|
Individual Health Insurance Strategies for 2017
Valued Clients
In May of this year we shared information with you on the expiration of the PPACA "Reinsurance" program and how that would increase individual rates for 2017 (CLICK HERE to view this newsletter). We followed up on that information in July with the double digit rate increases that health insurance carriers will be issuing in 2017 (CLICK HERE to view this newsletter). We now want to share our strategy on addressing these high rate increases and protecting you against this relentless upward trend in health insurance premiums
How can you keep rates down without taking on too much risk?
We continue to see this upward trend in health insurance premiums. Clients who said they would never take a $2500 deductible are now taking deductibles at this amount and higher. Clients who said they would never take an HMO plan are now enrolled in an HMO plan. These are decisions we have to move forward with in order to afford our "affordable" health insurance plan.
With these thoughts in mind - we have developed the following strategy for 2017 that we truly believe will be the "new normal" when purchasing health insurance for yourself and your family:
STEP 1- Move to a Health Savings Account (H.S.A.) Plan
- An H.S.A. is a High Deductible Health Plan (HDHP) that allows you to use "tax free" money for healthcare expenditures
- Your preventive maintenance (i.e. check-ups, mammograms, labs, etc) will be covered 100% per the PPACA law
- You can move money from an investment vehicle (i.e IRA, 401 (k), etc) into your H.S.A. account with no penalty
- Health Savings Account plans have much lower premiums than any other type of plan
- CLICK HERE for a great link on the "Top 10 Reasons to Start an H.S.A."
STEP 2 - Put a "Protection Plan" in place to shield you from the high deductible of the H.S.A. plan
- Our Protection Plan consists of three parts:
- Accident Coverage - this component of the plan will pay you a lump sum cash benefit of your choosing if you require medical treatment for an accident or an injury
- Critical Illness Coverage - This component of the plan will pay you a lump sum cash benefit of your choosing if you are diagnosed with a "Critical Illness" such as Alzheimers, ALS, Cancer, Coma, Heart Attack, Stroke, etc
- Hospital Confinement Coverage - This component of the plan will pay you a daily cash benefit of your choosing if you are confined to a hospital
- When we factor in that 100% of your preventive maintenance will be covered with your H.S.A. plan and our Protection Plan will pay you cash for accidents/injuries, critical illnesses, and hospitalizations we lower your risk of meeting your out-of-pocket maximum dramatically!
STEP 3 - Consider moving to an HMO or POS based plan
- There are many HMO and POS plans that do not require referrals to see a specialist
- POS plans allow you to get medical care outside of your network
- Prices of HMO and POS plans are substantially less than PPO plans (see examples below)
Here are some actual premium examples of this strategy:
Example 1 - Single Male, 35M, Non-Smoker, Oakland County
- Priority Health PPO - Silver Plan - $1800 Deductible - $346 per month
- Move to Priority Health H.S.A. Bronze HMO - $6550 Deductible - $221 per month
- Add the Protection Plan:
- Accident Coverage ($10,000 benefit)
- Critical Illness Coverage ($10,000 benefit)
- Hospital Confinement Coverage ($500 daily benefit)
- Protection Plan Cost - $46
-
Total Plan Savings - $79 per month/$948 per year!
Example 2 - Married Couple, 35M/35F, Non-Smokers, Oakland County
- Priority Health PPO - Silver Plan - $1800 Deductible - $693 per month
- Move to Priority Health H.S.A. Bronze HMO - $6550 Deductible - $443 per month
- Add the Protection Plan:
- Accident Coverage ($10,000 benefit per person)
- Critical Illness Coverage ($10,000 benefit per person)
- Hospital Confinement Coverage ($500 daily benefit per person)
- Protection Plan Cost - $87
- Total Plan Savings - $163 per month/$1956 per year!
Example 3 - Family, 35M/35F/11M/9F, Non-Smokers, Oakland County
- Priority Health PPO - Silver Plan - $1800 Deductible - $1053 per month
- Move to Priority Health H.S.A. Bronze HMO - $6550 Deductible - $673 per month
- Add the Protection Plan:
- Accident Coverage ($10,000 benefit per person)
- Critical Illness Coverage ($10,000 benefit per person)
- Hospital Confinement Coverage ($500 daily benefit per person)
- Protection Plan Cost - $161
-
Total Plan Savings - $219 per month/$2682 per year!
Again, we believe this strategy is the only way to make a substantial impact on your monthly health insurance premium in 2017 and beyond. We have implemented this strategy many times in the past for our clients who simply could not afford their health insurance premiums. This strategy will help get your premiums down to a more affordable level and provide you with lump sum payments to address the major causes of high medical expenses - Accidents, Injuries, Critical Illnesses, and Hospitalizations.
As always, we sincerely appreciate the opportunity to assist you with your health insurance needs! You can contact the professionals at Altruis Benefit Consulting using the information below if you have any general concerns about your coverage, Open Enrollment, or Health Care Reform in general. We look forward to hearing from you!
|
