the amount of medical professionals to service the newly insured.

Medicaid is a great resource for people who can’t afford traditional Texas health insurance plans, but without the necessary medical network to support these patients, expansion may overburden our already weakened state.