Senate fails to extend Bill for Doctors

Senate Fails to Extend Bill for Doctors: Before leaving for the Memorial Day recess, House Democratic leaders scaled back health care language from the jobs bill before passing the bill. In the package, doctors who treat Medicare patients would see a 2.2% payment increase for the remainder of this year and a 1% payment increase in 2011. Extensions of COBRA subsidies and additional Medicaid funding for states were removed from the bill. Lawmakers in the Senate will vote on the bill when they return from recess next week.

Question of the week.

Q: I understand that there are tax benefits related to the extension of dependent coverage. Can you explain these benefits?

A: Under a change in tax law included in the Affordable Care Act, the value of any employer-provided health coverage for an employee's child is excluded from the employee’s income through the end of the taxable year in which the child turns 26. This tax benefit applies regardless of whether the plan or the insurer is required by law to extend health care coverage to the adult child or the plan or insurer voluntarily extends the coverage.

Healthcare Reform: How it will affect us?

Good article here explaining how it work for individuals, families and employers.

http://www.csmonitor.com/USA/Politics/2010/0320/Health-care-reform-bill-101-Who-gets-subsidized-insurance

Retiring with no Health Insurance benefits

I had someone call me today who was a retiree asking what happens between the time I retire and turn 65 with no Health insurance pension benefits.

Well, there are quite a few options. First, If you have major prexisting conditions:

* Take the Cobra option for as long as you can (usually 18 months) if you have major pre-existing conditions especially if you have cancer, heart problems, diabetes, back issues and blood disorders. Getting a private individual plan will be difficult but not impossible. Some insurance companies have limited benefit plans for those major pre-existing conditions.

If your Cobra runs out:

Ohio - Has Hippa plans which they enroll a certain amount of individuals at a time even if they have major pre-existing conditions.

www.assuranthealth.com/corp/ah/state/ohio


Kentucky - Has Kentucky Access if they are denied by a private insurer for pre-existing conditions.

www.kentuckyaccess.com/index.cfm

Some insurance companies will offer Group conversion plans which will cover pre-existing companies but the premiums will be high, if not higher than Cobra.


* Take a short term plan if all else fails. Every state has them and they range from 6 months to a year. Although it won't cover you for your pre-existing conditions it will cover you for catastrophic coverage such as accidents.

How can I lower my premiums?

Someone emailed me today and asked how can I lower my healh insurance premiums? Good question.

1.) If you have individual coverage and not group, then odds are you have a renewal each year. In the past 10 years Health care plans have gone up an average of 10%. Some this year have gone up as much as 40%. Ask your company if they have risk evaluations to lower your premiums. If you're in good health, then you may get a lower risk tier with your company.

2.) Shop around - If you don't have too many pre-existing conditions, then shop around and find the best value. Let an independent broker do the leg work and make him find the best rates with a similar plan you have now by doing a comparative analysis with different companies. Or if your plan is weak in benefits, shop for better benefits. Health Savings accounts have the most affordable premiums right now with most insurance companies.

3.) Raise your deductible. Although this will expose you more financially in the event of a catastrophic illness or accident your premiums will obviously be reduced. Be careful, if you try to go back to an original deductible with your insurance company you might be denied because of pre-existing conditions.

4.) If you have a group plan, then generally you'll have to check with your company to see what other affordable plans are offered during open enrollment or shop for individual plans and see if your employer will compensate by going the individual route. Some will.

Good luck

Cobra Extension

The COBRA extension date ended on February 28, 2010. Congress had passed legislation in December 2009 to extend the subsidy of helping to pay 65% of the Cobra premiums for individuals and families who were laid off involuntarily. However, President Barack Obamas new budget proposal would extend it again until the end of 2010.

For those seeking alternatives many private insurance plans will still be less than the cost of COBRA but you'll have to shop around to find the best bargains. Contacting a broker who can make comparison analysis to find the best plans and rates is the best bet. Some plans will cover individuals who were otherwise denied by private insurers can find alternatives to cover pre-existing conditions. Ohio Hippa is still accepting individuals for this type coverage. A few companies have limited benefits access plans to cover those with major pre-existing conditions. In Kentucky, Kentucky access will accept individuals who have been denied for pre-existing conditions.

Family and friends ask me everyday what is going to happen in health care reform. At this point, nobody knows but all indications of a public option seem to be long odds. Tax subsidies, portable coverage across state lines, tort reform are all options on the table at this point as are a myriad of different ways to cover individuals.

Health Savings Accounts

I talk to people each day who are interested in Health savings account. These plans have been effective cost saving options for individuals who want a tax advantage plus get more affordable rates than a traditional plans. Most health savings plans offer free preventative care. So, everytime one goes for a physical, mammogram, pap test, blood or cholesterol screening there is no out of pocket cost to the individual nor deductible to meet. All other services are subject to the deductible.

When people here about meeting the deductible first before anything pays it scares them about taking a HSA. However, what they don't realize is the private insurer work with the doctors and hospitals with negotiated contracted rates so they don't pay full price for certain procedures. For example, let's say an individual walks in to see a a foot specialist and charges them $200 for the exam. The private insurer steps in and says since the member has coverage we will offer you $50 for the whole procedure. Since the specialist contracts with the insurer they agree to the allowable amount and will write off the difference. The member only pays the $50 as it applies to the deductible. Once the member's deductible is reached during the year, then the plan pays 100%.

HSA's are major medical plans so they do protect you for hospital stays, emergency room, outpatient surgeries, urgent care and prescriptions. Usually the plans have deductibles in increments of $1000, $1500, $3000 or $5000. The higher the deductible the lower the premiums. HSA's are a great way to protect the family against catastrophic events and at the same time keep premiums low cost.

If the member chooses, they can also open up an account with their bank and the can contribute monies into the account to pay towards their deductible for medical expenses and it becomes a tax write off at the end of the year.

Contribution Limits for 2009
The individual contribution limit for 2009 is $3,000 while families can contribute as much as $5,950. These dollars can be used to pay for a variety of qualified medical expenses including doctor's office visits, prescription drug coverage, dental bills, meeting the policy deductible, co-insurance, as well as several other items. The IRS furnishes a list of qualified medical expenses at their website.