Individual Health Insurance

New 2010 HSA Contribution Guidelines

Here's another great fact about HSA programs - you can make your annual contribution into the account at any time throughout the year.  Many people contribute on a monthly basis to make it easy for budgeting purposes. However, if you just enrolled in November in a high deductible health plan you can still make the entire year's worth of contributions into your account and enjoy all the tax advantages that go along with having an HSA. (You must have coverage in place by Dec. 1 and remain covered through the following year.)

2010 provides individuals and families even greater opportunities to save for current and future health care expenses with new contribution amounts, deductibles and out-of-pocket maximums. In 2010:

• Individuals with an HSA program can contribute $3,050 and families can contribute $6,150 into their accounts. HSA holders age 55 and older can contribute an extra $1,000 for the year. 
• The minimum annual deductibles are $1,200 for individuals and $2,400 for families.
• The annual out-of-pocket maximums (including copays, deductibles and other amounts, but not premium) are $5,950 for individuals and $11,900 for families.

Remember, all the money you contribute into your HSA is tax deductible from your gross income and grows tax deferred. For more information on HSAs, visit the Celtic HSA Resource Center.

 

Open-Enrollment: A Good Time to Consider Individual Health

Economic times are tough, so lots of people are looking for ways to save money on their health insurance. Many companies need to save money, too, and they're shifting more of the costs of health insurance to employees. This may make group coverage more expensive for those who get coverage through their work.

Open enrollment, which is taking place now in most companies, is the perfect time to compare your group coverage with what's available to you in an individual health plan. Start by looking at the costs, benefits and eligibility requirements of your employer's 2010 group plan.

• Does your group health plan require your pay higher copays or higher deductibles in 2010?

• Is the amount you're paying for health insurance going up?

• Do you have the opportunity to enroll your spouse and children under your plan?

If you don't have access to affordable, adequate group health coverage, consider quoting individual health insurance. An individual health plan may offer you lower monthly premiums, more deductible choices, and options to cover spouses and children.

To find out if an individual health insurance plan might be the solution to the affordable coverage you need, explore the many resources at www.celtic-net.com and get a quote today!

Another Year of Growth for HSA Programs

In today's economy, health care affordability is on everyone's mind. That's why Health Savings Account (HSA) programs are a really smart and important consumer directed health care product. Combining a qualified high deductible health plan (HDHP) and a health savings account, HSA Programs offer you major medical coverage along with tax savings and more control over your health care expenses.

It seems their popularity is growing. According to the America's Health Insurance Plans (AHIP) annual census of its U.S. health insurance carrier members, 8 million people were covered by HSA-qualified HDHPs in January 2009, up from 6.1 million in January 2008.

And if you are considering purchasing individual health insurance, you'll see yourself in the statistics below:

• Enrollment rose to 1.8 million covered lives in January 2009, up from 1.5 million in January 2008
• Almost 92% of enrollees in HSA-qualified HDHPs were in PPO (preferred provider organization) products
• Based on the number of covered lives, 54% were male and 46% were female
• Of those covered under an HSA-qualified HDHP plan, 53% were aged 40 and above and 47% were below the age of 40

The statistics show that this plan is becoming more widely purchased by individuals and employees. The statistics help us understand that women, who traditionally use more preventive services, are finding the value in HSAs and making them fit their lifestyles. In fact, people of all ages are finding that this type of health plan can work for them. Your HSA bank can help with the math when purchasing a plan, and you can watch the savings really add up.

Source: AHIP January 2009 census released in May of 2009.

 

 

Individual Health Insurance Basics, Part 2

My last post went over some basic information about individual health insurance. This time I'd like to dig deeper into how plans are priced.

How much does an individual health insurance plan cost?
Cost is an important consideration when buying health insurance. Running quotes is the fastest way to find out what a policy might cost you. Generally speaking, a plan with more coverage will cost more than a plan with less coverage. You may find the benefits in an individual policy are simpler than in a group plan. And, there is usually a greater cost-sharing element. For example, you might have to pay co-payments, deductibles and coinsurance before the insurance plan pays any claims. But the more cost-sharing you are willing to take on, the less you pay for the insurance premiums.

Most people just want the peace of mind that they have coverage should they be diagnosed with a serious illness or have a bad accident. Many do not want or need an all-inclusive or very comprehensive plan because these tend to be more expensive. That's why a basic benefit plan works for many people.

Here are a few insurance definitions you might find useful:

Annual Plan Deductible: The dollar amount that the insured must pay out-of-pocket each year before the insurance company will make any benefit payments for claims.

Coinsurance: The percentage an insured is required to pay for a medical claim, after the co-payment or deductible. For example, if you choose an 80/20 plan, you pay 20% of the eligible covered amount and the insurance company pays the other 80%.

Copayment: The amount specified in your plan that an insured person pays to a provider for a specific health care service at the time it is received. For example, an insured may pay a "$35 office visit copay".

Out-of-pocket maximum: The maximum amount that an insured is required to pay under an insurance policy per year.

Visit Celtic's Individual Health Insurance Learning Resources page to learn more.

Will we still be covered?

The kids are grown and you and your spouse are finally getting the “just 15 minutes of quiet” you’ve been asking for all those years. Now what? It may be that dream you had of starting your own small business together. It’s probably safe to say your soon-to-be old employer isn’t going to let you stay on their group plan. Not a problem. There are many plans available in the individual health insurance market that may meet your needs.

You no longer need comprehensive coverage for your children but you may still want it for yourself and your spouse. Many plans have coverage that includes preventive annual screenings, well visits and prescription drugs. Many plans also include money-saving benefits like non-tobacco rates and/or preferred rates. A healthy lifestyle program may also be a plan feature that provides additional savings, such as cash back on annual gym memberships and fitness classes.

Another type of coverage that may fulfill your needs is a HSA program, which combines a qualified high-deductible insurance plan with a health savings account component. Created under federal legislation, HSAs offer a way to purchase a health insurance policy and save money tax-free. Contributions to your HSA account are tax deductible up to the lesser of 100% of your deductible or to the IRS allowed maximums. The withdrawals from your HSA account are tax-free when used to pay for qualified medical expenses. Your HSA money earns interest tax deferred and rolls over year after year. What you don’t spend on health care continues to grow as tax deferred savings until you reach age 65 at which point you can use the savings tax-free for medical expenses not covered by Medicare or for non-qualified expenses and only receive normal taxation.

With all the options available in today’s consumer market, you can venture ahead with your dreams of your own business without the worry of “will we still be covered?”

When Basic is Better

I recently planned a vacation - a glorious road trip spanning northern California's wine country, San Francisco, Big Sur and Los Angeles. Most of my online "legwork" was spent researching and comparing prices for rental cars. I had to pay attention to drop-off fees and parking charges, not to mention the considerable number of miles we were putting on the car. The range of car types and price points were astounding!

As much as I wanted to rent a luxurious trail-ready SUV or a fun, sporty convertible, we really couldn't afford it. And did we need heated seats, a sunroof, or room for seven people? We certainly didn't want to pay for these extra features we really weren't going to use. If we had kids in tow or truly needed the amenities and conveniences of a more expensive rental, I'm sure we could have shuffled our budget around to accommodate it. So we made our way with a sensible car that got us from point A to point B to point C - and had a rate that left us some money for souvenirs!

Health insurance is similar. Many people set out, as I did with the rental car, thinking about the features of a "fully-loaded" product. But when it comes to making the purchase decision, they simply don't need the extensive benefits and higher price tags that usually come with the more comprehensive plans.

That's why basic benefit health plans are so popular - they're reasonably priced with just the right amount of major medical coverage for hospitalization, Rx drugs, PPO office visits, and even preventive care. While these plans lack many of the "bells and whistles" of more comprehensive health plans, they have the important benefits that consumers need and the prices they shop around for.

The thing to keep in mind is that basic benefit plans require policyholders to cost-share (to pay additional deductibles for hospital visits and Rx drugs, for example) in exchange for low monthly premiums and essential major medical coverage when they need it. That's kind of like paying out of pocket for gas and supplementary collision insurance on a rental car that comes standard with A/C, power windows and satellite radio, right?

I'm happy to report our road trip was a great success! We really were quite comfortable traversing the coastal highways and bustling city streets in our sensible car. (All of the natural beauty was outside the car, anyway!) Not only did we have fun, but I felt really good knowing we saved as much money as we did. If only health insurance plans came with satellite radio...

Seeing the Value of HSAs

I recently was helping a friend who was considering purchasing a HSA qualified health plan. She is going into private practice after working for a number of years at a large law firm. She knows health coverage is important, but isn't sure if a HSA makes sense.

Information about Health Savings Accounts

After helping her with a HSA quote, she found a premium savings of about $100 a month compared to a traditional major medical plan. The extra $100 she saved on premium she could use to fund her health savings account. Her tax accountant, who helped her set-up her solo practice, said that was a really smart idea because the money she invested in the HSA could be deducted from her annual income tax. Plus, the money would grow tax free.

Coming from a group plan she was also used to having dental and vision benefits. She decided not to purchase any additional coverage and simply use the money in her HSA account to pay for those qualified medical expenses when the need arises. After viewing the complete list of qualified medical expenses she realized the HSA account would pay for a lot more than just dental and vision exams.

Consumer Direct Health Care that Works

My friend feels lucky, after doing the research and having our conversation she felt comfortable with an HSA. It's helping her stay within budget as she gets her practice up and going, yet provides her with important peace of mind.  

Want to find out if a HSA is right for you? Celtic offers a quick and interesting HSA presentation.

 

What’s on your mind?

Odds are health insurance wasn’t the topic of your last Facebook status update. After all, you’re young and probably pretty healthy. So, should you be concerned? Being covered for the unexpected things that happen in everyday life is important.

Today, it can be easier than you think to find an affordable individual health insurance plan with low monthly premiums to fit the budgets of those just starting new careers.

Deductibles, coinsurance, premiums... these aren’t just things you hear other people talk about. What you pay for the coverage you need depends on what type of cost sharing you choose. A multitude of coverage options and combinations are available. A lower monthly premium can be achieved by choosing a higher annual deductible (the amount you would pay before your plan pays benefits). Don’t be afraid to choose a higher annual deductible, especially if you are healthy. A higher deductible will save you money.

Which coinsurance you choose can also affect your monthly premium. The 70/30% coinsurance option has become a popular choice. With this newer option, in addition to well known 80/20% coinsurance, consumers are now able to further customize a plan that meets their insurance needs as well as their pocket book.

Plus, just think how much better mom will sleep at night knowing you’re covered.

Individual Health Insurance Basics, Part 1

Understanding any kind of insurance can be confusing. Understanding your car and homeowners insurance is very important - understanding your health insurance is critical. I would like to share some basic information that may help.

What is individual health insurance?
It's coverage that you buy for yourself and your family. It can cover one person, a couple, or a family. Most people get health coverage through work, an association they belong to, or the government. If you do not have health insurance through any of these options, you need to buy private health insurance.

Do I need health insurance?
Not having insurance is worse than paying premiums. You might be able to pay for a doctor visit, prescription or other smaller medical costs on your own. However, you probably could not afford the high medical bills following a bad accident or severe illness. If you don't have insurance to protect you, you are responsible for paying all of these bills yourself. People without insurance may face a serious threat to their health by waiting to go to the doctor. There will be higher costs if your condition gets worse.

Where can I buy individual health insurance coverage?
Individual health insurance can be purchased through independent health insurance agents. Agents represent many companies that have a variety of plans. You can also buy health insurance on the Internet or directly from an insurance company.

Visit Celtic's Individual Health Insurance Learning Resources page to learn more - and stay tuned to this blog for additional information to help you understand individual health insurance!

Individual Health Insurance - Where Do I Start?

"Where do I start?" You might be asking yourself this question when it comes to understanding individual health insurance. Maybe you've always gotten health coverage from your employer or as a dependent on a family member's plan and now you're looking for insurance on your own. Or maybe you have an individual health plan now and you want to make sure you understand how it all works.

I'll bet you're asking yourself a lot more than "where do I start?" We all have a lot to think about while making health care decisions. That's where this blog comes in.

My fellow Celtic bloggers and I want to make it easy for you to make smart choices, so we'll give you lots of tips and tools to help you understand your options. And, of course, we'll address many of the health care topics you're interested in.

We hope you'll visit us often to learn about individual health insurance. Keep informed and explore the answers to your questions - whether they're about coverage options, your health insurance budget, or even staying healthy.

So if you want to learn more, this is a great place to start!

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