Posted on Fri, Apr 10, 2009
The most important thing most employers want to be able to offer to their employees is an employee benefit plan. Through these plans the employer can rest assured that his employees are well taken care. It also helps retain current employees since they are more likely to stay to keep the great benefits. Many people will take a lower paying job if the medical insurance plan is worth the lower pay.
Having affordable health coverage is one of the first things people ask about when they start a new job and for many, it can be the reason they accept a position with one company over another. Being able to offer comprehensive, and inexpensive, health care for your employees is a must have in the current economic situation.
Options Are The Key
For an employer group health plan to be truly effective and offer the most flexibility and option to your employees, having a number of plans to choose from is wise. Many health organizations will offer different types of medical insurance plans to fit the budget as well as the medical needs of a person or family. They are broken down into three normal categories:
Part-Time or Hourly Employees
This type of plan is created to offer general and limited coverage options for essential services. They may also offer discounts on certain products or procedures. This type of medical insurance is good for non-salaried employees as they generally take less money out of each paycheck while still offering substantial services.
Full Time Employees
This plan is the more traditional or value focused plan for permanent employees who may or may not be on a salaried basis. They offer affordable, more comprehensive plans, which can be specially tailored to the employer’s desires. The benefits packages can be customized as well and flexible spending accounts are offered to help offset unexpected and costly medical procedures.
Low Cost – High Deductible Plans
This plan is designed for employees who are more engaged in their health care needs. They normally feature a lower cost per month with a higher deductible. Normally people who don’t go to the doctor often aside from normal check-ups prefer this type of plan. In this program, health care savings accounts are normally offered as a way to put money away in case an expensive procedure is needed.
There are also other options for employer group health plans, which may include any of the following and normally these options are added at additional expense to the employee:
* Prescriptions – Including pharmacy costs.
* Mental Health – Dealing with psychiatrists and other mental health institutions.
* Dental – This includes normal checks ups to dental surgery. They normally don’t cover much for cosmetic options.
* Vision – Normal checkups, discounts on glasses and contact lenses.
* Alternative Health Care – Such as chiropractic treatments.
Employers normally help offset the cost of health care by contributing a percentage of the cost for each employee so, finding an employer group health plan that is affordable as well as comprehensive is important. Employer health plans can mean the difference between retaining valuable employees and losing them to someone with better benefits.
Posted on Wed, Apr 01, 2009
Facing severely decreased household income after a job loss, unemployed workers risk further financial distress by dropping their health insurance. Health insurance experts warn against making this budget cut, explaining that good medical insurance protects a family, especially if major illness or injury occurs. Struggling families can find affordable health coverage that offer excellent coverage.
Finding the best health insurance plans is a process. The initial step is to learn about the options that are out there for affordable medical plans. By taking the time to investigate how plans are different, by doing a health insurance comparison, consumers can learn which one best fits their needs. Sometimes by giving up certain control over healthcare choices, they can save money on premiums and overall healthcare costs. An HMO is a good example. There is typically a restriction on which doctors and facilities the insured can use, but the deductibles and co-pays on this type of policy are much lower than other policies like PPOs. This means that often-healthcare costs are lower overall in the long run – especially for families that make frequent visits to the doctor.
For many people, a more basic medical insurance plan is sufficient. In many cases, a comprehensive insurance plan represents spending more money for little true added benefit. Experts also recommend cutting dental and vision coverage if they are not absolutely necessary. Raising the deductible can be a sound move, providing the insured has a cash reserve. Higher coinsurance percentages will also mean taking on more of the risk, therefore premiums will be lower.
“Finding affordable family health insurance, even in a tight economy, can definitely be done. It does however; require shopping around and comparing quotes, as well as time researching policies prior to getting a quote and researching companies after the quote,” said Tom Carolan, Director of Client Services with BestHealthcareRates.com. “With knowledge and competitive quotes on your side, you can be sure of finding an affordable medical insurance policy that perfectly fits your needs.”
Posted on Tue, Mar 31, 2009
Employee Benefit Plans And Group Health Insurance Plans:
Small businesses desperately looking for ways to reduce operating costs are canceling their employer group health plans at a rate not seen in more than twenty years, creating a spike in individual and family health insurance enrollments. As the nation is engaged in overall health care reform, a focus on making sure small businesses are able to receive affordable health coverage is being called a top priority at a joint press conference with the National Federation of Independent Business and (NFIB) and America’s Health Insurance Plans (AHIP).
On the accessibility of affordable medical insurance coverage, Dan Danner, the CEO and president of the NFIB, stated his thoughts on the importance of this matter: “We must work together to pursue creative, private market solutions to what has become an unsustainable problem for small businesses – increasing small group health insurance costs.” He continued by adding, “It is imperative that insurance market reform – specifically in the individual health and small group health insurance markets – leads to greater access to larger pools, increased portability and competitive choices.”
The AHIP conducted a nationwide tour of the United States to get opinions and stories directly from the American people in regards to their experiences with health care institutions. The people with whom they talked to were also asked for their ideas for health care reform. During their conference the AHIIP released their findings to the joint committee.
In 2008:
· Small group health insurance premiums averaged $913 per month for family medical plans and $346 for individual medical coverage.
· Health insurance premiums ranged from as low as $198 a month in Washington to $504 a month in Alaska.
· Companies with more employees generally paid less than companies with fewer employees.
· Forty-one percent of businesses had an HMO plan, 50% had a PPO and only 7% were enrolled in heath savings plans in 2008.
AHIP released a statement highlighting the specific needs and obstacles faced by small businesses, calling policymakers’ attention to difficulties faced by small businesses. The organization recently launched the “Campaign for an American Solution”, a new national grassroots and educational initiative to build support for workable health care reform based on core principles shared by the American people: coverage, affordability, quality, value, choice and portability.
In a letter to key Senators last week, AHIP and the Blue Cross and Blue Shield Association offered to curb its practice of charging higher premiums to people with a history of medical problems. The offer from AHIP and the Blue Cross and Blue Shield Association is a potentially significant shift in the debate over overhauling the nation’s health care system to rein in costs and cover an estimated 48 million uninsured people. In the letter, the two insurance industry groups said their members are willing to “phase out the practice of varying premiums based on health status in the individual and family health insurance markets” if all Americans are required to get health insurance coverage.
“The offer here is to transition away from risk rating, which is one of the things that makes life hell for real people,” said health economist Len Nichols of the New America Foundation public policy center. “They have never in their history offered to give up risk rating.”
“This letter demonstrates that insurance companies are open to major insurance reform and are even willing to accept broad consumer protections,” said Sen. Jeff Bingaman, D-N.M., a moderate who could help bridge differences on a health care overhaul. “It represents a major shift from where the industry was in the 1990s during the last major health care debate.”
AHIP has published its proposal for health care reform to make medical insurance affordable, and they state: The U.S. could reduce total health care spending and improve the quality of patient care if the plan proposed today by America’s Health Insurance Plans (AHIP) was implemented. PricewaterhouseCoopers reviewed AHIP’s proposals and estimates, and concluded that if these proposals are fully implemented, the nation’s total health care expenditures could be $145 billion lower than currently projected by the year 2015.
“Insurance companies offering individual medical coverage cannot hire and train new employees fast enough to keep up with the recent spike in private health insurance enrollments”, said Tom Carolan, Director of Client Services for BestHealthcareRates.com, a health insurance information website based in Arroyo Grande, California. Carolan continued, “the plight of the individual medical coverage market is the focus of much media attention, but it is vitally important to economic recovery that small businesses get help”.
Posted on Thu, Mar 26, 2009
Among all the groups possible, small business is one of the hardest hit in the current economic situation and the most vulnerable when it comes to finding affordable medical insurance coverage for their employees. Despite the many things we hear every day about the economy and health care reform, many small businesses do want to provide their people with coverage.
When a small business is looking for affordable group health plans there are a few things they know to look for in their prospects:
- Low Premiums – The less they have to pay for it the better.
- Affordable Medical Coverage Options – The more options the better.
- Flexibility – Giving the employees choices between different types of affordable coverage plans to fit their particular needs and budget.
- Consistency – Fees that don’t increase at any time.
One of the biggest complaints from most small businesses is the fear their rates will go up at any time and without any real warning. Because of the continual rising cost of medical treatment, finding consistently affordable health care coverage is becoming harder and harder to manage. Changing plans year to year, to find lower rates, is not an option for many of the owners.
When asked, a large percentage, almost 75%, of small business owners said they are more than willing to help offset the monthly premium costs for their employees. Some employers even stated they would be willing to raise their employee’s payroll by 4 to 7 percent to help with the rising costs of health care coverage.
The Government’s Role
Many small business owners, 75% of them, do support the government taking a bigger role in the reform of the health care system. Citing specific needs for more oversight and regulation of the medical industry as well as the health insurance industry to ensure access to quality and affordable health coverage for everyone.
There is also a call going out for a quality public alternative to private health care coverage. Because small business is so very vital to the survival of the economy, their cries and calls for change are being heard more now then ever before. Small business owners want affordable health care coverage, they are willing to contribute to make it happen and they want it now.
Small Business – The Lifeblood of the Nation
Small business plays a paramount role in the life of the nation’s economy by providing jobs and creating income. A number of factors are combining now to make the survival of these businesses harder and harder each and every day. The grim fact is simple, without some change or options made available to them; the future is bleak for small business owners.
Caught between a rock and a hard place is a good way to sum of the current plight of small businesses. Between the recession and rising health care costs, the small business owner is being squeezed out of existence. This is why it is so important to ensure the availability of affordable group health care plans for all small business owners.
Small businesses deserve affordable health coverage for the hard working employees they employ and themselves because everyone has a right to quality health care.
Posted on Thu, Jan 22, 2009
Most people have no idea what COBRA means. Congress enacted the Consolidated Omnibus Budget Reconciliation Act or COBRA to protect people in the event that they face the loss of health insurance coverage when changing jobs, after the death of the eligible employee, after divorce, or some other life altering event. COBRA is not health insurance. It is simply a law.
Once a person becomes eligible under COBRA, they have 60 days to make a decision about whether they want to continue coverage or not. If they decide they want coverage, COBRA allows them to continue coverage under their former employer group health insurance plan for up to 18 months. Premiums can be as much as three times the amount they paid while employed because the former employee is now responsible for 102% of the premium cost. Most of the time, it is prohibitively expensive. Maybe that’s why only 20% of eligible people elect to continue their health insurance benefits.
Fortunately, there are alternatives that can save people money. Health insurance agents have many different options they can present to people seeking health insurance. They are licensed professionals who are educated and experienced in dealing with healthcare insurance questions on a daily basis.
Here are just a few options that are available:
· Aetna is one of the largest insurance companies in the United States. They offer health insurance coverage in many different states. Aetna has group plans customized for the differing needs of the employers that buy group health insurance through the company. The cost and plans vary significantly depending on individual state laws and business needs. Aetna does business in the private sector as well.
· Blue Cross and Blue Shield are two names that are widely recognized around the United States. They offer health insurance to both companies and individuals. Because they are nonprofit companies, the rates are usually much more competitive than those offered by other companies.
· Short-term health insurance can be a very viable alternative for those who are in between jobs. Often, people are without insurance for only a brief period of time. Once they get a new job, they will be eligible to enroll in the group health care plan offered by their new employer. Short-term health care insurance is sold by many different companies and can be purchased by individuals through an independent health insurance agent. Coverage on these plans is usually very affordable, but does have its limititations.
Obviously, people need to seek the services of a professional licensed health insurance agent that does business in their state. They can provide free quotes and valuable information to help people make the right health care decisions relevant to their own unique situations.
Posted on Thu, Jan 22, 2009
People who have lost their jobs for any reason may be concerned about finding COBRA alternatives. The COBRA legislation was set up by Congress to provide protection for people who have health insurance provided by their employers. The Consolidated Omnibus Budget Reconciliation Act or COBRA was created to give people the option of continuing with insurance through the employer’s group plan for up to 18 months after termination of employment. In other words, if you lose your job for any reason you can elect to pay to keep the same insurance for up to 18 months.
It all sounds good in theory but there are a few concerns people face when considering using COBRA:
· COBRA is expensive. People have to pay about $600-$800 for individual health insurance through this plan. Families can expect a bill of at least $1300. Most people are unpleasantly surprised by the high dollar amount they are expected to pay for continuation of their health care coverage.
· Why is COBRA so expensive? While the person is working, the employer likely paid the majority of the health insurance premium. That was part of the employee benefits package. Once someone no longer works for the employer, the premium burden falls to the former employee because the employer is not required to pay for health insurance benefits for people who do not work for them.
· Unemployment compensation does not pay enough to cover COBRA. Affordability is important for people who have been laid off or lost their jobs. Affording a high health insurance premium is difficult for someone who lives on unemployment compensation. Most people who use their unemployment benefits only receive a maximum of $1300 each month. It does not make sense to spend almost all of that money to provide health insurance rather than food or living expenses.
· The government allows 60 days for someone to make the decision about whether or not to choose COBRA benefits or the alternative. Any person who has recently lost a job may not feel emotionally prepared to deal with finding affordable health coverage. Getting a health insurance comparison from a qualified insurance agent will equip a person to make a judgment about healthcare options.
The need for family medical insurance does not end when the job does. Changing jobs causes a lot of stress. Living without a job creates higher stress levels. High insurance premiums cause even more stress. Fortunately, COBRA alternatives do exist that can save money. A qualified private health insurance agent is the best person to consult for questions about health insurance.
Posted on Thu, Jan 22, 2009
COBRA alternatives are necessary because the program costs more than most people can afford. This law exists to provide continued health coverage after an employee leaves a job. Coverage is only intended to be temporary. When a person is faced with the choice between purchasing private medical insurance and continuing with group health care insurance through COBRA, they must act quickly because they have a 60 day window to enroll in the COBRA plan. COBRA is the acronym that is short for the Consolidated Omnibus Budget Reconciliation Act. This law protects people by allowing the individuals that are eligible to continue their group health care plan for up to 18 months.
Eligible people have a limited time to make their decision about whether to proceed with the plan under COBRA or to instead choose a plan offered through an independent health insurance agent. After 60 days, the person is no longer eligible to use the benefits protected by COBRA.
Here are the advantages of using the COBRA plan:
· Coverage is guaranteed for up to 18 months as long as premiums are paid on time without interruption. There is no guarantee that everyone can find coverage in the private sector. COBRA allows the covered person to continue the policy they had while working for their former employer without interruption. This removes any worry about spending time looking for an alternative to COBRA.
· Group health plans usually have a lot of bells and whistles such as low deductibles, high dollar coverage, and a long list of providers and conditions that are covered. Sometimes it is difficult to find similar choices with private health insurance.
· Pre-existing conditions are often excluded for at least 12 months on private health insurance plans. The length of time the exclusion continues depends entirely on the company. A person covered through their former employer’s group health insurance plan does not have to worry about pre-existing conditions, at least while the coverage continues.
Disadvantages of continuing with the plan through COBRA:
· If a person misses a payment, coverage can be canceled. Once the policy is canceled, it cannot be reinstated. COBRA law requires the insurance company to send notices of nonpayment for cancellation; however, it is easy for a person to miss the notice, leading to an increased likelihood that the policy will be canceled.
· Premiums on a group health care plan are very high in comparison to private plans. The law requires that the covered person pays 100% plus a 2% penalty of all premiums. People often find that their premiums through COBRA are up to three times higher than private health insurance plans.
· COBRA is a temporary fix to a health insurance problem. The very fact that coverage is temporary can be a problem if the covered person finds a job that does not offer healthcare benefits.
Experts recommend that people find an alternative to COBRA as soon as possible to save money and to obtain a policy that is not temporary.
Posted on Wed, Jan 21, 2009
Understanding all of the provisions related to COBRA is daunting even to some professionals and so is information about COBRA alternatives. There are important deadlines that must be met if a person plans on continuing their health insurance after becoming eligible for benefits under COBRA. Most people realize they have more questions after they have had their meeting with the human resources department or received their written notification of COBRA benefits in the mail. It is imperative that people take action to get the answers they need so that they can make an informed decision about whether to continue with their employer-sponsored benefits or to choose a COBRA alternative. Here are some questions that are common:
What is COBRA? Most people don’t even know what COBRA is much less have an understanding about how to sign up for benefits. In short, COBRA is the acronym for a law enacted by Congress in the late 80s. It was set up to protect employees from losing health insurance coverage when there is a death of the sponsoring employee, a divorce, a job separation whether voluntary or involuntary, or a reduction in qualified hours for retaining health insurance coverage. COBRA is not health insurance.
What is a COBRA alternative? Any private health insurance can be an alternative to COBRA. Policies are available for purchase from licensed health insurance agents. Private health insurance policies are contacts made between the person covered and the insurance company, not the employer.
How long do benefits under COBRA provisions last? People can continue their employer-sponsored benefits for up to 18 months. This can be extended for a total coverage of up to 36 months if the person meets eligibility requirements such as disability.
How long do benefits under a COBRA alternative last? As long as premiums are paid, private health insurance policies last until the policy is canceled for nonpayment or the covered person chooses to cancel the policy.
How much will it cost for benefits under COBRA provisions? This is a question that can only be answered by the benefits administrator in the human resources department of the former employer. People who choose to enroll in coverage continuation under COBRA provisions must pay for 100% of all insurance premiums plus a 2% surcharge each month.
How much will a COBRA alternative policy cost? People can get free quotes from a licensed health insurance agent. Premium costs vary by the type of policy and the state where the individual lives. Rates are also affected by health and age.
These are just a few of the many questions people may have about health insurance coverage related to COBRA and COBRA alternatives. People should contact the benefits administrator at their former employer for questions about COBRA. Questions about COBRA alternatives should be directed to a qualified health insurance agent.
Posted on Fri, Jan 16, 2009
There are COBRA alternatives. People often do not understand their options for health insurance coverage. When anyone faces a job loss, divorce, reduction in work hours, or death of a covered sponsoring employee, they may be eligible for extended coverage for up to 18 months under COBRA. COBRA is the Consolidated Omnibus Budget Reconciliation Act adopted by Congress to ensure that eligible people can continue to have access to their employer sponsored health care plan.
Health insurance is complicated. That is why insurance agents must study to pass a complicated exam before they can become licensed to sell it. Most people never read their insurance policies and do not listen or in some cases misunderstand when their employers explain about their rights under COBRA. They make many mistakes that can be very costly:
- People do not ask questions when they do not understand some detail about their rights under COBRA. They may feel embarrassed or intimidated. No matter how stressful it may seem, understanding their rights is a high priority. Everyone should ask as many questions as they need in order to make an informed decision about health insurance.
- People assume their former employer continues to pay for health insurance. Nothing could be further from the truth. Anyone who participates in health insurance under COBRA pays 100% plus a penalty.
- People often think they do not need health insurance. The reasons vary. Younger people think that since they are healthy, health insurance is an unnecessary expense. Others think they will find a job quickly. Not all employers provide health care coverage and these days, new jobs are hard to find. The lesson here is that young people do get sick, and it is a mistake to assume all employers will provide health insurance.
- People do not seek the help of an insurance professional. Paying for benefits under COBRA is expensive. Insurance agents have a number of options to fit the differing needs of individuals and families. They can do a health insurance comparison that will contrast the benefits and costs to the person.
- People think everyone qualifies for benefits under COBRA. That is not the case. The law specifies the eligibilities. If an employer drops health care benefits, employees are not entitled to any protection under COBRA. This mistake goes back to assumptions. People should never make assumptions, but instead they should ask questions to find out if they are qualified.
- Many believe that COBRA is medical insurance. It is not. COBRA is an acronym that is short for the Consolidated Omnibus Budget Reconciliation Act. It is a law enacted to help people continue employer sponsored health insurance for a short period of time.
Health insurance agents work on behalf of the person buying insurance. They can offer consultations that help people understand all of their options in relation to health care coverage. They often have access to Blue Cross/Blue Shield, Aetna health insurance plans, and plans offered by other companies.
Posted on Wed, Dec 10, 2008
With unemployment possibly reaching as high as 9% in the next year, BestHealthcareRates.com is fielding a record number of questions about COBRA alternatives for family health insurance plans. Contrary to popular misconceptions, COBRA is not a health insurance plan; rather, it is a law named the Consolidated Omnibus Budget Reconciliation Act. COBRA protects employees in the event they lose their employer-sponsored health benefits. Qualified employees may keep the dental and medical insurance they had under their employer for 18 months. However, because the former employee carries the entire cost of the insurance policy – up to 102% of the original premium, the cost of maintaining insurance can be prohibitive.
Uncertain economic times are driving already financially-stressed employees to seek a more affordable COBRA alternative. BestHealthcareRates.com offers more affordable family health insurance plans than what the employer based plan would provide. By doing health insurance comparisons, one can get similar, lower cost benefits by taking a COBRA alternative. Often, the former employee is not at all aware of their options and they needlessly stay with a higher cost plan. Once they see the benefits of a COBRA alternative, they opt out of their former plan. Dental and medical insurance can be found in these COBRA alternatives too. Without a COBRA alternative, the unemployed may be paying much more than they need to at a time they can least afford it.
“If you have a disability, you may need to opt for your employer’s coverage but can still get a COBRA alternative for the rest of your family,” said Tom Carolan, Director of Client Services with BestHealthcareRates.com. “Again, by making a health insurance comparison, you will see the great potential savings that exist for your family even if you, as an individual, remain on the employer plan. A cost-cutting COBRA alternative is essential for many households even if the coverage is for the rest of the family.”