Q: I was recently a casualty of corporate downsizing
and will be losing my job. Will I lose my health insurance coverage?
What are my options?
A:
Under the Consolidated
Omnibus Budget Reconciliation Act (COBRA) you are entitled
to keep your health coverage for yourself, spouse and any dependents
for 18 and in some instances up to 36 months. However, you will
be responsible for paying the full premium amount, not the discounted
amount your employer was offering you. Additionally, your company
is only required to offer you COBRA benefits if they have at least 20 employees and offer them insurance
as well.
Seeing
as paying the full premium price plus administrative fees can
add up to a pretty hefty expense, many insurance companies offer
short-term insurance policies to help people get by in times
like these. These plans can be a nice alternative to COBRA.
Q:
What are some of the other benefits to this health insurance
program?
This
program also includes mammogram, transplants, ground or air
ambulance service- many companies unfortunately don't. Some
of the other benefits are:
· Vanishing deductible - 25% decrease
in the chosen deductible each calendar year no claim is filed.
· Ambulance service local and air ambulance service too.
· Organ transplants.
· No probationary restrictions.
· Coverage is effective as soon as the policy is written.
· No waiting period. The coverage is effective as soon
as the policy is written.Accident rider availability with $500
or $1000 coverage per accident with NO deductible.
Q:
I have been hearing talk lately of health
savings accounts. What is that?
Health
Savings Accounts, or HSA as they are often referred to, are tax sheltered savings accounts
similar to an IRA, but earmarked for medical expenses. Deposits
are 100 % tax deductible for the self-employed (and now almost
anyone with an HSA)
and can easily be withdrawn by check or debit card to pay routine
medical bills with tax-free dollars. Larger medical bills are
covered by a low-cost, high deductible health insurance policy
(required). The HSA was meant to replace the traditional high cost health insurance
policy.
Q:
My son just graduated high school and will be heading off to
college. Will this have any effect on our family's current insurance
policy?
A:
Your current insurance plan should keep your children covered
into their early 20s. However, you should consult your policy
to see what age it expires so you will know if you should make
adjustments for longer coverage. Another issue is whether or
not your plan is an HMO. If it is and the college your son is
attending is far away, he may run into a problem finding an
approved provider in his area. You may want to look into health
insurance coverage that is provided by the university as often
times it is less expensive than continuing coverage.
Q:. What is a rider?
A: A
rider is a coverage and/or change added to a policy. The
information about the additional coverage(s) is usually typed
up on a separate piece of paper, which is attached to the copy
of your basic policy.
Q: How can having a pre-existing condition
clause affect a health insurance plan?
A:
A pre-existing condition is a medical condition that required
treatment or treatment was recommended before the effective
date of the insurance plan. A lot of plans will have a pre-existing
condition clause, which will exclude coverage for pre-existing
conditions for up to a year. What is considered a pre-existing
condition and what the clause exclude can vary from plan to
plan and company to company, so it is recommended that you consult
the agent/ company you are dealing with to verify what conditions
effect the plan.
Q: What is coinsurance?
A:
Coinsurance is the portion of the medical bill that is shared
by both the insured and the insurer. For example, if you had
an 85% to $5000 coinsurance, you would be responsible for 15%
of the medical expense while the insurer would be responsible
for the other 85%.
Q:. Can I purchase health plan for
myself? What about a plan for my family?
A:
Yes you can purchase plans for yourself or your family. The
most common source for health insurance is through your employer,
if they offer a plan. Most times these will be the most cost-effective
plans and provide wider array of benefits. However, if your
employer does not offer an insurance plan, another source could
be your local chamber of commerce or professional organization.
Still, if you cannot find the insurance you are looking for,
you can look to a company like Insurance of America that will
work with you and your budget to find you the right individual
policy to meet your needs.
Q: If I were to get pregnant while
not being insured, what insurance options would I have?
A:
The fact is you would have very few options. If you fall under
its low-income status, you might be eligible for Medicaid. You
could also look into becoming part of a group health plan by
getting a job with an employer that offers a group program or
by looking into your local chamber of commerce or other professional
organizations that offer maternity coverage.
There are a handful of states that do offer insurance to pregnant
women under the Children's Health Insurance Program. Additionally,
if you do live in a state that offers this coverage, your baby,
once he or she is born, may also be eligible for coverage.
Q:
I do no need a long-term care insurance plan if I am on Medicare,
right?
A:
Actually, Medicare will not completely cover the expenses of
long term care. Most people incorporate a combination of a Medicare,
Medigap and a long-term care insurance plan to assure themselves
total coverage. Insurance of America offers a solid long-term
care insurance package that can provide an excellent supplement
for your long-term care needs.
