You might purchase a health insurance policy that can be coupled with a health savings account simply to obtain lower monthly premiums. In exchange for covering more of the incidental expenses out of pocket with a HSA qualified plan, you can keep your individual or family health insurance more affordable.
Perhaps of more importance are the tax write-offs that accompany the contributions to your health savings account. Up to certain individual and family HSA yearly limits, you can write off all contributions. And of course, your deposits grow tax deferred based on the current internal rate of return or other chosen investment strategy in your account.
Health Savings Account Withdrawals
All withdrawals from a Health Savings Account are tax free so long as they are used for what the I.R.S. refers to as qualified medical expenses. In order to take full advantage of the tax savings afforded by your HSA, you need to know what constitutes a qualified medical expense.
The I.R.S. considers several products, procedures, programs and equipment to be qualified. Listed below is a sampling of both expenses large and small. For a full list, please visits the I.R.S. website and search form 502.
Meeting your deductible, coinsurance, and copay amounts
Prescriptions (generic and brand), insulin
Dental expenditures, exams, braces, dentures, etc.
Contact lenses, eye glasses and exams
Laser eye surgery and vision correction
Weight loss programs and smoking cessation
Crutches, wheel chair, approved motorized devices
Approved durable medical equipment
Hearing aids and hearing exams
Chiropractor and mental health visits
This is a long list, but not all inclusive. There are several other items that qualify as medically necessary expenditures that you can pay for with the funds in your health savings account.
Pay for All Approved and Qualified Expenses
It makes little sense to save money in your HSA if you are not later using the funds to pay for approved expenses. If you later closed your HSA, then all the funds that had accumulated in your account would be distributed as taxable income once withdrawn. If you have not been using your account for even the smallest of expenses, then you are not taking full advantage of the tax savings.
Of course, you may only wish to save enough to meet your deductible or coinsurance amounts should you ever need to pay them. However, it is fiscally responsible to save more than these combined amounts and withdraw your accumulated funds for any and all approved medical expenses.
Setup Your HSA – Contribute Retroactively
You may like the lower health insurance premiums associated with a HSA, but are not sure about creating the actual savings account. It is a good idea to go ahead and setup the account with a local bank or one affiliated with your chosen health insurance company.
Even if you decide to put in a minimal amount, only for the purpose of creating the account, you can later fund your HSA retroactively. For example, if you setup a HSA with $50, but then later had $2500 in medical expenses, the account would already be created and could later be funded before paying the anticipated doctor and/or hospital fees.
If you have not setup and funded your HSA, then you would not be able to write off the anticipated expenses that had already occurred. Thus, it is wise to at least create and then fund your account with a small amount. You can later add to it if needed.
Do I Have to Setup a Health Savings Account?
There are no rules stating that you must setup a HSA if your health insurance coverage allows for it. Your monthly premiums would only pay for the health insurance itself. Any funds deposited into a health savings account are in addition to the monthly premiums with the insurance company.
Request Quotes and Information
Hyers and Assoc. is an independent insurance agency serving several states and providing health insurance quotes and enrollment services direct. We represent many national carriers including Aetna, Anthem, Assurant, Medcial Mutual, Golden Rule, Humana, United Healthcare and others.
Contact us for more information about health insurance plans offering a health savings account.
Medicare supplement Plan G was updated way back in 2010 and should now be considered by most beneficiaries as a smart purchase when supplementing original Medicare Parts A and B.
After Plan F, Plan G is one of the most comprehensive plans available. It is an affordable choice if you are willing to cover the small, one-time Part B deductible in exchange for lower monthly premiums.
Medicare Supplement Plan G Benefits & Coverage
Plan G covers all of the gaps in Original Medicare except for the Part B deductible. The Medicare Part B deductible amount for 2018 is $183 – the same as 2018. This amount can increase slightly, stay the same, or actually decrease each year. It never increases by significant amount, however.
Prior to June 1, 2010, Plan G only covered 80% of Part B Excess charges, but plans purchased after June 1 cover this benefit at a 100% level. If you live in or often travel to a state that allows doctors and/or hospitals to charge Part B excess, then it’s wise to consider a supplement that covers Part B Excess charges.
Plan F and Plan G are the only two policies that coverage Part B Excess Charges in their entirety. It is important to note that some states do not allow for Part B Excess Charges. Ohio is one such state. In this case, Plan N can be a good choice as well.
Plan G Monthly Premiums & Out of Pocket Costs
Plan G is usually quite affordable and typically costs around $20-$25 less than Plan F on a monthly basis. If you wish to keep your Medigap insurance premiums affordable, but also want to purchase comprehensive coverage, then Plan G can be a very good choice.
Almost all supplemental insurance plans will experience rate increases year over year and Medicare Supplement Plan G is no exception. Predicting future rate increases is difficult, but as long as you stay in reasonably good health, you should be able to purchase a less expensive policy in the future.
Lower Premium Increases With Plan G Insurance
With some carriers, their Plan G rate increases have been smaller when compared to their other supplemental offerings. The reason is Plan G is not a guaranteed issue plan outside of open enrollment at age 65. Less availability and tighter underwriting standards can sometimes translate to lower costs and smaller premium increases.
In most states there in not a yearly open enrollment period which means you may need to undergo medical underwriting in order to qualify for new coverage. Underwriting is required to prove that you are in moderate to good health. Assuming you qualify medically, you can change to a new Plan G or any other Medicare supplement in order to keep your monthly premiums down.
Shopping Online For Less Expensive Medicare Plans
There are several insurance companies offering Medicare supplement Plan G and new companies are entering the marketplace quite often. It is important to work with an agency that is keeping up with these changes. As more affordable plans become available from other carriers, it is wise to reach out to an agency like ours to compare your rates.
Whether you purchase Plan G, Plan F or any other Medicare supplement insurance policy, it is important to keep in contact with an agency like ours as rates increase and new carriers offer coverage in your area.
Request Medigap Rates And Information
At Hyers and Associates, Inc. we are an independent agency specializing in Medicare supplemental insurance policies. We represent several providers and are always looking for new, low cost carriers for our current and prospective clients.
Plan F Medicare supplement insurance policies are the most comprehensive supplemental plans available for purchase today. They cover all gaps in Medicare and have no out-of-pocket costs to the insured for Medicare approved expenses.
With Plan F, there are no deductibles, coinsurance or copays to meet. So long as your expenses are Medicare approved, Plan F will cover the remainder. There are no lifetime limits or maximums – and coverage cannot be cancelled so long as you pay your premiums.
(It’s important to note that no Medicare supplements sold today cover prescription drug costs. In order to cover these expenses, a private Part D prescription drug plan must be purchased.)
Plan F Medicare Supplement Insurance Benefits
When viewing a Medicare supplement benefit chart, you will see that Plan F covers all of the gaps in Medicare Parts A & B. This is why agents sometimes refer to Plan F as the “Cadillac Plan.” It’s the most comprehensive available, but it will no longer be offered to those who are new to Medicare beginning in 2020. More on that later.
When comparing Plan F Medicare supplement insurance quotes, you are shopping on price, rate increase history and the reputation of the insurance carrier. It can be good idea to shop with an independent agency (like ours, of course) so you can learn more about yearly premium increases from the various companies.
Understanding Medicare Part A & Part B Deductibles
Plan F fully covers both Part A and B deductible amounts as well as Part B coinsurance at a 100% level. Most Medicare supplements cover the Part A deductible, but only two (Plan C & F) cover the smaller Part B deductible.
While the Part B deductible might be of little concern to some, some consumers simply want a hassle-free plan with no out-of-pocket exposure to worry about – and that policy is Plan F. If you are not worried about the small Part B deductible, then Plan G can be a good choice. The lower premiums with Plan G usually make up for the deductible and Plan G premiums tend to increase more slowly.
Plan F No Longer Available For Sale In 2020
As mandated by CMS (Center for Medicare and Medicaid Services), Plan F will no longer be offered as of January 1, 2020. Those who were eligible for Medicare before 2020 will be able to keep their F plans and even shop for new ones, but those who are eligible after 2020 will not be able to purchase a Plan F.
The Medicare Access and CHIP Reauthorization Act of 2016 was passed to reduce Medicare costs and increase cost sharing. The law states that beginning in 2020 no plans sold to new members can cover the Part B deductible. That eliminates Plan F and Plan C as well as High Deductible Plan F.
This is not the first time Medicare has withdrawn a supplement from the market. Plan J (the most comprehensive at the time) and a handful of others were decommissioned in 2010. With no new enrollments allowed, some carriers did experience above average rate increases on their existing pool of policyholders. As we get closer to 2020, this change is something to be aware of and it might cause rates to increase more quickly with some F supplement plans.
Coverage For Medicare Part B Excess Charges
Not all states allow doctors to charge Part B excess fees. If your home state – or one that you visit often does – then it can be wise to purchase a plan that covers this benefit. Plans F and G are the only two Medicare supplements sold today covering Part B Excess charges.
If you did face a Part B excess charge (up to 15%) on a significant medical claim and you did not have Plans F or G, you could encounter a large medical bill. While these charges are very rare, it is something to be mindful of in the long run. If your resident state does not allow for Part B Excess Charges (like Ohio for instance) you might consider other plans like C, D and N.
High Deductible Plan F Medicare Supplement Insurance
Plan F is unique in that it is the only Medicare supplement sold today that offers a variation with a deductible. High Deductible Plan F is popular as the premiums are usually very low when compared to most other supplements sold today.
With HD Plan F, your benefits will not begin until a predetermined deductible has been reached. Currently, the deductible for HD Plan F is 2,180. This does not mean that Medicare does not still pay its part first – it does. It simply means that your supplemental benefits don’t begin until you have first met the deductible.
This is a yearly deductible and Medicare officials usually increase this amount each year based on inflation. Any mandated increases will affect all High Deductible Plan F policies – both old and new.
Medicare Select Supplemental Insurance Plans
No matter the chosen insurance carrier, almost all supplemental insurance plans have no network restrictions. As long as your doctors and/or hospitals accept Medicare patients, then they will also accept any supplement you purchase from any company. There are a couple of exceptions, however.
There are two supplemental insurance policies (Plan C & F) sold today that offer “Select Plans” in some areas of the country. Select Plans will only cover non-emergency benefits if you stay in their designated network. The network may not include all of the doctors and hospitals you might want to use. Thus, it’s important to understand any limitations of a network-driven Select Plan before purchase.
Most Select Plans will pay for emergency care outside of the network with no restrictions, however. In our experience, Select Plans C & F are rarely purchased, but they can be beneficial for those in need of lower premiums.
Request Quotes & Information
There are several competing insurance companies offering Medicare supplement insurance in every state. This is a well-regulated insurance product and almost all companies pay claims in an orderly and efficient manner.
Our independent agency can help take the guesswork out of shopping for Plan F and any other supplement plan. We will show you the direct rates with dozens of carriers side by side and walk you through the value each has to offer.
Medicare supplement premiums are usually locked-in during the first year of the policy. After 12 months and on your policy anniversary, you’ll usually find the insurance company increases your monthly rates by 5-10%.
Many carriers are enacting price increases of ten percent or more year over year. Some are raising prices more than once in the same year. Rest assured however, there are several ways to reduce your monthly premiums.
When Can I Change My Medicare Supplement Insurance Plan?
The short answer is: you can switch Medicare supplement plans year round. In most states, there is no open enrollment period once you are already a Medicare beneficiary. When your premiums increase, you can contact an independent agency (like ours) and we will help you find new companies offering the same coverage at a lower rate.
There is one caveat, however. You must be in reasonably good health to medically qualify for a new supplemental insurance plan. Most companies have several questions on their application and if any are answered yes, you will be ineligible for new coverage. A phone interview might be required as well, but you do not need to get a physical.
In some cases, a certain amount of time must have elapsed since a particular health event. You might need to be 3-5 years removed from a heart incident, for example.
In our experience, many consumers can be medically underwritten for a new plan. While underwriting questions and time limits apply to some, they are not consistent across the board. Some insurance companies underwriting standards are more lenient than others.
Several insurance companies have increased premiums more substantially over the last few years in several areas of the country. As long as you are in decent health, you will be able to purchase the same coverage (Plan F for instance) with another company for less.
However, for those who cannot medically qualify for new coverage, there might be other options in certain states. Every now and again, an insurance company will offer their Medicare Supplements with little to no medical underwriting.
They might be trying to drum up business or increase their insured population. Policies might be offered on a Guaranteed Issue basis or with small strings attached. For instance, it might be required that you have an existing plan with a competitor to switch to a new lower cost plan. Others will accept all comers with few health questions asked on certain plans.
Pro tip: It’s wise to have a relationship with an independent broker who is familiar with any Medicare Supplement specials offered in your State.
Yearly Anniversary And Open Enrollment States
Two states offering a yearly open enrollment that we serve are Missouri and California. They both have an annual open enrollment period when you can switch to like, or lesser, coverage (Plan F to Plan F or Plan F to Plan G for instance) without medical underwriting. The open enrollment window is unique to the individual and occurs on either the anniversary date when the coverage was purchased or the insured’s birthday.
If you live in either of these states and are unsure of your options, then contact our agency. We can discuss the optimal way to purchase a new Medicare supplement without any medical underwriting needed.
Request More Medigap Information
We are an independent agency licensed with all of the major carriers. We work in several states and offer several competitively priced Medicare supplement insurance plans. There is no additional cost to use our services as Medigap prices are controlled by law. You are always buying direct when using us.
We will provide you with current quotes on the plan(s) of your choice. We’ll advise you on your best options when your monthly premiums have increased or when you are in your open enrollment window.
Contact us to learn more about lowering your Medicare supplement rates today.
Medicare supplement insurance Plans M and N will be available for purchase with effective dates of June 1, 2010 and beyond. These two new plans offer attractive coverage for those willing to exchange lower monthly premiums for higher out of pocket expenses.
Both M and N are cost sharing plans. The insured will be responsible for additional out of pocket expenses when compared to Plans C, D, F and G. In this way, they will work somewhat like Medicare Advantage coverage, but unlike Advantage plans there are no network restrictions for the insured.
This means that you are free to visit any doctor or hospital that accepts Medicare patients. The freedom from having to operate within a small network of health care providers will be a distinct advantage for Plans M and N.
Plan N Offered on a Guaranteed Issue Basis
The good news is that at least one insurance company will offer Plan N on a guaranteed issue basis in most states. This will be very beneficial for those who live in a state that does not offer a yearly open enrollment window and have tried unsuccessfully to be medically underwritten for a new Medicare supplement. Plan M may require underwriting with most companies.
Plan N Medicare Supplement Highlights:
Fully Covers All Medicare Basic Benefits
$20 Copayment for Office Visits
$50 Copayment for ER visits
Fully Covers Part A Deductible
Does Not Cover Part B Deductible
Does Not Cover Part B Excess Charges
Issued on a Guaranteed Basis w/ Some Providers
Plan M Medicare Supplement Highlights:
Fully Covers All Medicare Basic Benefits
No Copayments for Office or ER Visits
Cover 50% of Part A Deductible
Does Not Cover Part B Deductible
Does Not Cover Part B Excess Charges
Part B Excess Coverage
It is important to note that many states (Ohio and Pennsylvania for example) do not allow doctors to charge for Part B excess. If you live in one of these states and plan on maintaining a residence there, then you need not worry about this benefit. If you live in a state that does allow for these charges, then be aware that you could have higher out of pocket expenses should you choose a supplement that does not cover Part B excess charges.
Insurance Companies Offering Plan M and N Medicare Supplements
There are several supplemental providers offering either Plan M, N, or both through independent agents. Depending on your state and zip code of residence there will be a handful of competitive providers in your area. As of now, Mutual of Omaha, Assured Life, Family Life, Gerber Life, Loyal American, Anthem, United Healthcare AARP, and a few others are offering affordable coverage in several states.
In summary, both Medicare supplement plans M and N will be cost effective ways to cover most of what Original Medicare Parts A and B do not. When coupled with a prescription Part D drug plan, you will have all four components needed for complete coverage. And should you decide that you would like a Medigap plan with less or no cost sharing, then Plans C, D, F, and G will still be available after June 1, 2010.
Request Medicare Supplement Information
Hyers and Associates, Inc. is an independent agency offering Medicare supplements direct to consumer from several highly rated insurance companies. Using our services, you can compare the plans available in your area in order to find the most affordable coverage. We work in several states including AZ, CA, FL, GA, IL, IN, MO, OH, NC, NJ, PA, and TN & TX.
Contact us to compare the lowest rates on Medicare supplements in your area.
One of the first components of the health care bill to take effect is the requirement that insurance companies provide coverage for children under age 19 who have preexisting conditions.
The change is slated to take place in September of 2010 and is designed to prevent children from being excluded from their parent’s policy or a similar stand alone policy that can be purchased in the open market.
No Exclusions for Children
After September, health insurance companies will no longer be able to exclude children with preexisting conditions from coverage. Additionally, they cannot place a rider or exclusion on any conditions which would trigger a waiting period for coverage to begin. The simply means that health insurance carriers will have to insure all children regardless of their past health history.
Health Insurance Premiums for Children
It is still somewhat unclear how these legislative changes will affect premiums. The intent of the new law is to put a cap on premiums that can be charged by the insurance carriers and to close any loopholes which could result in a child being denied coverage. Working through the NAIC, insurance providers have said they will cooperate with the federal government and operate within the confines and intent of the law.
Overall, this is good news for children who have had difficulty enrolling in a comprehensive health insurance plan. How these changes may play out as part of the health care overhaul in total is yet to be told. It is the opinion of this insurance representative should health care reform be repealed or overhauled, guaranteed coverage for children is one area politicians are unlikely to change.
Adults with Preexisting Conditions
Adults with similar problems finding insurance will have to wait longer. As it stands now, adults with preexisting conditions will have to wait until 2013 before insurance companies will be required to cover said conditions or provide coverage at all.
Legislative changes could happen between now and then, but states are moving quickly to create high risk health pools to accommodate those who are currently uninsurable. (It should be noted that high risk pools exist in many states already.)
State run programs for high risk individuals should be up and running within the next six months across the U.S. They will be subsidized by the federal government and will have caps on the monthly premiums which can be charged.
Request Health Insurance Information
Hyers and Associates Inc. is a full service independent insurance agency providing health insurance quotes for individuals, families, and groups in several states.
We work in Arizona, California, Florida, Georgia, Illinois, Indiana, Missouri, Ohio, Pennsylvania, and Tennessee.
Contact us today and we can help you find suitable medical coverage that fits your needs.
If you are interested in term life insurance with no medical underwriting, physicals or blood-work, then there are policies available for you. Many companies now offer non-med term policies; also known as simplified issue term life insurance.
These policies are appropriate for those with less than perfect health and for those who want to avoid medical underwriting. Applying for coverage is simple and policy turnaround is quick and easy.
Non-Med Term Life Insurance Providers
There are a handful of companies offering such policies. Some are permanent policies designed to cover burial expenses while others are for specific terms – say 30 years. Usually there are limits on the face amount of insurance you can purchase. The maximum amount available from most providers is $400,000 in death benefit per policy.
More stringent underwriting would be necessary if you wanted a larger face amount. You can purchase multiple policies from separate carriers in order to increase your overall insurance coverage, however.
Most companies will ask at least a few questions on the application. There can be certain factors that prevent you from buying a policy. This would apply to those with serious health issues. Most who apply are accepted so long as they’re in reasonably good health.
Watch Our Video & Learn How To Quote Plans Today
Whole Life Or Term Life Insurance Coverage?
Term life policies can be purchased for lengths of 10, 20, 30 or 40 years with some lengths in between. You are always free to cancel your policy at anytime if you so choose. You are essentially renting the insurance for as long as you think it might be needed. It’s not permanent. Premiums are more affordable and death benefits are typically higher. They are designed to get you from point A to point B in life.
There are several benefit riders you can add to your term policy, including: critical illness, waiver of premium, disability income, and accidental death or dismemberment. Some carriers allow you to add additional insureds like a spouse or children.
Conversely, most whole life policies generally have smaller death benefits. We see these used to cover funeral expenses. Most guaranteed issue whole life insurance policies do not provide a full death benefit right away. That would involve too much risk for the insurance company.
More likely the full death benefit would be available after the first year. If the insured passes away before then, the premiums plus 10% would be returned to the estate. This is referred to as a graded death benefit.
Simplified Issue Term Life Insurance Quotes
To be clear, you get your your best insurance rates when you are medically underwritten. However you may not wish to subject yourself to the process for any number of reasons. Non-medical term life insurance will be more expensive, but it is certainly not cost prohibitive.
Term policies can be used as a stopgap measure if you find yourself in a transitional period of time. Perhaps you are working toward better health and need something in the interim. In the future, you can purchase new term insurance through traditional underwriting methods and cancel the old policy.
In summary, simplified term life insurance is a quick and painless way to purchase a life policy that will protect your loved ones. It will give you peace of mind knowing you have financially provided for those closest to you.
In any form, life insurance is the most cost effective way to insure a stable future for those who depend on you. Whether it’s term, universal or guaranteed whole life insurance to cover funeral expenses, a policy with no underwriting can make a lot of sense.
Request Life Insurance Information & Quotes
If you would like to view simplified issue or traditional term life insurance quotes, please contact us today. At Hyers and Associates, Inc we work all of the major life insurance providers. We’ll recommend the most suitable plan for you and your family.
You may wish to exchange your old annuity or life insurance policy for a new one for any number of reasons.
Section 1035 of the IRS tax code allows you to do so while deferring any taxable gains in your old policy.
The accumulated gains in your old policy can be transferred to a new insurance policy on a tax-free basis. In most cases, you can continue deferromg income taxes in your new policy for as long as you wish.
What is a 1035 Tax Free Exchange?
A 1035 tax-free exchange is simply an IRS tax code. It allows for the rollover of a non-qualified annuity (or transfer of a life insurance policy) to a new annuity or life policy of equal or greater value.
Capital gains and/or income taxes will not be realized from this type of transfer when completed properly.
There are only three types of 1035 exchanges:
Annuity to Annuity Transfer
Life Insurance to Life Insurance Exchange
Life Insurance Cash Value to Annuity Policy
The I.R.S. does not allow for a 1035 exchange from a tax-deferred annuity to a life insurance policy. If you want to buy a life insurance policy with the proceeds from an existing annuity, you will first need to annuitize (or surrender) your annuity and pay taxes on any deferred gains.
That is not to say that trading in an annuity for a life policy is a bad idea (it can make a lot of financial sense) but it would not fall under the 1035 tax-free exchange rules.
Non-Qualified Annuity 1035 Tax Free Exchanges
Transferring funds from one annuity investment to another is the most common example of a 1035 transfer. Oftentimes this is done to establish a new, better-performing policy.
Perhaps your old annuity has a lower interest rate, you are interested in a first-year premium bonus, or you would rather exchange a variable annuity for a more conservative fixed or indexed account. There are many reasons you might want to exchange a non-qualified annuity. (View current fixed annuity rates here)
This type of exchange only defers taxation if you move from one non-qualified annuity to another. Non-qualified accounts are those in which you have already paid taxes on the invested principal, but not the deferred gains.
Conversely, a qualified annuity is one where the invested balance has not yet been taxed at all – like an IRA or 403b. You can roll over IRA and 403b annuities on a tax-free basis, but this is not technically a 1035 tax free exchange.
You can exchange your existing non-qualified annuity for a new one with the assistance of a licensed insurance agent and by completing the proper paperwork. It is important to note this exchange must be done properly – otherwise, the transaction can result in a taxable event. We help our clients avoid this issue.
Both insurance companies involved will require properly completed transfer and replacement forms as well as a Letter of Instruction. Cashing in your old annuity and taking constructive receipt of the account balance will not meet the IRS standards.
It’s smart to work with a knowledgeable agent to ensure you comply with all 1035 rules & regulations. Failing to do so may create taxable gains that can not be undone.
Tax Free Exchange Of Life Insurance Cash Value
This involves the transfer of the accumulated cash value in your old life insurance policy to a new one. You are allowed to transfer all (or some of) the cash value in your variable, universal, or whole life insurance policy and deposit the funds on a tax-free basis into a new life insurance policy.
You can transfer your cash value into many policy types, but term life insurance is not one of them. Term life insurance has no cash value for the insured. Additionally, you cannot avoid income taxes by purchasing a term policy with the cash value from an existing whole, variable, universal, or indexed life contract.
You might consider a 1035 life insurance exchange if you want to establish a new single-premium life insurance policy. Perhaps your life insurance needs have changed and you no longer wish to pay future premiums. In other cases, you might want to establish a new policy better suited to your current financial needs.
Transferring Life Insurance Cash Value To An Annuity
You can also withdraw the cash value from your life insurance policy and transfer it tax-free to an annuity account. This is perhaps the least common 1035 exchange strategy, but still valuable in some cases.
You may not, however, transfer any gains from an annuity account to a life insurance policy without first paying taxes on the deferred gains in the non-qualified annuity.
It’s important to note that life insurance policies offer several tax advantages annuities do not. At passing, all proceeds from a life policy can be withdrawn tax-free by your beneficiaries – including the gains. And life insurance can also avoid federal estate taxes and state inheritance taxes when set up properly.
If you are dissatisfied with your life insurance policy, it may be advantageous to transfer the cash value to a single premium policy rather than to an annuity account. If you desire safety and predictability, a single premium whole or indexed life insurance contract can be a good alternative to a variable life policy. Both indexed and whole life policies will earn interest and can increase in value each year based on the performance of the policy.
Request Assistance, Quotes And Illustrations
There are several reasons you might exchange an old life insurance or annuity policy for a new one. You might be seeking a higher rate of return or you may wish to establish a more conservative investment account. In the case of life insurance, you may simply wish to transfer the existing cash value to a paid-up policy so you can avoid ongoing premiums.
At Hyers and Associates, we work with several highly-rated insurance companies providing very competitive life and annuity policies for our clients. Contact us today for more information about a 1035 tax free exchange.
The recent passing and implementation of the Medicare Modernization Act created permanent changes to the Medicare supplement plans insurance companies can offer after June 1, 2010. All plans are still in effect for 2012.
Plans A, B, C, D, F, G, K and L offer nearly the same benefits as before with Plan F now being the most comprehensive. Plans E, H, I, and J have been eliminated. Plans M and N have been introduced as lower priced alternatives requiring some cost sharing for the insured.
New Medicare Supplement Coverage Chart 2012
Benefits
A
B
C
D
F
G
K
L
M
N
Part A Hospital Coinsurance
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Lifetime Reserve Days
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
365 More Hospital Days
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Parts A and B Blood
Y
Y
Y
Y
Y
Y
50%
75%
Y
Y
Part B Coinsurance
Y
Y
Y
Y
Y
Y
50%
75%
Y
Y
Part A Hospice Coinsurance
Y
Y
Y
Y
Y
Y
50%
75%
Y
Y
Skilled Nursing Coinsurance
Y
Y
Y
Y
50%
75%
Y
Y
Part A Deductible
$1,156 in 2012
Y
Y
Y
Y
Y
50%
75%
50%
Y
Part B Deductible
$140 in 2012
Y
Y
Part B Excess
Y
Y
Foreign Travel Emergency
Y
Y
Y
Y
Y
Y
Y
Preventive Care Coinsurance
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Out of Pocket Limit
$4,660
$2,330
Supplements E, H, I and J Phased Out In 2010
As of June 2010, you will no longer be able to purchase Plans J, E, H, and I. They are being phased out and will no longer be for sale by any insurance company as mandated by the Centers for Medicare and Medicaid Services. If you have enrolled in one of these four plans prior to June 1st, then you can keep it if you wish. However, all insurance companies will allow you to convert to any of the new Medicare supplements they offer – like Plan F for instance.
It may be wise to strongly consider this conversion opportunity. When your existing coverage (J for instance) is no longer offered, then there will be no new premiums coming in from future customers. This may very well translate to higher than normal renewal premiums for those who choose to keep a discontinued plan.
If you wish to convert to a new Modernized plan after your conversion opportunity has passed, then you may have to go through medical underwriting and you could be denied coverage because of poor health. This would not be an issue in California and Missouri as those states offer an open enrollment window each year. However, most other states do not provide this opportunity.
New Medicare Supplements M and N Introduced
Medicare Plans M and N will have more out of pocket expenses for the insured if claims arise. In turn, monthly premiums will be lower for these two plans as compared to some others offering more comprehensive coverage – like Plan F for example.
Plans M and N do not cover the Part B deductible or Part B excess amounts. (Not all states allow doctors to charge for Part B excess – Ohio is one such state.) Plan M covers 50% of the Part A deductible while Plan N pays for 100% of this amount. Like Plan M, Plan N pays Part B Coinsurance at 100% except up to a $20 copay for office visits and $50 copay for emergency room visits.
Plans K, L, M and N most closely resemble Medicare Advantage insurance coverage. They require more cost sharing for the insured, but they cannot be packaged with prescription Part D drug coverage. As with all Medicare supplements, Part D drug coverage must be purchased as a stand alone product. Should Congress pass health care reform that limits Medicare Advantage coverage, then Plans K, L, M and N may be suitable low cost alternatives.
Medicare Insurance Benefit Changes
When compared to supplements available prior to June 1st, there are three significant changes to the benefits offered – depending on the coverage you choose. Preventive care not covered by Medicare and at home recovery benefits will no longer be available with the phasing out of Plans E, H, I and J. The rational behind their removal is both benefits were limited in scope, difficult to administer, and not often used by consumers.
In their stead, The CMS introduced an added Part A hospice coinsurance benefit that is a core component of all new plans. This is also a limited benefit as hospice coverage was already part of the basic benefits offered by Medicare, but it does close the small gap in coverage.
Lower Rates on New Medigap Supplements
Not all companies have been approved to offer new Medigap supplemental coverages yet in the states where they do business. However, one of the advantages associated with the Modernization Act should be lower monthly rates for those who choose a conversion plan and for those who are healthy enough to be underwritten for new insurance coverage.
When new plans are introduced they will almost always offer lower rates than their predecessors. There are a couple of factors that account for this, but the primary issue is there are no claims associated with a brand new plan. The longer a plan has been in existence, the more claims the insurance company will experience, and in turn they will increase rates for the pool of insured customers.
Contact Us For Quotes
In summary, the Medicare supplement insurance changes are not dramatic in nature, but may provide an opportunity for you to change plans if you are already insured. If you are new to Medicare coverage, then you should speak to a knowledgeable agent about your options pre and post June 2010.
Hyers and Associates, Inc. is an independent insurance agency offering affordable supplement coverage from several insurance companies. Our agents can answer your questions and assist you with your search for suitable supplemental insurance.
As debate heats up about the rising cost of individual and family health insurance around the country, many carriers are looking at ways to reduce premiums for existing and future insureds.
Anthem Blue Cross Blue Shield recently introduced new coverage options with new benefit designs in order to keep prices affordable. Our agency is proud to offer these new options at no additional cost to you.
Affordable Health Insurance Premiums
The two newest plans are named SmartSense and CoreShare. Both offer larger coinsurance and deductible choices, but also provide comprehensive coverage once the chosen cost sharing numbers have been met. Those who simply need to keep their health insurance premiums affordable can enjoy savings by choosing one of these two plans.
(Editor’s note: As of 2014, Smartsense and CoreShare plans are no longer for sale as they do not offer ACA compliant benefits.)
They are also appropriate if you prefer to self-insure and are comfortable with higher out of pocket expenses. The SmartSense plans offer limited doctors office visits, while the CoreShare plans do not. However, both offer prescription drug coverage benefits to the insured.
Optional Benefits With Anthem Blue Cross
Maternity coverage cannot be added to either of the new plans, but dental and life insurance are options. If you wish to have maternity coverage as part of your overall insurance, then you should inform your agent as it is not automatically included like it would be with group health insurance.
Only the Premier family of plans offers coverage for those who need insurance to cover a future pregnancy. You cannot already be pregnant and purchase a plan that will cover the pregnancy with Anthem. Waiting periods for maternity coverage to begin will differ among states.
It is important to note that there are respective waiting periods that must be satisfied before child delivery takes place with any plan. In you live in Ohio for example, there is a nine month wait to deliver. In Indiana and Missouri, the wait is twelve months. Additionally, you cannot already be pregnant and purchase this insurance.
Preventive Care Options With All Insurance
Anthem is known for offering robust preventive care with all of their health policies. By law, all health plans must cover preventive care as a first dollar benefit. This means that you will have no copay or coinsurance to meet in order to receive preventive care.
Th federal government has and continues to outline what every major medical plan must cover in terms of preventive care. Be sure to ask your agent or review the policy to see what would be covered for you and your family.
View Anthem Health Insurance Quotes
The information above is a quick summary designed to spread the word about new cost effective coverage options. A detailed description of any health insurance benefit package is necessary before purchase. We have created an online direct portal where our clients can view and compare personal individual and family coverage in an instant.
Please feel free to contact us and we can not only walk you through your options online, but also help to make a suitable recommendation with Anthem or any of our other reputable carriers including Aetna, Assurant Health, Medical Mutual, and United Healthcare.
Editor’s Note: As of 2013, Ohio non longer has an inheritance tax. Residents may still be subject to Federal Estate Taxes, however. It is also possible that Ohio residents could pay inheritance taxes on property and assets inherited from a deceased resident of another state.
Furthermore, we still see many of our large-estate clients using life insurance policies to assist with succession and business planning. The information below applied estates settled before 2013.
Countable And Uncountable Assets
If The Taxable Estate Is: The Ohio Inheritance Tax Will Be:
Between $338,333 and $500,000
$13,900 plus 6% of the excess over $338,333
Over $500,000
$23,600 plus 7% of the excess over $500,000
Most assets count toward the $338K minimum – assets such as real estate located in Ohio, vehicles, bank accounts, stocks and bonds, mutual funds, business interests, annuity accounts, and even the contents of your home.
Life Insurance Proceeds Are Not Taxable
The one asset class that is exempt when calculating an estate’s value is life insurance paid to a named beneficiary. However, if the life policy is paid to the estate for any reason, then it would be counted and therefore taxable. It is important to regularly review existing policies for beneficiary designations.
When paid to a named beneficiary, life insurance policies can and will avoid the Ohio state inheritance tax. With this in mind, a select few insurance companies have designed plans that can help reduce your countable estate.
Guaranteed Issue Life Insurance – 4% Growth
A common concern about life insurance is whether someone can qualify medically. If you are in good health, then purchasing a life contract is very easy at most ages.
The good news is that a guaranteed issue policy has recently been approved for those who are in poor health or who would prefer not to be medically underwritten. This life insurance policy requires no underwriting and can be issued up to age 99.
It is a single premium life contract with an increasing death benefit that requires no monthly payments. A $99,000 thousand dollar deposit purchases $100,000 in immediate death benefit. The death benefit is guaranteed to grow by 4% each year. After year one, the $100,000 death benefit would grow to $104,000 and would increase by 4% each year thereafter.
Advantages Over Traditional Investments
This new life insurance contract could be a very good fit for someone who is older or in below average health. It works somewhat like a fixed annuity in that it guarantees interest, except that the death benefit is not subject to income taxes and would not be counted toward the gross estate for Ohio inheritance tax purposes.
A properly designated life policy offers distinct advantages over a certificate of deposit, annuity account, mutual fund, or brokerage account in that it avoids both income and inheritance taxes for your heirs. And again, the death benefit increases by 4% each year which is superior to most other available fixed rate investments.
In summary, those who need to reduce their exposure to what has been deemed the “Ohio death tax” should consider a life insurance policy. You can purchase a single premium policy that is guaranteed to increase each year. Planning ahead will help you, your estate, and your heirs retain more of your accumulated wealth.
Whether you manage a small or large number of employees, it can be a painstaking and time consuming process to obtain group health insurance quotes in Ohio. If you have a new business or are shopping for better rates on your existing plan, correctly filling out applications with several companies can be a tedious process for your employees.
The advent of healthcare reform has made things even more complicated. And the group insurance exchange rollout has been even worse than the individual exchange. In short, you still need an agent.
Universal Group Census For Health Insurance Quotes
The good news is we have a simple census form that can be used to run quotes with all of the major carriers here in Ohio including: Aetna, Anthem BCBS, Humana, Medical Mutual and United Healthcare. The group size must between two and fifty employees.
The simplicity of this new application makes quoting small and medium sized business groups in Ohio much easier than before. Less paperwork is needed and should the employer choose one of the aforementioned insurance companies, then enrollment can be quick and easy.
Underwriting and Group Insurance Enrollment in Ohio
From beginning to end, underwriting and enrolling a new small group or transferring an existing small group with any carrier can take a month or more depending on the number of employees electing coverage. Employers and their human resources staff should count on quite a bit of back and forth before everything is in place. Thus it is always a good idea to get the process started as soon as possible.
While no one person can be denied coverage, group health insurance providers can be meticulous in their approach. They may want to know about your previous coverage and will also want to see tax forms including your wage and tax report. In other words, they want to make sure that you are an actual company with employees.
The Agent’s Role In Group Health Insurance
We negotiate with each carrier in order to lower the group’s risk factor – and in many cases we are successful. Insurance providers are trying to win your business just like you are trying to win the business of your clientele. Negotiations are always part of this process. We have good relationships with all of the carriers mentioned above as well as some other niche players and we will work diligently to negotiate the best premiums for our clients.
Hyers and Associates, Inc. is an independent agency serving the entire state of Ohio and beyond. We work with Aetna, Anthem, Medical Mutual, United Healthcare and several other insurance providers and can provide a universal application to your employees for quoting and enrollment purposes. Should you have any questions about your health insurance and/or benefit options, please contact us today.
In a landscape of national health insurance companies, Medical Mutual is considered to be more of a regional insurance player. While they have branched out to other states in the last few years, they are best known in Ohio as an individual, family and group health insurance provider. In business since 1934, they offer products at no additional cost through independent brokers as well as through direct to consumer channels.
Medical Mutual offers competitively priced health insurance policies in many areas and they boast the largest network of doctors and hospitals in Ohio. We offer Medical Mutual health insurance quotes direct in the individual, family and group marketplaces.
COSE and Ohio Farm Bureau Insurance Plans And Quotes
Medical Mutual is partnered with COSE (Council of Small Enterprises) to offer plans tailored to their small group members. COSE is the small business offshoot of the Greater Cleveland Growth Association and has been working with Medical Mutual for over 30 years to provide benefits for its members. Affiliated businesses should ask their broker about COSE specific plans and prices.
Medical Mutual is also partnered with the Ohio Farm Bureau to offer expanded insurance coverage to its individual and family members. Affordable premiums, improved health, and overall wellness are just some of the goals for the over 200,000 plus members. Farm Bureau affiliated individuals and families should be sure to mention their membership to any broker when requesting quotes. We have online quoting portals specifically designed for OFB quoting purposes.
Medical Mutual: Popular and Affordable Ohio Health Insurance Carrier
In northern Ohio, Medical Mutual is oftentimes more competitively priced than their competition – companies such as Aetna, Anthem and United Healthcare. Individual and group consumers can enjoy reasonably priced plans as well as an extensive network of health care providers. This is not necessarily true in all parts of Ohio so it may be best to view their network options with a broker before enrolling.
Like all reputable providers, Medical Mutual provides online enrollment as well as traditional paper applications. Employer groups will need to enroll using traditional paperwork provided by their broker, but they can manage their group online once enrollment has been completed.
Group, Family, and Individual Medical Mutual Benefits
In the group market place, benefits such as traditional health insurance, health savings accounts, flexible spending accounts, dental, vision, life, and disability are all offered. In this way, they can be the sole provider of benefits to both small and large groups alike. There are several plan designs and deductibles to choose from in order to tailor the coverage to the employer’s needs.
Individual and families will also have several benefits options to choose from including; traditional health insurance, health savings accounts, prescription drug coverage and dental and vision plans. Medicare beneficiaries can choose from Medicare supplement plans, Medicare Advantage coverage and stand alone prescription Part D coverage.
In summary, those who are in need of health insurance quotes in Ohio should consider Medical Mutual. By speaking with our Medical Mutual agency, consumers can learn about plans that might be suitable for their situation.
If you would like to learn more about Medical Mutual and other Ohio health insurance providers, contact us today to request more information.
Gerber Life is now offering Medicare supplement insurance in California. This is the same well known and well rated Gerber Insurance Company that offers life insurance to children.
Gerber Medigap plans are priced quite competitively and in many areas they are the best rates available for those over age 65. Consumers can request personal quotes from independent agents.
Change Your California Medicare Insurance Yearly On Your Birhtday
California is unique in that every year, Medicare beneficiaries can switch their Medicare supplement insurance without any underwriting. This is referred to as the “Birthday Rule” and allows consumers to switch to like or lesser coverage.
For example, those insured under a Plan F with any insurance carrier would be allowed to switch to a new plan F with Gerber or anyone else for that matter. There are no health questions to answer during this personal yearly enrollment window.
Plan J Medicare Supplement Coverage in California
Plan J is no longer for sale by any company in any state. This means that Plan F is the most comprehensive Medicare supplement available for purchase. Gerber Life, Mutual of Omaha, AARP and Stonebridge Life (among many others) all offer Plan F in all of California. We can help you compare quotes with all four and many others.
It is important to note that in June of 2010 Plan J was phased out and newer plans are being phased in. Consumers are no longer be able to purchase Plan J, but will be allowed to keep their existing Plan J or switch to another like or lesser plan during their birthday month.
Using an Independent Medicare Supplement Insurance Agent
It may be wise for consumers to align themselves with an independent agent offering supplemental insurance in CA. There are companies offering new plans all the time and your agent will make you aware of these new offerings.
Typically, when coverage is first introduced is when it will be most affordable to the consumer. The longer the insurance has been available, the higher the premiums will be due to claims experience by the insurance company.
When consumers use an agent, they are buying direct from the insurance carrier. There is never a surcharge for the agent’s assistance. And when plans change (like they will in 2010) or when a new competitively priced supplement has been introduced, then your trusted agent will explain all of your options.
Need Medicare Supplement Assistance in CA?
We are an independent Medicare supplement insurance agency serving all of California. Should you like to view quotes with Gerber Life or anyone else, please contact us to compare the lowest rates in your area.
As of the writing of this article, there is still no decision from Washington as to whether the COBRA health insurance subsidy will be extended for those who lost jobs or were laid off.
There is talk that Congress might extend the subsidy for an additional 15 months, assuming those who qualified have not already exhausted their benefits.
How Much and How Long is the COBRA Subsidy?
Currently, the health insurance subsidy pays 65% of the cost of the insureds former premium. If new legislation is not passed, then the insured will be responsible for the total amount of their share of their former employer’s premium – plus a small administrative fee. Thus, the premium for the insured will triple and may no longer be affordable.
Even if Congress decides to extend the benefit, it is important for those who are relying on COBRA to understand its limitations. In all forms, COBRA health benefits are temporary in nature. If your former employer had 20 or more employees, then the coverage limit is 18 months. Thus, if the temporary subsidy is renewed, the insured will still lose health insurance benefits after a year and a half.
What Happens When COBRA Runs Out?
Many are taking advantage of the government subsidy, but when it either runs out or the insured reaches their 18 month limit, it is wise to search for new coverage. A suitable option for most will be to explore policies in the individual and family health insurance marketplace.
Underwriting will be required and at this point carriers can still decline insurance coverage based on preexisting conditions. For those that are in good health, it might be wise to explore their options before they lose the COBRA subsidy. Healthy individuals might sacrifice their window of opportunity to purchase permanent coverage while taking advantage of this temporary, subsidized period of time.
Other Health Insurance Options
There will be some who cannot find individual coverage when their COBRA plan is exhausted. The uninsurable should contact their State Department of Insurance and research any available options. Most states offer a high risk pool (or something like it) for those who cannot purchase insurance elsewhere. Limited benefit plans are another option, but may not provide robust enough coverage for those who need it most. Eventually, health care reform should make it easier for high risk individuals to purchase coverage.
In summary, COBRA benefits are temporary and allow for a significant period of time for individuals and families to find new health insurance coverage. Consumers may be able to enroll in a group plan with a new employer or purchase a policy in the individual market. Those who cannot find suitable coverage should contact their Department of Insurance to explore all available options.
Plan F Medicare supplement insurance policies are the most comprehensive supplemental plans available for purchase today. They cover all gaps in Medicare and have no out-of-pocket costs to the insured for Medicare approved expenses.
Medicare supplement premiums are usually locked-in during the first year of the policy. After 12 months and on your policy anniversary, you’ll usually find the insurance company increases your monthly rates by 5-10%.
If you are interested in term life insurance with no medical underwriting, physicals or blood-work, then there are policies available for you. Many companies now offer non-med term policies; also known as simplified issue term life insurance.
You may wish to exchange your old annuity or life insurance policy for a new one for any number of reasons.
Transferring funds from one annuity investment to another is the most common example of a 1035 transfer. Oftentimes this is done to establish a new, better-performing policy.