short term medical insurance

Less expensive short term medical insurance

2011-01-07T05:05:00.000-08:00

We believe that many consumers are still unfamiliar with a new type of short term health insurance that is priced significantly less than other national brands. The new product is called "Secure Lite STM", calling attention to its unique cost-saving features. Premiums are about 1/3 of regular major medical insurance and about 25% less than other short term medical insurance. Coverage is issued by Standard Security Life Insurance Company of New York. Applications are made online for immediate processing and evidence of insurance can be printed immediately.

Cost savings are achieved by using higher comprehensive policy deductibles and placing limits on maximum benefits of $750,000. The new policy has a maximum coverage period of six months but allows consecutive policies for periods of coverage.

For information is available at http://www.freedombenefits.net/affordable-health-insurance/Secure-Lite-short-term-medical-insurance.html

Growing need for short term medical insurance in Washington state

2010-12-08T03:03:00.000-08:00

Washington state residents faced a higher than usual risk of employement layoffs over this past year and this trend will continue into 2011, particularly among its younger workers. Exel already announced 146 permanent layoffs in Auburn for next month (January 2011) and International Paper will lay off another 78 in Bellevue.
Layoffs at commercial employers follow layoffs and other work reductions for state government employees. In April 2010 the state Legislature passed and Gov. Chris Gregoire signed into law Engrossed Substitute Senate Bill 6503 that was designed to reduce state government spending for employees, the law requires that state agencies close on the 10 days specified in the bill or submit an alternate compensation reduction plan for approval by the Office of Financial Management.
Last week Governor Chris Gregoire proposed deep budget cuts, including the elimination of the state's health insurance program for the poor in response to the state’s budget crisis. Marty Brown, director of the Office of Financial Management, says the state needs to cut $901 million in spending. Legislators likely will face a special session to deal with the state’s budget gap prior to the regular session in January.
These are typically candidates for low cost short term medical insurance during their position of transition as a more cost-effective alternative to COBRA. While most U.S. residents have a choice of several short term medical insurance plans, Washington residents have only one. Markel Insurance Company apparently is apparently the only commercial insurance provider who has applied and received consent from the state insurance department to offer these policies. Freedom Benefits Insurance Exchange recently reviewed this coverage. We have no concerns about this single payor system, since Markel has a longstanding reputation as a stable and reliable provider of specialty insurance.
Short term medical insurance can be issued immediately with an online application and coverage can extend to as long as 12 months. While short term medical insurance is typically hassle-free, it does not cover the cost of treating pre-existing medical conditions and so is not appropriate for a person who has large ongoing medical costs. COBRA and other continuation plans, although more expensive, are a better option for high medical risk individuals.

Ford workers consider short term medical insurance

2009-12-22T02:28:00.000-08:00

Ford Motor Company announced that it will offer short term medical insurance as part of a buyout retirement offer for almost all of its 41,000 hourly workers. The offer is intended to reduce the firm's factory work force. The New York Times reports that in the past Ford kept laid-off workers in a job bank rather than remove them from the payroll. This year, however, Ford is actively reducing its work force in anticipation of lower demand for cars in the future.

The short term medical insurance plan is a six month basic health insurance policy but the details of the coverage are not provided. Ford has not announced how many workers are expected to elect the buyout offer.

Considering the larger regional trend of employers hiring temporary workers and the shift toward individual health insurance (as opposed to employer-sponsored group insurance), some of these workers in the Detroit area are likely to consider alternate affordable health insurance options for the long term before deciding whether to accept the buyout package. Those who do not qualify for lower cost options could face higher health insurance costs through their state's high risk Blue Cross insurance pool.

HCC announces affiliation with Travel Insured International

2009-10-31T15:09:00.000-07:00

In a press release dated 10/30/09, HCC Medical Insurance Services, LLC announced its new alliance with Travel Insured International. HCC Medical Insurance Services LLC is a leader in online health insurance products for international travelers and expatriates. Travel Insured International is a provider of travel insurance services such as trip cancellation, trip interruption and travel assistance services.

HCC Medical Insurance Services President Mark Carney is quoted saying “We are very excited to announce our affiliation with Travel Insured International. In spite of the economic downturn, the international traveler and expatriate’s need for health insurance products continue to grow”.
Travel Insured International’s product portfolio will now include eight additional health insurance products that are already also available online at Freedom Benefits:

Atlas Travel Series – a short-term health policy for individuals traveling outside their home country

CitizenSecure(SM) – annually renewable major medical insurance with a term-life insurance option for individuals and families

StudentSecure(SM) – health coverage for international students and scholars studying abroad

IC+ International Term Life – term life insurance policy for individuals living outside the U.S. for up to 10 years

Other products offered by HCC Medical Insurance Services include: Atlas Group, Atlas Professional, CitizenSecureSM Economy, GroupSecureSM.

About Travel Insured International

Travel Insured International, based in East Hartford, CT, was founded in 1993 by the foresight of insurance industry executive Peter Gehris when he acquired the travel protection division of the Travelers Insurance Company. Travel Insured International delivers strong, affordable benefits in the customer’s choice of a broad range of travel plans, as well as group and customized protection programs. Travel Insured International has established and driven higher standards for policy quality and customer care.

About HCC Medical Insurance Services

The international products are administered by Indianapolis-based HCC Medical Insurance Services, LLC (HCCMIS), a recognized leader in international life and health insurance offering coverage to consumers in more than 130 countries. Through its staff and a worldwide network of distributors, HCCMIS provides quality and value to clients. The company is available 24 hours a day, 7 days a week to serve its clients worldwide. HCCMIS is a subsidiary of HCC Insurance Holdings, Inc. (NYSE: HCC), a leading international specialty insurance group headquartered in Houston, Texas. HCC has assets of $8.9 billion, shareholders’ equity of $2.8 billion and is rated AA (Very Strong) by Standard & Poor’s and AA (Very Strong) by Fitch Ratings. In addition, HCC’s major domestic insurance companies are rated A+ (Superior) by A.M. Best Company.

A closer look at Secure Short Term Medical Insurance

2009-10-19T07:56:00.000-07:00

The brand name "Secure Short Term Medical" is one of the best-known and most highly regarded low cost health insurance plans in the U.S. The brand actually consists of four products that each target a specific group of consumers. The four products are: 1) Secure STM, 2) Secure Lite STM, 3) Secure 12x3 STM and 4) Secure Saver STM.

What makes this product lineup work so well? Probably not any one thing in particular but rather a combination of factors. We could make an analogy to an "all star lineup" in a sports team. First, the plan is administered by Health Plan Administrators, Inc., arguably one of the best service organizations in health care today. Second, The Standard Security Life Insurance Company of New York enjoys a strong reputation among insurance professionals and consumers.

Next is the length of coverage. This is the only insurance product that can adequately span a gap from just one month to 36 months of continuous coverage. With a growing number of consumers looking forward to post-reform insurance within a few years, the Secure 12x3 offers the flexible length of coverage they need del with the uncertainty of the health care reform timetable.

Eligibility for the four insurance plans is liberal so most applicants will qualify for coverage. In fact, in many cases this is one of the few options available to applicants who have been previously declined for health insurance with another company. The exceptions are listed in the "medical eligibility" section of the online product descriptions. It is important to realize that all short term medical insurance plans exclude coverage for pre-existing medical conditions. This is what makes them so affordable and easy to access.

Only one of the four products screens for weight or previous declines in determining eligibility. That is the Secure Saver, as we might expect, since it it the lowest cost plan with the least predictable out-of-pocket expenses.

Finally, we cannot ignore price. Despite all the talk about the quality of insurance the fact is that many consumers buy based primarily on price. The Secure Lite and Secure Saver rank among the least expensive major medical insurance choices in many parts of the country.

A comparison of the four Secure STM products is published at FreedomBenefits.net and a description of coverage and exclusions is available for each product. Although all of these policies come with a standard "10 day free look", generic sample policy certificates are also available online for all four products for those who want to take a closer look at these insurance options.

Celtic Insurance gains customers with low prices

2009-10-07T03:05:00.000-07:00

Pricing of short term medical insurance tends to be more stable than managed care plans or other types of health insurance. As a result, pricing trends tend to develop more slowly and it may take longer for advisers and consumers to identify those companies with cost advantages. One such example is Celtic Insurance that has slowly and quietly winning over customers with its low rates and strong customer service. The coverage is priced and issued completely online at the company's secure enrollment site managed by ehealthinsurance.

Unemployment Health Insurance

2008-12-09T20:22:00.000-08:00

One of the most painful parts of losing a job is having to deal with replacing your health insurance. Most people feel unprepared to select and enrolling in this type of health insurance even though most of us will have a handful of interruptions in employer-provided health insurance over our full working career. Employer-provided health insurance expires on the last day of the month of termination of employment. Enrollment in an unemployment health insurance is never automatic and must be addressed within a short time after termination of employment.

Types of coverage

While unemployment compensation is provided through the government, unemployment health insurance is provided through commercial health insurance companies. The term "unemployment health insurance" is generic and therefore may refer to one of several available insurance programs. Some people who work for larger companies have the option of continuing their same health insurance for up to 18 months by paying the full cost of this coverage plus an administrative fee. This is commonly known as COBRA coverage. In some cases a similar program called "individual conversion coverage" is available. In either case the burden of enrollment and full payment of premiums is solely the responsibility of the terminated employee. Despite the obvious advantages in simplicity and continuity of coverage, few people can afford this option.

The most popular type of unemployment health insurance is short term major medical insurance. Despite the name, this insurance can span several years or longer and eligibility requirements are minimal¹. This insurance offers flexibility with high coverage limits. Policies can be renewed month-to-month from one month to six or twelve months. The two most important features of this coverage are that it is valid with all doctors and hospitals in the U.S. (no network required) and it provides a Certificate of Creditable Coverage² to be used with your next employer's health insurance policy. This is important because it ensures that the new coverage immediately takes over the cost of treating pre-existing medical conditions.

Specialty insurance can be used in specific situations and regular individual major medical insurance is suitable when it is unlikely that there will be other employment in the future and the applicant is financially stable.

Shopping Tips

Plan to enroll in a bare-bones coverage rather than a fully loaded policy. Most people avoid incurring voluntary medical expenses while they are not employed so this insurance is primarily designed to cover large unexpected medical expenses. Also, because of the uncertainty of unemployment, it is smart to select an insurance that is less expensive than you think you can afford.

Short term medical insurance is priced at about 1/3 of the cost of your former insurance or COBRA option. For a typical employee, this means that the total cost of the unemployment health insurance will be approximately the same as the amount you were contributing to the employer's health plan through salary-deductions³. Using his guideline, it may be psychologically comforting and aid in your personal financial planning to know that the total out-of-pocket cost of health insurance remains relatively constant from the period of employment to the period of unemployment.

All of the following insurance products provide strong protection against catastrophic losses and provide a Certificate of Creditable Coverage to ensure payment for pre-existing medical conditions on your next employer-provided health insurance plan. The price of the coverage varies and some products are better suited for specific situations. We suggest narrowing the list to two or three choices and then get online quotes for each product.

Use the online enrollment options available. This is faster and safer than a paper application and offers immediate confirmation of coverage.

Insurance Choices

All of the following choices are available a MedSave.com. They are grouped according to price range although price varies from one person to another based on location of residence, age, and sex.

Lowest cost unemployment policies - Celtic Insurance STM and UnitedHealthOne Golden Rule Insurance STM are often the least expensive insurance plans to cover a gap in group health insurance. Some of these plans keep cost down by using a "per cause" deductible rather than a single policy deductible.

Mid-range unemployment policies - Secure 3x12 (36 month) short term medical insurance, and Health Savings Account qualified health insurance for long term coverage.

Higher priced unemployment policies - Blue Cross, Aetna, Cigna, CelticCare

Special Situations

When specific medical conditions or circumstances exist then additional sources should be checked to determine the best coverage options. The special situations are: 1) when significant medical conditions, including diabetes, high blood pressure or high cholesterol exists, 2) applicant is a resident of MA, NJ, NY or VT, 3)non-US citizens, 4) residing in the U.S. les than a year, 5) previously declined for health insurance coverage, 6) applicant is overweight or 7) coverage is needed outside of the U.S. In all of these cases, see the article titles "Short Term Medical Insurance for Special Situations".

Individual help in selecting the best value insurance is available through OnlineAdviser at onlineadviser@short-term-medical-insurance.com.

Footnotes

¹ See the article "Am I Eligible for Short Term Medical Insurance" and "How Long Can I Be Covered by Short Term Medical Insurance" for details.

² See the article "Understanding a Certificate of Creditable Coverage" for more information.

³This assumes that the average employee contribution for employer-provided coverage is about 40% of the total cost.

Recession impacts health insurance

2008-11-13T19:50:00.001-08:00

An artice in Time (November 13, 2008) predicts that the number of uninsured Americans will rise sharply to above 50 million within the next few months. This pessimistic prediction assumes that many employers will drop their group health plans to combat the recession by the end of the 2008 calendar year and that many of these individuals will not obtain alternate health insurance on their own. The prediction also assumes that employers would drop health coverage altogether rather than switch to one of the low cost limited beneft plans now available. We see no reason to support these assumptions.

The number of uninsureds has actually decreased slightly over the past two years as more affordable insurance plans have been introduced to the market according to our "Covering the Unisured: 2008 Update" report. The cost of employer provided health insurance coverage for an employee without dependents is about $6,000 per year and COBRA coverage cost slightly more. But the cost of individually purchased short term medical insurance averages only about $1,800 per year. About 72% of Americans currently qualify for this type of low cost short term medical insurance. (Short term medical insurance is not available to the residents of four states or individuals with serious pre-existing medical conditions).

Given this viable and affordable alternate coverage possibility, it seems unlikely that more than an additional four million people would choose to go without any health insurance in 2009.

Golden Rule Web site temporarily closed for maintenance

2008-10-19T16:46:00.000-07:00

Golden Rule Insurance Company, a national leader in innovative low cost health insurance, announced that its "E-store" will be closed for system maintenance over the weekend of Friday October 17, 2008 and will reopen at 8:00AM eastern time on Monday October 20. While direct self-serve online quoting, enrollment and some other functions may still be available during this weekend, MedSave.com will postpone customer service requests until Monday when all online functions are available to provide full enrollment support.

Golden Rule Insurance provides low cost short term medical insurance as well as a line of affordable long term renewable insurance policies for individuals and families in most states. See www.MedSave.com/goldenrule for more information.

Why are short term insurance rates falling?

2008-06-25T17:04:00.000-07:00

With health care costs rising sharply, why are so many short term medical insurance plans lowering rates? The latest rate reduction was announced at MedSave.com by HPA Inc., the administraors for Secure STM, including the "3x12" 36 month short term medical plan and the new "Secure Lite" lower cost short term medical insurance.

In an inflaionary environment, rate decreases are usually triggered by a drop in medical care utilization. Evaluating utilization trends in health plans is a complicated topic even for those who have access to the best data. We don't; we are just speculating. Just for the sake of discussion, let's assume that utilization has declined in short term medical insurance in recent years. Why would that be?

The easiest explanation is the increase in policy deductible. The median policy deductible selected by buyers increased from $500 a few years ago to $1000 today. The largest increase in policy deductibles chosen is in the $2500 deductible option.

A person who is healthy enough to meet underwriting standards is unlikely to incur substantial medical expenses in excess of $1000 within the 3-4 month average lifespan of a short term medical insurance policy. Of course some do, and they are the reason that insurance is important. But a larger number of people simply do not incur a claim on the policy that exceeds a $1000 deductible.

Another explanation is that people are actually waiting for group insurance to kick in after the STM before going to the doctor. That makes sense and is the behavior we would expect. Perhaps we will eventually find that fewer people are using STM as a substitute for regular health insurance. Those people might have gravitated to limited benefit and other types of low cost health insurance.

CT will offer coverage to high risk small businesses

2008-05-07T08:20:00.000-07:00

Connecticut’s latest health insurance bill has now passed the state Senate and is expected to be signed by the Governor. The approval vote came late last night and today’s news is filled with praise for the “outstanding accomplishments” of the legislators. The new bill presents an entirely different approach to health insurance reform.

The law allows local municipal government employees and small businesses to join the state employee’s health insurance pool. Premiums are already about $2,000 per month for family coverage, (vs. a national average of about $1,200 for comparable coverage in large firms). Certainly this is not what we consider “affordable” but this is apparently far less than some CT municipalities are now paying for health insurance! Few small businesses could afford this coverage. Those that could foot the bill will cover only the owners or key employees. There is no economic reason to suggest that small businesses would use the plan to cover rank and file employees. Small businesses tend to pay far less for employee health benefits than larger firms and municipal governments.

The problem is that those who understand insurance principles realize that adverse selection under the new law will now drive the premium rates up in a spiral effect. That is ALWAYS the economic effect of opening up a guaranteed issue health plan to additional applicants on a voluntary basis. The state will now be effectively subsidizing the health care costs of local municipalities and the rlativley few affluent small business owners who have significant medical costs. The first may be commendable – but who would have expected the second result? Eventually the cost of coverage under this Connecticut insurance plan will be HIGHER than any other state's employee cost but LOWER than any other high risk insurance pool. It will be a highly effective method to distribute health care costs of a few among all the state's taxpayers.

Open enrollment health insurance pools are certainly not a new concept. This is the approach used in most states to cover high risk individuals despite the clear indications that those who need the insurance most can not afford it. Most states use open enrollment health insurance pools as a "last resort" coverage under federal HIPAA law for those who cannot find more afordable coverage. Connecticut's plan to combine the open enrollment plan with the taxpayer-funded state employees' health coverage is an interesting new approach.

Is the single payer issue dead?

2008-05-06T08:10:00.000-07:00

The tide of public opinion about our nation’s health care woes has taken a sharp turn over the past two months. The movement to blame commercial health insurance – as exemplified in Michael Moore’s “Sicko” movie - has lost wind. While the health care problems remain exactly the same as before, fewer people are willing to blame health insurance companies. We still pay way too much for health care for less than ideal care. The prognosis remains that the problem will get worse before it gets better. But apparently we are beginning to realize that commercial health insurance system is more likely to be part of the solution rather than the root cause of the problem.

Support for an open market commercial competition in the health care business has increased. Most of the current legislative proposals for health care reform on a national and state level now incorporate the use of private health insurance companies.

Those who endorse a government controlled single payer health care system are outraged. Socialist-minded reformers have noticed the change and express frustration in many online publications this week. Some Americans hope for a single payer government-controlled health care system. One blogger titled his column “What’s Going On?” and expressed disgust with the sudden trend toward his state politician’s recent endorsement of commercial health insurance solutions. Another lawmaker in Oklahoma defended himself from attacks by health care reformers by taking a hard stance that proposed measures to expand coverage would simply be too expensive to justify the support of his constituents. On a national level, McCain’s health care proposals, previously regarded are tired and boring, are applauded by mainstream media this week.

So why are we seeing this sudden change in direction? Much of the change in attitude is attributable to the explosion of myths surrounding commercial health insurance. Three of the most popular myths about commercial health insurance companies are:
1 - The profits of health insurance companies boost our overall health care costs.
2 - Private insurance is more expensive than public insurance.
3- Commercial insurance practices are not in the public interest.

See http://www.slate.com/id/2190273/ We will likely see much more on this topic.

Insurance for college graduates

2008-04-25T03:06:00.000-07:00

New data gathered by insurers shows that parents continue to be the driving force in a college graduate’s decision to buy short term medical insurance following graduation. Parents pay the premium in more than half of the short term medical insurance policies issues to those in the 21-24 age group. Without this parental financial support, a college graduate is four times more likely to go without medical insurance for a period of two months or more following gradation.

College graduates and their families are often surprised to learn how affordable health plans can be. MedSave.com, a leading provider of low cost medical insurance for college graduates, reports that the average cost of the six most popular health plans to young adults has dropped this year to for the first time in recent history. The price drop is due to the expansion of limited benefit plans rather than a reduction in overall health care costs.

But more health plan choices also means that there is more potential for selecting the wrong coverage. Not surprisingly, the least expensive health plans tend to be the most popular among young adults. This can lead to less than adequate protection. These health plans tend to provide up-front benefits for smaller medical expenses like doctors office visits but offer the least protection for catastrophic risks. It is important that college graduates choose the right plan for their own health situation. It appears that parents may be less likely to be involved in the selection of the insurance than in helping with the cost. Many college graduates are purchasing insurance for the first time and purchase trends indicate that some are making uninformed choices based solely on the cost of coverage or misperceptions of the risk/benefit aspects of insurance choices.

In most cases a high deductible short term medical insurance policy provides a young adult with the best protection at the lowest cost. Most college graduates and other young adults do not benefit financially by purchasing health insurance that covers routine health care like doctors office visits, lab tests and prescription drug costs.

Detriot business owners mirror national trends

2008-04-21T19:04:00.000-07:00

A newly released survey of Detroit area businesses showed that while they are highly concerned with the effect of uninsured on their health costs, few support proposed legislation to require health insurance.

The results of this survey mirror those of other groups around the county. We want everyone to have health insurance, but we draw the line at requiring it by law.

The survey was conducted by John Bailey & Associates Inc. in preparation for the Detroit Regional Chamber of Commerce’s Mackinac Policy Conference. Surveyors found that 46% of members would vote “no” on the proposed constitutional amendment to require health insurance; 27% would vote “yes,” and 27% had no opinion or were undecided.

In Michigan, as in most other states, there are more low cost health insurance options available this year than at any time in the past. Yet without a requirement to carry insurance, about 16% of the population is uninsured and those with insurance wind up paying for the cost of health care for the uninsured.

Short term medical insurance in New York

2008-04-18T07:09:00.000-07:00

New York residents face a triple threat when it comes to short term health insurance. First, the insurance products used in most states that are specifically designed for this purpose are not available in New York. Second, the coverage that is available is slow; often taking at least a month just to get through the manual application process. Third, the coverage is expensive. No pricing discount is recognized for the likelihood that this insurance will not be in force long enough to accrue catastrophic claims.

The easiest solution is to buy temporary insurance while staying in another state. Insurance issued in another state is valid in New York and allows treatment with any doctor or hospital in the U.S. There is no requirement that the address on temporary health insurance be your permanent residential address. Some New Yorkers residents purchase health insurance while staying at their out-of-state colleges, while at their second home in another state or while on vacation or visiting relatives. The insurance covers treatment while they are away from home as well as with the doctors and hospitals at home in New York. Almost all short term medical insurance is purchased online and most offer immediate download of the policy and insurance ID cards. Most insurance companies allow you to have the policy mailed back to a New York address if you will be returning from your trip soon.

The only other possible alternatives we can offer are:
1. Core Health Insurance – a limited benefit policy that does a fairly good job at mimicking the benefits of major medical insurance
2. International Medical Insurance - for individuals who are not permanent residents of U.S.
3. Inbound Immigrant Insurance – for individuals who have recently moved to the U.S.

If none of these options will work then it is especially important to explore all options to keep, extend or convert prior health insurance regardless of the higher cost.

Masschussets learns that "insurance is not health care"

2008-04-15T05:25:00.000-07:00

A flood of articles in recent weeks discuss the difficulties triggered by Massachusetts' experiment in mandadted health insurance.

The Kaiser Founation published an excellent summry report at http://www.kaisernetwork.org/daily_reports/rep_index.cfm?DR_ID=51517 .

Several other states including California have declined similar proposals. Pols show that the majority of Americans do not wnt mandated health insuance, yet this provision remains a key provision in Hillary Clinton's campaign platform.

Health insurance in a recession

2008-04-14T12:06:00.001-07:00

A new article titled "Health Insurance in a Recession" points out some general strategies that may prevent costly mistakes when making desicions about health insurance in financially difficult times.

great quote on nationalized health care

2008-04-13T19:55:00.000-07:00

Nationalized health care will have: the compassion of the IRS, the efficiency of the postal service, the failure rate of government schools, the enforcement tactics of the Bureau of Alcohol, Tobacco, and Firearms, and all at Pentagon prices!
-- Albert V. Burns

Bloggers condemn Families USA Report

2008-04-12T10:31:00.000-07:00

Families USA, a liberal lobbying group launched a nationwide media campaign this month to push its agenda of universal health insurance. The campaign is based on propaganda that the lack of health insurance is contributing to an increase in pre-mature deaths. The press releases titled “Dying for Coverage…” are prepared separately for each state in order to peak local interest manipulating statistics on the number of uninsured people on state by-state basis as the basis for calculating a number of deaths for maximum media impact. The problem is that the re is no factual basis for the mortality calculations or for jumping to the conclusion that health insurance is the controlling factor in cases of inadequate health care. The majority of information published on this topic would directly contradict the Families USA opinions.

Surprisingly, a large number of mainstream media reporters picked up on the press releases and published stories that present the opinions without checking the background. These are a few headlines that appeared around the country:

“Lack of health insurance can be lethal for Alaskans”, 4/12/08, Anchorage Daily News

““Report: 460 Hoosiers die each year due to lack of health coverage”, 4/5/08, Lafayette Journal & Courier

““Deaths tied to lack of insurer: 1,000 in N.C. died for want of health plan, study says”, 4/5/08, Winston-Salem Journal

““Report: Thousands die from lack of insurance; Several Missourians of working age with no coverage die each week, study shows”, Springfield News-Leader

Normally the mainstream media would recognize this type of press release as a political spin and ignore it. We do not know whether reporters simply took the easy route of writing their story by reproducing the press release without gathering additional information or whether perhaps the writers personally support the efforts of Families USA. Some of the reporters indicate that they are covering only the published report, and are not implying that their article is a balanced news report on the topic. In either case, it is clear that the newspapers readers were not been as easily fooled.

Public comments on Web sites are sharply critical of the campaign. These are a few comments (without citations) posted by boggers on the newspaper articles:

“Lack of insurance doesn't kill people. Lack of treatment, lack of living a healthy lifestyle, lack of exercise, lack of a healthy diet.....those things are much more likely to kill someone. It might take some effort to find insurance or health care, but it's available”.

“Uninsured who live a healthy lifestyle will lead longer, healthier lives without the side effects from the pharmaceuticals that modern medicine uses as a band-aid. Modern medicine does not attempt to find the cause of a medical condition, but only treats the symptoms”.

“merely having health insurance is no guarantee that you will be able to seek out treatment”.

“the affordability of health care is not directly related or controlled by employment status, income or insurance”.

"5 out of 6 people who die prematurely do have health insurance! What does that say about the importance of health insurance in causing deaths?"

We did not reproduce any of the more crudely worded criticisms but a strong majority of bloggers found the report objectionable. Other comments pointed out that we have long known that 80% of our nation's health care costs are directly tied to five behavioral factors – smoking, over-eating, lack of exercise, lack of stress management, and poor nutrition. There is no indication that there is any connection between health insurance and these five key behavioral issues. Other writers pointed out that no one in America who actively seeks treatment is denied basic health care – regardless of their ability to pay. Every state has adequate welfare type health care for those who are willing to spend their own money before requesting public assistance for medical expenses. Free basic medical treatment clinics and hospitals that provide free care based on demonstrated financial need operate in most geographical areas.

The consistency of the theme of the strong majority of these public responses indicates that Americans are increasingly aware that additional regulation of health insurance without addressing the underlying health care affordability issues is pointless and will only cause further harm. The most comprehensive public opinion studies including a massive survey by the AFL-CIO covered in U.S. News and World Report in March 2008 indicates that the majority do not support mandated health insurance or additional government intervention in health insurance.

At MedSave.com, we consider ourselves to be activists in the health care reform movement and we support the lobbying efforts of many reputable organizations like America’s Health Insurance Plans, Kaiser Foundation and Covertheuninsured.org and we would financially benefit from national health insurance reforms, but we feel that it is ethically necessary to distance ourselves from the intentionally deceitful strategies of Families USA. This type of propaganda will not help promote a solution to the national health care affordability crisis.

Health insurance scams in Maine

2008-04-08T12:16:00.001-07:00

Maine Department of Insurance warns that consumer insurance scams increase during economic downturns. The logo above is designed to help inusrance buyers focus on verifying the legitimacy of dels that seem too good to be true. Consumers are also welcome to use the free independent OnlineAdviser service simply by emailing onlineadviser@medsave.com to verify the legitimacy of any suspected insurance plan. All of the low cost health insurance plans listed at MedSave.com at http://medsave.com/low-cost-health-insurance-listing/me.htm have been verified as legitimate legal plans in Maine.

1 in 9 people know "HSA"

2008-04-06T17:53:00.000-07:00

The same study cited in the previous post indicates that only one out of nine people recognize that "HSA" stands for "Health Savings Account".

Insurance survey reveals consumers' lack of understanding

2008-04-06T17:43:00.000-07:00

A survey by Fleishman-Hillard Research indicates that almost twice as many people know the co-payment on their health insurance policy as the maximum out-of-pocket costs. The co-payment has little economic importance compared with the total out-of-pocket expense. The variance between different policies in their maximum out-of-pocket expenses is much more significant than the difference in co-payments. For example, policy co-payments range from $5 to $50, a difference of only $45. Maximum out-of-pocket range from $1,250 to more than $15,000. Obviously the out-of-pocket expense has more impact on the policyholder’s overall financial well-being. Yet only one in three people know the maximum out-of-pocket of their policy. Buyers who are aware only of the co-payment are more likely to make wrong policy selection decisions.

Racial differences in U.S. health care

2008-04-06T11:58:00.000-07:00

Pointing out racial differences is always a touchy are, and health insurance should be no different. Two publications this past week pointed out sharp differences in medical insurance issues between African-Americans and white Americans.

An article in Penn State Live said that African-Americans under age 65 are three times more likely to be covered by Medicare than whites.

Health Affairs Policies Institute reported that “Minorities have, in general, equal or better mental health than white Americans, yet they suffer from disparities in mental health care.”

The differences are likely to be at least partly attributable to income differences between blacks and whites. But what really caught our attention and caused us to reference these publications is that they underscore and confirm the implication of numerous other reports from various source that seem to be saying that the typical uninsured person in America is a young adult middle-class working white person.

South Africa Supreme Court Approves Short Term Medical Insurance

2008-04-06T11:32:00.000-07:00

The Supreme Court in South Africa ruled that short term insurers are allowed to sell medical insurance. The ruling has little bearing on citizens of the United States and other countires, however it appears possible that a similar legal contest could occur in the U.S. where state legislators show willingness to disallow this popular type of healh insurance within its borders. Some people question the authority of individual states to disallow an insurance that is considered a blessing by many people in most other states because of it affordability, liberal coverage and ease of use.

But because short term medical insurance buyers tend to be younger and healthier than those who pay much more for other types of medical insurance, some lawmakers want to level the playing field an have the younger healthier people pay the same insurance rate as the older less healthy people.

War on Affordable Health Insurance

2008-04-04T11:48:00.000-07:00

A sampling of this week’s political headlines would lead a reader to believe that our nation’s War on Terror had been replaced by a War on Affordable Health Insurance. The most severely affected were Montana residents where Celtic Insurance Company announced a temporary suspension of new applications. The suspension applies not only to the low priced short term medical insurance but also to the popular renewable “CelticCare” and “CelticSaver” Health Savings Account plans for individuals and families. Because of the relatively small number of low cost health insurance carriers in Montana, the suspension will immediately affect the state’s insurance residents.

Celtic Insurance issued a statement saying “We are currently in discussion with the Montana Department of Insurance to gain new product approval for our filing. We are working closely with the Department to ensure a quick reentry into the Montana market.” The company gave no reason was given for the suspension but we presume that Montana’s notoriously difficult insurance regulatory system is to blame.

Another insurance product that covered emergency room treatment administered by Value Benefits was withdrawn from the market, according to the administrator, and was then quickly announced as reinstated in 22 states by the end of the week. As of today, “Value ER” policy is available only to residents of AK, AL, AZ, FL, GA, HI, IA, ID, IL, LA, MA, MI, MO, MS, NC, ND, NE, NM, OK, OH, PA, RI, SC, TN, VA, WI, WV, and WY . Emergency Room insurance has grown in popularity as the deductibles of most group health policies increased to eliminate any benefit in the event that immediate care is needed. This supplement insurance ensures that covered members won’t avoid treatment because of the cost when they need emergency care. A report released last month by the ALF-CIO showed that almost a third of Americans surveyed said that they had avoided necessary medical care due to the cost.

Announcements of proposed legislation in several other states including Pennsylvania and Florida drew fire for the effects it could have on eliminating more affordable coverage like short term medical insurance. An increasing number of states are considering laws that would have everyone purchase substantially the same type of insurance coverage. This type of legislation was enacted in New Jersey more than a decade ago and resulted in ridiculously high individual health insurance rates. More than half of the uninsured people in the U.S. qualify for health insurance and could afford coverage but are either unaware of the more attractive insurance choices or do not perceive the value of coverage. They tend to be uninsured for less than a year and find coverage in their next job or through some other means other than government paid coverage.

MedSave.com joined with other consumer advocate groups earlier this year in proclaiming that the proliferation of many new limited benefit health insurance plans meant that there were now more affordable health insurance choices to most people than ever before. Limited benefit health plans are used by large employers like Wal-mart to provide affordable health coverage for their lower income employees. These policies can be purchased by individuals to supplement other health insurance (for example, to lessen the risks of a $5,000 deductible health savings account policy) or may be used alone when no other insurance is available or affordable. Some limited benefit plans like Core Health Insurance do a reasonable job in bridging the affordability and coverage gap between today’s most common health plans and traditional major medical insurance.

The practice of regulating health insurance through legislation instead of dealing with the underlying cost of medical care continues to hurt consumers. It appears that our celebration of the increase in affordable health insurance choices available in the market might have been premature.

health insurance requirement for Texas college students

2008-04-03T09:38:00.000-07:00

The Texas state legislature is considering a measure that would require all students at state-supported colleges and universities to have health insurance. About one in four of the state’s college students are uninsured. Some students who are already struggling with the cost of tuition and board are worried that the new requirement would put the cost of college out of reach.

If enacted, Texas would be the only state to single out college students for this requirement. The Commonwealth of Massachusetts has a new law that requires all residents to have health insurance. Similar proposals were defeated in California and other states. The most recent polls show that a slim majority of Americans are opposed to mandated health insurance coverage.

The state gives colleges the option of providing campus-based health coverage but does not require this service. Such plans are great for providing routine health care at a reasonable cost, but are inadequate for providing catastrophic care or medical care with other medical providers outside of the school location.

MedSave.com surveyed the major medical insurance carriers available in Texas and priced the coverage for an 18-22 year old living in several metropolitan areas of the state. While many full coverage health insurance plans would cost more than $3000 per year, at least one reputable insurance carrier offers catastrophic major medical insurance for less than $50 per month. The most affordable plans were offered by Celtic Insurance at www.celticenrollment.com. Celtic offers short term medical insurance than can be purchased in one semester (6 months) or one year policies and paid on a month-to-month basis. Longer term renewable policies are also available, but college students typically change insurance coverage too frequently for the renewable policy features to have much value. The cost of a policy with a high $5,000 deductible would be about $500 per year. Cost varies slightly with age, sex and location. Houston, Dallas and Austin areas have the state’s highest medical costs. Details, pricing, coverage options and enrollment are available directly online.

High deductible health insurance policies are becoming increasingly common in pace with the growth in popularity of Health Savings Accounts. A typical student health insurance policy has a deductible of $1000 or more, compared with a $500 deductible only five years ago.

Ideally, a college student would combine a university based health plan at a cost of about $350 per semester for routine care with a high deductible insurance plan at about $300 per semester for peace of mind that the best care would be available with any medical provider in the event of a serious accident or illness. The combined cost of providing full health coverage for a student would be slightly more than $100 per month. While this is substantial for a college student on a tight budget, it is significantly lower than the cost of health care for older adults. The national average cost of full coverage health insurance for adults is now more than $400 per month.

We conclude that as long as insurance coverage is available under $50 per month then the cost of minimal health insurance coverage would not likely be a financial impediment for the majority of Texas college students. We are concerned that the majority of health insurers are priced considerably higher and that market average prices may prevail in the longer term.

Massachusetts health insurance law unconstitutional

2008-03-29T03:16:00.000-07:00

Two legal expert opinions in the Los Angeles Times conclude that the law requiring residents of Massachusetts to have health insurance is probably unconstitutional. No constitutional challenge has yet been brought to the courts but, if challenged, this approach would likley be struck down. Karl Manheim, law professor at Loyola Law School and Jamie Court of the Consumer Watchdog explain the legal difference between required auto insurance, which is constitutionally legal, and required health insurance which is not.

Uninsured in New Mexico

2008-03-29T02:38:00.000-07:00

In New Mexico, the rate of uninsured is about 21% of the state population; significantly higher than the national average. State officials believe that a majority of the uninsured qualify for a cost-subsidized insurance plan that may cost about $35 per person per month. State administrators presume that many people do not know that they are eligible for coverage. Most of those who do not qualify for the cost-subsidized program are eligible for a number of commercial health insurance plans that cost less than $200 per person per month. Some of the short term medical insurance plans are more appropriate for season workers and the supplemental insurance plans are more likely to encourage basic and preventative health care visits because they require no deductible or co-pay. MedSave.com hosts a listing of low cost health insurance plans available in New Mexico.

We have long believed that consumer education campaigns are the most cost-effective method of reducing the number of uninsured in the United States. In New Mexico, however, the issue may be complicated by language and cultural barriers, as well as the requirement to prove citizenship for the cost-subsidized plans. (Commercial health insurance does not require citizenship but is usually more expensive than the state plan).

Americans Oppose Health Insurance Restrictions

2008-03-26T07:15:00.000-07:00

Americans are calling for reforms in the health care system but increasingly want health insurance to be left as a free market system. In contrast, the largest portion of legislative initiatives throughout the country focuses on revising and restricting health insurance and leaves the rest of the health care system unchanged. Public opinion, at least judged by the trend of opinions posted on many news Web sites, shows increasing awareness of the distinction and intolerance of this political approach. The pattern of failures of legislative actions aimed at addressing health care costs - ranging from Health Savings Accounts to universal health insurance in Massachusetts – underscore the fact that addressing health insurance laws will not solve the health care crisis. Americans want to address the real underlying causes of high health care costs and want health insurance to remain an open market system with a range of individual choices.

A new survey called “2008 Health Care for America Survey” sponsored by the AFL-CIO of 260,000 mostly middle income respondents showed that one third of Americans skipped needed health care because of the high cost. The decision does not appear to be connected to whether or not they had health insurance. This is in contradiction to the primary arguments for universal health insurance.

This week’s U.S. News and World Reports (3/25/08) says “"There is a lot of data that suggests that those who do have private health-care coverage are very satisfied," said (the executive vice President of Americans Health Insurance Plans). One survey found that "87 percent of respondents with private insurance said their health-care coverage gives access to good medical care at an affordable cost".

This blog covers reports on many of the state reform proposals as reported by various media and we find that an increasing number of commentators are in tune with the theme “keep the government out of health care” and “let a market economy prevail in health insurance”. Writers in online forums are increasingly concerned that pending or proposed legislation may restrict access to low cost health insurance plans like short term medical insurance and supplemental limited benefit health insurance that are now available through cost-conscious consumer Web sites like MedSave.com.

One of the well-phrased comments in this theme was published today in The Cente Times newspaper quoting Keith Richardson, 46, of Clarion, Pennsylvania; pastor of the First Baptist Church of Clarion running for the 5th Congressional District. “We have to look to the root causes for increases in medical costs, such as lawsuit abuse and excessive governmental intervention. I’d seek reforms that curb lawsuit abuse, such as capping punitive damages in most cases, or making plaintiffs in frivolous suits responsible for costs. I’d oppose any attempts to nationalize health care insurance. Free-market, private- sector forces are key to efficient and competitive health care and insurance systems. More government involvement means higher costs, greater waste, lower efficiency and reduced quality of health care. Just ask anyone from Canada who gladly pays extra to get health care in the U.S.” Based on recent trends of published opinions on the topic of health care reform, we beleive Mr. Richardson's position now represents the general opinion of the majority of Americans.

Although we see a lack of confidence in the U.S. health care system overall, there is growing indication that Americans oppose the increased regulation of health insurance as a solution to the problem.

health insurance help for college students

2008-03-23T04:47:00.000-07:00

An article in the 3/23/08 Pittsburgh Post Gazette says that some students at one Pennsylvania community college are staying in school just for the health insurance and not really pursuing an education. Since Pennsylvania has most affordable health insurance options than almost any other state, wouldn’t it make sense for the school to promote the use of free services like OnlineAdviser at MedSave.com that specializes in matching people up with the best health low cost insurance plan?

Student health insurance costs from $600 a year for a healthy student on a popular short term plan like American Health Shield to about $3,000 per year for a person on a group plan. There are cost-subsidized plans for low income applicant that cost even less. Most healthy Pennsylvania college students simply enroll in least expensive major medical plan they can find like those listed at www.short-term-medical-insurance.com on a semester-to-semester basis but there are a wider range of choices for students with special insurance needs. But even in the worst case, that’s more than the cost of tuition for a student who isn’t really interested in the course of study.

Additional resources for students:
Student Health Insurance Tips
Health Insurance Options for Graduating Students
MedSave.com Expands Support for Graduating Students
See more at http://www.medsave.com/articles.htm

Massachusetts wrestles with underfunded health plan

2008-03-22T16:11:00.000-07:00

Massachusetts is now kicking some members out of the state health insurance pool citing the costs were “significantly more” than expected. People enrolled in the health plan pay only part of the cost and the rest is paid by the state. Participants contribution varies according to income. Both the state’s cost and the enrollees premiums are expected to rise more than 10% this year. Those removed from the price-subsidized state plan will be required to purchase commercial medical insurance. Few of the least expensive commercial health insurance plans are available in Massachusetts according to MedSave.com, a national leader in affordable health insurance.

The situation will only get worse since the plan does not have adequate protections against over-utilization. In time, health care inflation in Massachusetts will likely exceed national averages. New Jersey, California and other states looking to enact universal health care – note that Massachusetts-style is not the way to do it.

http://www.boston.com/news/local/articles/2008/03/21/state_health_plan_underfunded/

Wall Street feels the effect of insurance laws

2008-03-21T06:30:00.001-07:00

Another wave of Wall Street workers will be looking for new jobs in the wake of the Bear Sterns takeover this week. The Wall Street Journal reported that Bear Stern employees expect further downsizing in coming months. J.P. Morgan Chase expects to layoff additional employees this week after releasing about 6% of its work in November 2007. Lehman Brothers, Morgan Stanley and Citicorp have also recently released employees. Despite the high income stereotype of Wall Street, not all of these people can afford a layoff. Many of these workers live paycheck to paycheck, just as in other industries. Our article “Surviving a Layoff” with practical tips on basic financial planning during a job change is accessed as often by Wall Street area workers as in any other part of the country.

In addition to the challenge of making ends meet without a paycheck, these employees now face the added cost of paying for their own health benefits until they land another position with employer-paid health care. These employees have the choice of keeping their existing health plan through COBRA or enrolling in alternate coverage.

Most of the lower paid Wall Street workers living in New York State or New Jersey will find few affordable health insurance alternatives due to restrictive insurance laws in those states. The simple and inexpensive type of short term medical insurance used to fill gaps between jobs is not available in either New York or New Jersey. COBRA coverage and similar alternatives are expensive – more than $1,200 per month for any type of family coverage. Those who opt to go without any coverage may compound the problem by triggering a little-known provision in federal law that requires them to satisfy a new six month waiting period even after their new employer-provider health insurance is in effect.

A smaller number of Wall Street executives commute to the city from distant suburbs. Residents of Connecticut, Rhode Island and Pennsylvania will have it easier during their layoff. Not only will these workers get a temporary reprieve from the daily commute to Manhattan, they will also find that there home state of residence makes a wide range of temporary health insurance options available at a fraction of the price paid by their NJ and NY neighbors. Web sites like MedSave.com list high quality short term major medical plans on a state by state basis. The cost is under $400 per month for family coverage in most parts of the country – a manageable issue for most households.

The difference in the cost of health insurance - $400 vs. $1,200 – means a whole lot more when you are out of work and trying to make ends meet until the next secure job comes along. We believe that is past time to tell the legislatures in New York and New Jersey that their residents need the same options as their neighbors in surrounding states.

Utah health insurance reform

2008-03-21T01:51:00.000-07:00

MedSave.com supports these health care reform bills that were signed by the Utah’s governor this week:
* HB47 authorizes the Utah Department of Health to adopt standards for the electronic exchange of medical records.
* HB326 allocates almost $5 million over two years to ensure Utah's Children Health Insurance Program (CHIP) will cover all eligible children who apply. In the past, kids have been turned away because of lack of money.
* HB364 requires state departments of Education, Health and Workforce Services to promote enrollment in CHIP, Medicaid and another state program that subsidizes private insurance.
* HB301 requires the insurance industry to cover more people who were previously considered uninsurable.

The currently available and affordable short term medical insurance plans will continue to be available, as well as expended eligibility for the more expensive universal health insurance plans.

PA health insurance reform

2008-03-19T09:49:00.000-07:00

A message to Pennsylvania Governor Ed Rendell: Making more cheap health insurance at taxpayer expense is not the answer.

Over half of the uninsured in Pennsylvania are between the ages of 24 and 35, are generally healthy and come from middle income households. They will be uninsured for less than a year, on average, and will find coverage without government help, thank you very much. If they really wanted health insurance coverage, they could find it at a price of their morning lattes at Starbucks. MedSave.com, a leader in low cost health insurance nationwide, lists more than a dozen high quality health insurance plans priced well under $200 per month in Pennsylvania for this age group. The Kaiser Foundation, the U.S. Census reports, GAO publications and private insurance industry studies consistently show that availability and affordability are not primary obstacles to coverage in Pennsylvania.

Take a clue from the state’s CHIP program to see that increasing public funding does not result in a proportional increase in the number of people covered. The state’s needy already have adequate coverage through your welfare programs and those with chronic medical conditions need your help with managing the high out-of-pocket cost of their care, not with finding health insurance.

If you really want to increase the number of insured Pennsylvanians to satisfy your powerful health care industry backers (although we are not convinced this is even a worthwhile goal), then simply require residents to show proof of coverage of health insurance coverage in order to gain employment or qualify for any type of government program or to receive a tax refund. You would accomplish a whole lot more for a lot less public expense.

NJ introduces harmful health insurance proposal

2008-03-17T06:59:00.001-07:00

New Jersey’s legislature is considering pulling the trigger again. Individual residents will be the repeat victims. More than a decade ago the lawmakers took an ill-advised law that dictated the coverage to be included in all New Jersey health insurance policies. In effect, this consumers options to about six choices, generically labeled, “Plan A”, “Plan B”, “Plan C”, “Plan, D”, “Plan E” and “HMO”. More recently Health Savings Account options were made available. The intent was to simplify the selection process for New Jersey residents who were not smart enough to make intelligent decisions when buying their own health insurance. The legislative initiative was a disaster.

In the years since this restrictive legislation was passed, New Jersey soared to the highest health insurance prices in the nation. Most insurance companies withdrew from the market and those few that remained do not even advertise their products or employ agents to sell them. The number of uninsured in New Jersey is among the highest in the nation, despite the state’s relatively affluent population. The uninsured are typically middle income who could easily afford health insurance in most other states.

Many New Jersey residents hoped that lawmakers had learned a lesson and would refrain from further radical attempts to regulate the market. But apparently the legislature is poised to pass additional restrictive legislation that would require every New Jersey resident to buy health insurance. Despite strong adverse public opinion and the lack of success in other states hat have tried similar measures, the law is promoted by powerful health care industry and big business lobbyists. The health care industry would benefit from expanded insurance as an additional source of funding. Employers would benefit because the pressure to provide group coverage would be reduced.

The bill will be revealed today – Saint Patrick’s Day, according to an article in The Philadelphia Inquirer. It appears that the luck of the Irish may fade for New Jersey residents.

States with free market health insurance approach have more affordable health insurance choices in 2008 than ever before according to MedSave.com, a company that specializes in low cost health insurance. None of these affordable health insurance plans are available to New Jersey residents. Many New Jersey residents feel that they should have the right to buy the affordable health insurance plans that are available to their neighbors in Pennsylvania and Delaware. New Jersey residents are encouraged to tell their legislators that the real answer is to avoid this drastic new legislation, remove the excess market restrictions and return to a free market system used in most other states.

It simply makes no sense to require New Jersey residents to buy health insurance while at the same time denying them the option of purchasing the most popular insurance plans at rates that are comparable to those available in the rest of the nation.

Spring Break Travel Requires Medical Insurance

2008-03-17T01:36:00.001-07:00

College students are not the only ones who get to enjoy spring break. March and April have become popular travel times for families across the country and adults who need a break from the long northern winters. The weather is mild and prices are low in some of the most popular destinations. International travel has become increasingly popular this time of year as prices for worldwide hotspots can be more competitive than some U.S. destinations.

Regardless of whether your destination is in one of the states or overseas, it makes sense to spend a few minutes to become familiar with the travel insurance options that are available for only a few dollars a day. If your trip is sponsored by an organization, then proof of medical insurance is often required before departure. Many people do not realize that their regular health insurance provides inadequate coverage while hey are travelling.

For short trips outside the U.S. Liaison International is the best choice. You can add complete trip insurance including lost luggage protection with Round Trip insurance. Coverage can be issued immediately for as short as five days. The cost for a short trip is typically under $20 per person.

For trips within the U.S. any of the reputable short term medical insurance plans listed at short-term-medical-insurance.com or MedSave.com will provide immediate emergency coverage while you are travelling. Unlike other insurance plans, these policies provide the same coverage throughout the United States, with any doctor or hospital and do not require the use of a network provider.

Another approach is to add supplemental coverage like 24 Hour Accident insurance from Value Benefits. This overlaps the primary health insurance and provides additional cash to cover expenses incurred in the event of an unforeseen medical problem. This coverage applies at home as well as while travelling.

The Group Insurance Myth Exposed

2008-03-15T02:59:00.000-07:00

The myth of the price efficiency of group health insurance persists despite overwhelming evidence to the contrary. Another major news agency published an article that said purchasing health insurance “in bulk”, through employers or small business associations, would certainly save us money. Past presidential candidates have even cited the potential savings of group health insurance pools in their campaign platforms to control health care costs. The Bush administration previously supported this approach during the past presidential election but backed off after they learned that the market facts do not support this conclusion. Some organizations continue to push for group insurance pools for political reasons without supportive economic data. The Des Moines Register reported this week at http://www.desmoinesregister.com/apps/pbcs.dll/article?AID=/20080315/NEWS/803150335/-1/NEWS04 that some politicians contnue to support an program that allows small businesses to purchase group health insurance through larger associations despite more than a year of evidence tht few employers see value in such an approach. Making more of this inefficient type of health isnurance available is simply not the answer.

The Kaiser Foundation, a leading source or research data on health insurance plans, reports that employers spend an average of $380 per month for single employee coverage and more than $1000 per month for family coverage.

How many individuals who purchase their own health insurance pay more than $1000 per month for family coverage? If you buy your own health insurance, how much doe your coverage cost in comparison to the published cost of group health coverage? Very few people - probably less than 5%, according to several health insurance industry sources – pay more than the amounts published by Kaiser for their individual health insurance. In fact, the average price of health insurance purchased by self-employed people and other individual customers is less than half of the cost of the insurance cited by employers.

How to individual buyers achieve such great savings that large employers cannot accomplish? A close look at fundamental economics provides the answer.

First, individual insurance is not subject to “mandated benefits” included in group health insurance. This means that individual buyers can customize the insurance for their specific needs. A 50 year old couple, for example might be able to trim $200 per month from their health insurance premium because they no longer need to purchase coverage to cover maternity expenses. On the flip side, a younger person may find insurance that is age-rated to reflect the lower medical risks of their age group. By customizing the coverage to their specific needs, individual buyers achieve lower pricing than is available to group insurance buyers. Mandated benefits that may be important to include in coverage for “the masses” may not apply to individual buyers.

Second, individuals have proven to be more resourceful shoppers. Web sites like MedSave.com specialize in low cost health insurance. One of the primary methods is to simply purchase insurance that expires after a period of time – usually 6 to 36 months. This short term medical insurance is priced at 25% to 40% less than equivalent coverage that has longer renewability provisions. Individual buyers know that they will re-shop health insurance every year and that there is a high probability that long term guarantees are not needed because they change insurance plans more frequently.

Third, there is a wider range of coverage amounts and premium pricing available to individuals. In the past, all health insurance policies provided about the same amounts of maximum potential benefits. Now with the expansion of limited benefit health insurance policies, maximum coverage is available, for example in amounts from $50,000 to $5,000,000. Other policies offer the option of limiting the amount of specific coverage. For example, some low cost policies provide a benefit of $75 for a doctor’s office visit or $1000 per day for hospital coverage. This may not cover the entire amount of the medical cost, but it certainly makes the insurance much more affordable. The trade off means that more low priced insurance options are available to the individual buyers can select a plan that fits their budget.

Fourth, the individual health insurance markets have largely embraced the Internet to make pricing immediately available to everyone. Group health insurance, in contrast, is still priced by manual efforts of human underwriters. It is very difficult or sometimes impossible to compare pricing data across a large number of insurance carriers. The pricing of group health insurance – and therefore the market itself - is simply less efficient than the individual insurance market.

Finally, group insurance is required to cover everyone, regardless of health problem. Individual health insurance is designed for specific risk classes. Most people qualify for preferred risk classes. Those with serious ongoing medical problems are typically routed to state high risk pools where the costs are subsidized with public finds. These high risk plans emphasize managed care approach for known medical conditions rather than insurance for unknown medical costs. Again, the net result is that the overall price is lower for the majority of buyers and the only risk of the few who face higher risks are spread among a larger market.

The net result is that individuals have proved to be more efficient shoppers of their own health insurance than their employers and their state legislators. The basic economic principle that market efficiency increases as market restrictions decrease proves to be valid once again. Most individuals can purchase high quality health insurance for about $200 per month and family coverage is still available for under $500 per month.

Amigo Medical Relaunched

2008-03-13T19:19:00.000-07:00

HCC Life HealthCare Options, a division of HCC Life Insurance Company, announced the availability of a new short term medical insurance product designed for individuals in need of health insurance for up to 12 months. Called Amigo Medical, the product is available in both English and Spanish. Professional service is provided in English and Spanish by representatives at the World Service Center, located in Indianapolis, Indiana.

Underwritten by HCC Life Insurance Company, rated A+ (Superior) by A.M. Best, Amigo Medical is currently available in Alabama, Arkansas, Arizona, District of Columbia, Illinois, Iowa, Louisiana, Michigan, Missouri, Ohio, Pennsylvania, South Carolina, Texas and Wyoming. Additional states will be added throughout the year.

Amigo Medical may be purchased through licensed health insurance professionals and online at MedSave.com.

Amigo Medical offers a solution for individuals transitioning between jobs, new employees in eligibility waiting periods for group benefits, recent college graduates or students no longer eligible for coverage on their parents' plans. It is also an option for the unemployed, self-employed, individuals seeking an affordable alternative to COBRA, and those who are awaiting Medicare eligibility.

"As a company, we saw a growing need for a product like Amigo Medical," said Betsy Brougher, Vice President of HCC Life HealthCare Options. "There are still too many people living in the United States without some type of health insurance. And we are proud to be one of the very few companies to take a proactive position in recognizing the need to offer products in a language accommodating to the millions of Spanish-speaking people living in the United States."

For information about HCC Life HealthCare Options and the Amigo Short Term Medical Plan, please visit MedSave.com.

About HCC Life:
For more than 30 years, HCC Life Insurance Company has been an industry leader in medical stop loss and excess lines coverage. HCC Life, an Indiana domiciled insurer, has offices in Atlanta, Boston, Dallas, Indianapolis & Minneapolis and writes over $750 million dollars in premium annually. HCC Life Insurance Company is rated an A+ (Superior) for financial strength by A.M. Best Company ratings services. All HCC Life products are backed by the financial stability of our parent company, HCC Insurance Holdings, Inc. (NYSE: HCC).

health insurance after a layoff

2008-03-12T02:54:00.000-07:00

One of the primary uses of short term medical insurance is to provide affordable coverage for people laid off from their jobs while they transition to new employment. The economic issues were recently covered in Washigton’s Medill Report http://news.medill.northwestern.edu/washington/news.aspx?id=82463. The article concludes by saying that resourceful people find other sources of affordable coverage but does not name short term medical insurance as the choice of most people in this situation.

A consumer friendly report titled “Surviving a Layoff” was recently updated at MedSave.com to help people make smarter decisions about benefits when changing careers.

health insurance rates decrease for healthy applicants

2008-03-12T02:36:00.000-07:00

Two commercial health insurance carriers, Golden Rule and Celtic Insurance, announced rate decreases in some markets effective April 2008 and one carrier International Medical Group announced that it will keep rates set in early 2006 through September 2008 on its international medical insurance. These announcements posted on the News page at www.MedSave.com came amid an overall trend of medical cost inflation. So why do these insurance plans buck the price trend? We only know that rates are set based on past and projected claims in accordance with each state’s insurance laws and we can presume that these insurers had lower than expected claims in specific geographical markets and among certain age groups.

All of these plans are medically underwritten, meaning that that only healthy people are admitted. These types of plans are under fire as public sentiment moves toward universal coverage but there is no doubt that underwritten plans are a good deal for the people who qualify for them. Proponents of these plans say that the lower rates for healthy and “preferred risk” applicant promotes healthy lifestyles since about 80 percent of our nation’s health care costs are directly attributable to basic manageable lifestyle choices like smoking, over-eating, poor nutrition, lack of exercise and stress reaction.

For now, most states allow the health insurance rates for healthy applicants to be substantially lower than for those with medical problems and so it makes sense for consumers to shop for an insurance plan with restictive eligiblity requirements.

The eligibility requirements for each short term medical insurance vary at www.short-term-medical-insurance.com are listed on the application page and so it makes sense to compare prices and requirements for a few different plans.

Shame on Blue Cross / Blue Shield of Michigan

2008-03-07T12:53:00.000-08:00

Michigan residents should be outraged at the conduct of Blue Cross / Blue Shield of Michigan that pulled out every political stop to push new laws known as P.A. 141 through the legislative process. The bill would increase profits to Blue Cross / Blue Shield, a tax exempt company, and eliminate some of the lowest cost health plans now available in the state, including many of the plans listed at www.short-term-medical-insurance.com .

The law is opposed by the Michigan Attorney General’s office, AARP Michigan, the Consumers Union, the Area Agencies on Aging, the Michigan Chamber of Commerce, the United Auto Workers, and many newspapers across the state. Blue Cross / Blue Shield of Michigan countered with a massively expensive media campaign to sway public opinion on the issue. See http://www.putmipeoplefirst.com for more information on the growing public opposition to this bill.

This incident is the latest in a series of actions by Blue Cross / Blue Shield member companies across the country taking moves that are clearly not in the public interest, but benefit only the corporate interest of the Blue Cross / Blue Shield health insurance companies

Americans are Uncommitted on Uninversal Coverage

2008-03-05T17:27:00.000-08:00

A recent poll conducted by National Public Radio, Kaiser Family Foundation and Harvard School of Public Health found that Americans are divided as to whether we should require the 1 in 6 uninsured Americans to buy health insurance. The results of the poll were reported in “Morning Edition” 2/29/08.

While 93 percent of those polled said the issue of uninsured is “serious”, there is less agreement on the approach to take to tackle the problem. About half of Americans support the idea of using government subsidies to get coverage for the uninsured.

Opponents say the proposal is similar to attempting to solve the issue of homelessness by requiring everyone to buy a house.

Bottom line is that while we like the fuzzy warm concept of “universal health coverage”, over 30 million Americans without health insurance coverage are unwilling to spend even $100 per month of their own money to buy basic health insurance even when offered to them and less than half of us think that the government should help with that cost.

Indiana's candidate confused on health care economics

2008-03-03T13:46:00.000-08:00

The myth that it is cheaper to buy health insurance in pools continues despite years of evidence to the contrary. This quote from a newspaper in Indiana talks about a candidate Jill Long Thompson's views on the topic:

"Transforming healthcare policy in Indiana by changing state law to encourage businesses and individuals to pool to buy health insurance, vastly reducing its costs for individuals and smaller sized businesses. This proposal would expand coverage for uninsured or underinsured Hoosiers. It would also positively impact business by reducing overall costs - not only by lowering prices by "bulk purchasing" health insurance, but also by reducing the number of uninsured in Indiana."

There is absolutlely no evidence that in Indiana or in any state that allowing individuals to buy group insurance increases the number of insured or lowers costs. In fact it is clear that group insurance is significantly more expensive that individual insurance in Indiana and in most other states. "Bulk purchasing" savings are only a political myth.

Virtually every cost saving initiative with national programs like MedSave.com or here at www.short-term-medical-insurance.com are based on individual health insurance initiatives, not group or association policies.

Another part of the same article talks about how the current governor's inaction on poor academic performance is unforgivable. We suggest that Jill Long Thompson's lack of knowledge on this basic health economic principle is equally unforgivable.

presidential candidates' updated position on health care

2008-03-03T07:42:00.000-08:00

The Nation Review does a great job summing up the three candidate positions on health care reform at http://article.nationalreview.com/?q=NTQzOGMwN2I1Zjc1ZjM1OWZiNTQxMzM2NTIxYjZmNzk=

Clearly McCain's position is do-able and would help. But is it enough?

Clinton's position is politically unrealistic and there is no reason to beleive that her results would be different than when she tried under Bill's presidency. Where are the indications that she learned from that failed attempt?

Obama does not seem to have a real grasp of the economic issues here. We have to conclude it is just political rhetoric. Even his own support groups are concluding that if he becomes president, health care reform :just won't happen". See discussion of the New York Times article from February 4 at a university-based newspaper at http://media.www.dailytexanonline.com/media/storage/paper410/news/2008/03/03/Opinion/Lets-Talk.Universally-3247336.shtml.

Meanwhile, commercial health insurance enroller MedSave.com is launching a publicity campaign to promote the fact that universal health insurance is here now, available and affordable to most Americans. Plans like those at short-term-medical-insurance.com could solve many problems if they were simply prromoted more efficiently. Yet we have no public or private economic incentives to promote low cost limited benefit solutions. We simply need to get the politicians out of the way to acheive widespead coverage. We know that 100% coverage is not doable under any real life circumstances but we also know that big improvements can be made without big cost or major political action.

Physicians praise simple insurance coverage

2008-03-03T06:07:00.000-08:00

We applaud American Medical News for reporting that transparency in health care is "hot" while proposed reform mandates are dead on arriaval. Full disclosure of facts, and not the push for more legislation, will be the effective medicine for improving our health care system.

Physicians want their patients to have simple easy to undersand health insurance coverage.
"There has been a lack of clarity about health plans' co-payments, deductibles, coverage, physician networks and other issues, so physicians backed measures to reduce this confusion, said Susan Strate, MD, immediate past chair of the TMA council on socioeconomics and a surgical pathologist in Wichita Falls, Texas". Short term medical insurance (STM) avoids these pitfalls by providing clear simple universal coverage with any medical provider in the U.S. STM is generally considered to be simple and generally problem-free because it avoids these entanglements.

UA student praises merits of individual health insurance

2008-03-03T05:38:00.000-08:00

University of Alabama senior Stephen Spiehler joins the cause to spread the word that individual health insurance is both available and affordable to most Americans. Short-term-medical-insurance.com has been committed to this cause since our inception and we share the vision of the future put forth by Spiehler when individual health insurance policies will be the norm for the majority of Americans. Currently, over 98% of individual insurance policies last only a short period of time before the individual selects other coverage. A typical policy lasts les than two years. Short term medical insurance policy can currently last up to three years in most states but these limited term policies are less expensive than continuously renewable coverage. See more at http://media.www.cw.ua.edu/media/storage/paper959/news/2008/03/03/Infocus/Ua.Senior.Examines.Insurance.Market-3246600.shtml

health insurance cost inflation

2008-03-02T18:52:00.000-08:00

Health care costs are predicted to double in the next decade, to almost a third of our gross national product, according to government estimates issued last week. These forecasts are made with or without national health care reform. Political changes are not likely to significantly affect this trend.

This means that a short term medical insurance policy that costs $100 now will cost $200 per month by 2017. An average person's wages will not double over the same period, so health care and health insurance will become slightly less affordable over the next decade.

the case against universal health care

2008-02-29T15:05:00.000-08:00

Brian Schwartz of the Hawaii Reporter makes a great point about universal health care at http://www.hawaiireporter.com/story.aspx?4904d58c-6296-45df-83ea-73b0b3f13f98 .

We echo the point that adapting the concept of universal health care is not a panacea for our problems. We will likely need to be reminded that covering the cost of our care and ensuring the quality of coverage available are much bigger problem issues than availability of coverage. Unfortunately these are the weaknesses of the universal coverage model.

state laws limit acces to affordable short term insurance

2008-02-29T12:01:00.000-08:00

Many people are surprised to learn that some states have laws that restrict citizens access to affordable short term medical insurance. Ten states have laws that restrict the use of short term medical insurance and four states (New York, New Jersey, and Vermont) do not allow short term medical insurance at all.

California, Colorado, Connecticut, Idaho, Maine, Maryland, Michigan, Minnesota, New Hampshire, and North Dakota all have laws that require a person to go without coverage for a period of time ranging from one day to six months before they are eligible for a subsequent policy. The intent was to push people into more expensive renewable coverage, but this option is neither appropriate nor available to everyone.

See more detail on the restrictions at http://short-term-medical-insurance.com/press%20releases/how-long-can-I-use-short-term-medical-insurance.htm

We support the right of all people, regardless of their state of residence, to have the freedom to choose the insurance they think best suits their individual needs.

Short term medical insurance enrollment trends

2008-02-28T21:25:00.000-08:00

Peak months for short term medical insurance enrollments are May, September and December. May and September enrollments are attributable to college students and December is attributable to changes in employer-sponsored group insurance plans that usually run on a calendar year basis.

The next busiest time for enrollments, especially online, is Thanksgiving. The reason is not clear. Some industry people speculate that this is an opportunity for some families get to deal with lack of health insurance issues for their college-age or young adult children. An article titled "Thanksgiving Health Insurance Ritual for College Students" describes this phenomenon.

Most enrollments take place in the first and last week of each month.

health insurance for young adults

2008-02-25T13:31:00.000-08:00

Young adults often have little relevant consumer education at the time they need to buy their first health insurance policy. A new series of articles for young adults will be published here this month that addresses the young adult market. The first article published at
http://www.short-term-medical-insurance.com/press%20releases/Primer-on-health-insurance-shopping.htm covers four key points when shopping for health insurance. The articles are written in a jargon-free "down to earth" tone specifically geared for this age group of consumers. The articles take the unique approach of including what the reader needs to know rather than what they want to hear, as is so common in many popular financial media publications.

short term life and dental insurance

2008-02-22T09:01:00.000-08:00

When changing from a group health plan to individual short term medical insurance, many people consider providing temporary replacements for their group life insurance and group medical plans. The problem is that while medical insurance provides significant immediate value, the value of dental and life insurance plans accrue over time. In other words, if we were to calculate the real benefits of a life insurance or dental coverage, it would be more 12 months after the policy started that it is today. A significant part of the price of the insurance reflects the benefits that will accrue in future years rather than immediately. This is sharply different than short term medical insurance. For this and other business reasons, there is no insurance product called “short term life insurance” or “short term dental insurance”. Of course you could use regular dental insurance and life insurance, but if the intent s to use them of only a short time then the consumer is effectively overpaying for the coverage that they need.

A better approach is to consider the use of supplemental life and dental insurance that can overlap the period without group coverage and continue in force to provide additional benefits even after new group insurance is in place. These policies are made to overlap and pay benefits in addition to any other insurance.

Fortunately it is easy now to get immediate supplemental life and dental insurance online. A company called Guarantee Trust Life Insurance issues up to $250,000 term life insurance coverage to most people with an online application and no medical exam. A new group of innovative individual dental plans for 2008 like Secure DeltalOne from Health Plan Administrators Inc. offer more coverage options and more reasonable prices than dental plans of the past. The best part is that these insurance plans, even in combination, are only a fraction of the price of the short term medical insurance so they won’t break the insurance budget. In the end, this approach provides the best value in immediate protection as well as making a wider range of coverage options available for the future.

Less coverage is the answer

2008-02-21T07:51:00.000-08:00

When politicians like Senator Obama talk about providing top quality health coverage to everyone, little is said about the cost. Obama’s plan may be the most costly idea of all the proposals. His specific plan is to offer the same health benefits that members of Congress have now to everyone in the U.S. on a universal basis! A consensus of economic opinion is that would cost about 40% of our GNP or, in other words, 40 cents out of every dollar we see would be allocated to provide this type of universal health care. Let’s assume for the sake of discussion that this estimate is much to high and that we could really get the job done for 33% of GNP. The next logical step is to ask how many families or businesses are willing to spend a third of their gross income on health care? That means that average healthcare costs for a household with $60,000 total income would be $1,500 per month. We would see very few takers for this plan and, ultimately, is why these politically ideal plans will not be successful.

So what is the answer? Simply provide less health coverage. Even if we cannot provide the absolute highest level of health care to everyone in our nation, we certainly can provide solid fundamental care across the board at a fraction of the cost.

It is no coincidence that low cost limited benefit insurance plans are gaining in popularity. Secure Lite Short Term Medical, for example, provides coverage with any doctor or hospital but adds the words “up to $xxx” for each type of covered medical treatment. The coverage lasts up to 12 months. By simply limiting the coverage to a to a reasonable length of time and dollar amount that covers most but not all of the possible bills, we can provide health insurance coverage to most people at a reasonable cost. It is not rocket science but is an answer that works for most people most of the time. Sure, this is not a perfect solution in an ideal world, but it works well here and now and this option is available immediately while we continue to debate other political options!

Pricing health insurance to reward healthy behaviors

2008-02-20T06:27:00.000-08:00

A well-written post by Eric H. Schultz, president and CEO of Fallon Community Health Plan in Boston at http://www.wbur.org/weblogs/commonhealth/?p=376 asks the question "Can — and should — health insurance be a positive agent for driving healthier living and producing better outcomes?". This wotic of often considerer on this Blog, since our health plans at http://www.short-term-medical-insurance.com/ have been financially rewarding healthier applicants for decades. Short term medical insurance (STM) is not even available to those with serious ongoing medical conditions. The intent is not to make social change but rather to effectively manage costs both to the insurer and ultimaely to the consumer. We know that that there is an acceptable way to use tiered pricing of health plans (as with STM policies) and unacceptable ways that have failed at other health plans (see a recent example in an earlier post this month). Yet despite the pricing differences th have existed for decades, there is no indication that tiered pricing in the individual insurance market has any social effects. This is likely due to the low market share of this coverage and the fact that the majority of people are covered by group health plans. While we admire the intent, we are yet unconvinced that tiered pricing in group health plans will ever be widely accepted on a legal or social basis.

Canadian Values Won't Work Here

2008-02-19T02:26:00.000-08:00

This week public television aired an interview with President and Chief Executive Officer of Standard Life Assurance Company of Canada Joseph Iannicelli. His company is a major provider of financial services and employee benefits to Canadians. Mr. Iannicelli argued the point that leaders are born, not made. He admitted that courses and training in leadership can have some effect but that the leadership genes are either there or they are not. I personally found the idea repulsive from a values-based perspective.

Fortunately for us, almost all American business leaders would strongly disagree with Mr. Iannicelli. In fact our business and economic model is based on the premise of developing leadership within the ordinary gene pool of that group we call our employees. We believe in individual ingenuity and the power of each individual to aspire to the greatest potential to which they may be able to achieve. When we work our way to the front of the line, no one tells us “sorry that’s all there is; this is the end of the line”.

It struck me that this interview was an example of why the fundamental Canadian systems of business management of business management do not work here in the United States and why their health care system would be equally objectionable. It is not our point to get into a discussion of sociology, but it seems obvious that anyone who wants to avoid a Hillary Clinton style disaster in a proposal to reform our health care system must pay attention to the fundamental differences in beliefs between Americans and those people around the world who have adapted to a universal health care system. I just can’t see us accepting it, and I hope we never do. It would be a great defeat for the American free spirit.

Whether managing a business or managing a national health care system, one method that will not work is to say “you just don’t have what it takes”. I am proud that our health insurance plans allow a patient to pursue the best course of treatment with any provider anywhere in the country without a limit on cost or the probable outcome based on my genetic makeup.

In short, I am glad that neither my career nor my heath care are managed based on factors outside my personal control.

The Value of a Certificate if Creditable Coverage (Part 2)

2008-02-18T05:15:00.001-08:00

If the value of a short term medical insurance lies primarily in the certificate of creditable coverage that is included as a legal requirement as part of all STM policies, then doesn't it make sense to buy the least expensive highest deductible minimal benefit STM that we can find. Probably not; but the explanation for this type of thinking lies more in the psychological realm than in mathematics.

In the example used in part one it was easy to calculate a tangible value of the STM policy into tens thousands of dollars. But this example is not common of the way insurance usually works. The primary benefit of insurance is for the intangible or unexpected costs. When we compare a tangible known cost (like the knee surgery in the example) with an intangible unpredictable medical cost, the latter fades in comparison.

Our mind naturally values the tangible cost much more than the intangible. Yet the intangible risks remain the same as before. In other words the value of insurance is based on a factor completely unrelated to the assumed knee problem. Remember that the STM policy is not paying for the knee procedure and its cost is based only on the possibility of unexpected and unpredictable expenses.

The human brain automatically enlarges the value of the tangible and diminishes the value of the intangible. Some neurologists link this behavior with a pre-historic survival wiring built into our brain. In a life or death situation, it makes no sense to weigh the cost of an intangible future event if we don't live past today to see the benefit of our "wise" decision based on logic and probability. If we relied solely on logic, the decision of the best STM should be made independently of the knee issue. Obviously the insurance has value other than the value of the Certificate. Yet scores of examples show us those individuals facing the need to obtain a Certificate of Continued Coverage shop for only the least expensive short term medical insurance. Not logical, but perfectly normal considering the neurological makeup of our human brain.

The Value of a Certificate if Creditable Coverage (Part 1)

2008-02-18T05:13:00.000-08:00

Often the most valuable feature of short term medical insurance is the Certificate of Creditable Coverage that is automatically issued by law at the termination of every STM policy. Under federal law, every employer provided policy must cover the pre-existing conditions of a new enrollee who has proof of continuous coverage in the form of a Certificate of Creditable Coverage. This simple piece of paper can be worth thousands of dollars and could easily mean the difference between financial survival and financial ruin for many people.

Take the fairly common example of a healthy active middle-aged weekend warrior type of guy who needs orthopedic knee surgery. His old sports injuries are causing increasing pain and he hopes to schedule an arthroscopic procedure as soon as possible. He suddenly changes employment for any reason; or perhaps his spouse who carries medical insurance for the couple changes her employment. In either case, any new group health insurance plan has a waiting period before benefits can begin so there is risk that the proposed surgery will not be covered. Going ahead with the treatment could be disastrous; the cost for even a simple knee procedure is likely over $20,000. If there is a gap in employment between jobs, the waiting period without coverage will be longer. If the gap in coverage is longer than 62 days then we are just out of luck - there is no benefit provided by either the old or new health insurance company for the pre-existing condition. The new waiting period where treatment could not be covered could range from six months to several years.

But the solution is easy - if he carries short term medical insurance, his knee surgery can be covered from the first day of his new group coverage. In fact, the trend is to schedule this surgery on a Thursday or Friday and be back in work by the following Monday.

In other words, the simple solution of taking an STM policy at a cost of a few hundred dollars gives this fellow in our example a financial benefit of tens of thousands of dollars. In this example, it is easy to place the tangible value of the policy almost exclusively on the Certificate of Creditable Coverage.

lowest price short term medical insurance

2008-02-16T18:19:00.001-08:00

An insurance company would not be expected to have the lowest priced policy in one type of medical insurance and also have a reputation for the highest quality most comprehensive coverage in another medical in another type of medical insurance. Lowest price and highest quality normally do not go together in combination for any type of product. But that is what a growing number of online shoppers are finding at Celtic Insurance (www.celticenrollment.com). Celtic Insurance has long been considered the highest quality coverage for long term individual and family coverage, especially for high deductible plans like Health Savings Accounts (HSA). But now the company is growing in popularity due primarily to price. The short term coverage does not have the same reputation for best quality of coverage but for short term medical coverage price is more often a buyer’s primary consideration.

Rates for a specific type of coverage are based on three factors: age, sex, and location. Of course rates are also affected by the coverage selected including policy deductible and level of co-payment. There is no assurance that rates for short term medical insurance are set in the same pattern as long term renewable coverage. As a result, it is possible that Celtic could be the lowest priced coverage for one person and not another.

Secure STM administrator cited for excellent customer service

2008-02-14T08:23:00.000-08:00

One of the nation’s best short term medical insurance administrators SASid was cited in a new book called “Results That Last”. The book shows business managers how to build excellence into their organization, specifically focusing on how a manager can ensure that a business provides consistently great customer service experience for its clients. A letter from one satisfied insurance client is reproduced in the book. It is interesting to not that the praise is expressed not for any heroic effort by SASid, but rather because the company consistently provided meaningful responses whenever he called SASid with a question about his policy!

SASid administers several of the nation’s most popular short term medical insurance policies like Secure STM and Secure 12x3 STM at http://www.short-term-medical-insurance.com/.

Cuomo misques on medical consumer protection

2008-02-13T17:35:00.000-08:00

Today the New York attorney general Andrew Cuomo announced plans to sue UnitedHealth Group Inc. as part of an investigation into the way the health-insurance industry sets payment rates for hospitals and doctors outside of their networks. Sixteen of the nation’s largest health insurers, including Aetna Inc., Cigna Corp. and Wellpoint Inc.'s Empire Blue Cross Blue Shield unit.

Mr. Cuomo said that he believes that the reduced payments for out-of-network doctors and hospitals are part of an “industry-wide scheme perpetrated by some of the nation's largest health insurance companies to defraud consumers”.

Consumer advocates traditionally take the opposite stance and consider preferred provider networks to be a positive force promoting medical prices in an otherwise unregulated medical pricing system. Members of the health insurance industry responded by saying that Mr. Cuomo misunderstands how doctors and hospitals charge out-of-network providers and believe that the suit is largely a publicity stunt by the attorney general. Without the medical cost database maintained by Medicare and insurance industry PPO organizations, consumers would have no idea of the conventional price of a specific medical service.

The insurance industry’s position is backed by the fact that even the lowest out-of-network provided are higher than the amounts paid by the government Medicare system – the largest health care payer. By comparison, the insurance PPO payments are generous to providers and consumers.

Fortunately the short term medical insurance industry sidesteps the PPO issue entirely. Payments are the same regardless of a provider’s network affiliation. All of the plans at http://www.short-term-medical-insurance.com/ provide coverage at the usual and customary rate for each geographical market area in the United States.

Regardless of whether using a short term medical insurance or a regular medical insurance policy, patients should always ask whether their medical provider will accept their insurance as full payment after the patient pays the cash deductible. When this issue is addressed in advance of treatment, all risks are avoided.

If Mr. Cuomo really wants to help protect consumers, it would be far more effective to endorse a simple law requiring medical service providers to accept the reasonable and customary charge for a service as determined by private PPO systems. This provision has already been part of the Medicare system for years. Experience proves that this simple provision does not adversely affect the care or finances of patients.

Improve policyholder satisfaction with better communication

2008-02-13T10:13:00.000-08:00

When a short term medical insurance customer is unhappy, it is usually due to a lack of coordination and poor communication between the policyholder and a service provider within the insurance company or in the health care field. Improving customer satisfaction is really about reducing anxiety. After all, no one will ever be thrilled with the prospect of receiving and paying for their heatth care. But we must focus on reducing unnecessary policyholder anxiety and avoid larger problems through clear communications.

When a claim is not processed, for example, the most likely cause is that no one submitted the clam to the insurer. The policyholder assumed that that the doctor's office submitted the bill; the doctor's office holds that it is the patient's responsibility. No one gets paid and both are frustrated. This scenario describes about four out of every five claims problems.

Another common issue is when a policyholder wants to know in advance if a proposed medical service will be covered under the policy: the insurance company says they will not comment on a theoretical claim until they can review the facts and medical records. The doctor says they do not know if the claim is covered but they will submit it and find out (passing blame on the insurer and the financial risk to the insured). Both parties prefer to "hope" tht the treatment will be covered rather than take responsibility for making the determination on their own. No one takes the time to say "Based on your description of the situation, this procedure is a treatment for a pre-existing medical condition that is not covered by your policy. We need to discuss alternate methods of paying for the treatment proposed".

OnlineAdviser service at MedSave.com provides this type of bridging that can help connect the missing communications between service providers. As a provider of advice only, the focus of this service is on clear communications that can help reduce problems for policyholders and medical providers over the long term. This service has addressed an estimated 50,000 consumer questions about short term medical insurance worldwide over a period of more than a decade. As a result, MedSave.com has become one of the most trusted sources of short term medical insurance in the U.S. and the enrollment support endorsed by http://www.short-term-medical-insurance.com/.

lesson learned from a failed wellness program

2008-02-12T01:45:00.000-08:00

Insurance companies consider obvious health indicator factors like smoking, obesity, and cholesterol when setting health insurance premiums. There is little question that these factors are closely linked with long term health costs so this is a sound actuarial practice when utilized in the right context balancing individual privacy and behavioral management skills. Estimated costs for these risk factors are built into our individual health insurance premiums whether we know it or not. Federal law now allows employers to build behavioral health factors into group health plans as part of a wellness program.

When one company tried to incorporate these cost factors to an employee wellness program, they went about it the wrong way. A news article describes the story of one employer, a heath care company, that proposed charging higher premiums for those with higher behavior risk factors. Employees strongly objected and the plan was dropped. Instead the employer now offers discounts for those who meet behavioral health goals like quitting smoking or lowering cholesterol.It is interesting that the net financial result is the same, yet one approach is palatable and the other clearly is not. Consider this example as a lesson for employee benefits planners.

By charging the same price for all similar state/age/sex applicants regardless of behavioral health factors, short term medical insurance premiums actually favor those with health risks. Yet the system is simple and draws little objection, partly because the premium rates are so low that cost pressures are not as significant as in other health plans.

health care planning for early retirees

2008-02-11T18:24:00.000-08:00

What is the best approach to health care planning for early retirees?

A Cigna executive published a white paper at http://cigna.tekgroup.com/images/56/The%20New%20Health%20Care%20Gap.pdf that basically says that planning for health care for a surge of baby boomer early retirees is a serious matter and that employers and the insurance industry have not yet responded.

It seems that good health care planning under the ideal circumstance could cost a client $10,000 to $20,000 a year less than poor planning in an unfortunate circumstance, so this could be a "make or break" issue for cleints considering early retirement.

Under the best case, an applicant within three years of Medicare eligibility could use a 12 month x 3 year renewable short term medical insurance. This would give the most liberal coverage at the lowest price if pre-existing medical conditions are not an issue. Unfortunately this type of extended coverage is only available in about half of the states. The list is included in the review article at http://medsave.com/articles/Review-of-Secure-12x3-STM.htm. This coverage would typically be priced well under $1000 per month for a typical couple at age 62-64.

At the worst case, in some states with highly regulated individual insurance like New Jersey the same coverage could cost several times more, perhaps more than $3,000 per month.