short-term insurance plan With the rising costs of insurance premiums, you may be tempted to believe that you can skate for a while without medical insurance. Perhaps you are between policies or between jobs. Why not take a breather from an insurance payment? Just a month or a year saves you dollars.

After all, the premiums for both short-term insurance and its long-term counterpart run high. But, do the savings of not paying premiums outweigh the risk of not holding insurance? You may find that a short-term insurance plan proves better than no coverage at all. Let’s consider the reasons why.

TOP REASONS FOR SHORT-TERM INSURANCE OVER NOTHING

Unexpected Medical Expenses Defrayed

Likely, the primary question weighing on your mind is “what if something happens?” The risk of injury and illness proves valid. The resulting medical costs threaten to bury families, even with insurance. In 2014, 40 percent of Americans struggled with medical debt.

In fact, medical debt ranks as the number one cause of bankruptcy. This honor visits the insured and the uninsured. However, the debt load decreases for those with insurance, even those with a short-term policy.

While short-term insurance does not cover pre-existing conditions, it helps defray the costs of unexpected illness and injury. Even the caps on such services fail to negate the fact that a percentage of the bill gets paid — at least something gets covered.

While in between insurance policies, you may experience:

— Work Injuries

Frontline reports that on-the-job injuries are common. In fact, workplace injury rates are higher than being at home. Ill or injured workers (and their families) assume 44 percent of their medical costs from such injuries. Workers Compensation and insurance cover only part of the bill. Plus, this figure does not account for lost wages. The average time off work for falls on the job adds up to 38 days.

— Auto Accident Injuries

Auto accidents send over two million Americans to the hospital yearly, as reported by the Centers for Disease Control and Prevention (CDC). Falls account for greater than 800,000 hospitalizations each year, by CDC figures. Emergency rooms cost anywhere from $150 to $3,000 or more per visit. Insurance cuts these costs by 10 to 50 percent of the total. Without the help of insurance, this bill often haunts the injured long after the accident.

— Food Poisoning and the Flu

Over 400,000 people land in the hospital due to food poisoning. The flu results in 31.4 million outpatient visits and 200,000 hospitalizations, according to the CDC. Treatment costs vary depending on the need for or length of a hospital stay. However, the average cost per case rings in at more than $14,000.

— Heart Attacks and Strokes

The out-of-pocket cost of a heart attack can top over $9,000. With a recovery of two weeks to three months, decreased income adds to the expense. Strokes occur every 40 seconds and cost about the same out of pocket. If these issues do not arise from a pre-existing condition, a short-term insurance policy may work to your benefit.

Avoidance of Care

Reality indicates that people without insurance tend to refuse care. The uninsured represent 4.7 percent of hospital stays. This figure falls well below the 30.6 percent of people with private insurance, 22.6 percent paying with Medicaid and 39 percent with Medicare. No savings proves worth your family’s health. Short-term insurance offers some peace of mind should you need to seek care.

Affordable Premiums

While some short-term insurance premiums run high, shopping around helps find a policy within your budget. And, these monthly payments run lower than ACA-approved, long-term policies. An experienced insurance agent offers you an ally in making sense of your options. These professionals help weigh the premium, deductible, coverage and other factors to find the best fit for your situation.

Freedom to Change Your Mind

You also receive peace of mind knowing that short-term insurance requires less hassle to attain. (Although, you also may get denied.) Furthermore, cancelling your policy is simple. You opt out should you decide the payments are too much. Or, your situation may change allowing you to choose another policy, even an ACA-approved one.

SITUATIONS TO CONSIDER SHORT-TERM INSURANCE

While short-term policies offer bare-bones coverage, they are worth a look. Several situations arise for you to consider a gap policy as opposed to no insurance at all. Perhaps you:

— Missed the deadline for ACA long-term insurance

— Lost your employment and insurance coverage

— Are in an insurance waiting period

— Cannot afford ACA long-term coverage

— Are waiting on Medicare eligibility

In any case, a reputable insurance firm weighs the costs and benefits with you. Doing your research and considering your options allows you to make a wise financial and medical decision. Doing it today protects you before illness or injury hit.

Thank you for reading our blog! How can we help you? Contact us today.

Category: Health Insurance

get long term care insurance What images do talks of retirement bring to mind? Ones of freedom? Extended vacations in your favorite spots? Time for that long-put-off hobby? Often, thoughts on retirement center around the pleasurable expenses. Long-term health costs and their related less-than-ideal circumstances fail to factor into the conversation. Long-term care insurance falls off the radar.

Furthermore, current health fails to predict the need for long-term care. Unexpected illness or injury, such as a fall, often causes this need to arise. In fact, 70 percent of individuals age 65 today are expected to require long-term care, according to U.S. government estimates. While Medicare covers your treatment for illness or injury, it fails to pay expenses related to daily care in nursing homes and through home health aids.

Long-Term care expenses quickly deplete retirement savings. A semi-private room runs $85,775 yearly with privacy raising the cost to $97,455. For just 44 hours per week of care, you will pay a home health aide, on average, $49,192 yearly. These figures give a significant push to consider long-term care insurance in your retirement planning. But, when is the right time to consider long-term care insurance? The short answer? Now. Let’s look at what this means.

Factors to Consider With Long-Term Care Insurance

Discussing this topic with family, friends, and insurance or financial planning professionals helps you gather valuable insight. The time to begin these conversations is now — before long-term care needs arise. As you consider long-term care insurance, a few factors impact your decision.

Medicaid Rules

When an individual’s savings deplete due to long-term care expenses, Medicaid may be an option. However, know the rules. You need to understand what assets must go to qualify you for this coverage. Plus, long-term care financing plans impact your eligibility. With Medicaid regulations varying by state and changing over time, doing your research becomes imperative. LongTermCare.gov offers an excellent place to start.

Your Family

Talking with family about your long-term care preferences and their involvement puts the future into proper perspective. Family willing to take care of you in your home or theirs help defray future costs. However, work considerations may make home health aide assistance or adult daycare centers (and accompanying insurance needs) a reality. If you do not live near family, the need for long-term care insurance rises.

Your Home

If your future care vision includes staying at home, the layout and structure of your house come into play. Even a stellar home health aide cannot overcome a poor floor plan. Take into account the condition of your home. Can it be modified, if needed, to accommodate changes in your health? Is the budget for those changes factored into your plans? Does the structural integrity of your home indicate this to be a wise move?

Costs

The majority of ongoing care needs fall into the category of extended nursing home stays or non-skilled living assistance. Unfortunately, Medicare does not cover these expenses leaving 55 percent of Americans relying on this coverage without a plan — or lumped with the 50 percent of Americans paying for this care out of pocket. Get a realistic picture of long-term care costs when considering insurance.

Budget

With the rising costs of long-term care and related insurance premiums, tying these costs to your budget is a distinct and primary consideration. Unfortunately, the insurance which supports your ideal long-term care plan may be unaffordable. This truth holds for many Americans. Talking with a financial planner or an insurance agent lays out realistic options given your financial situation. Long-term care calculators also offer insight.

The Right Time to Consider Long-Term Care Insurance

Now is the time to start the conversation. Now is the time to seriously research and consider long-term care insurance. Do not procrastinate believing you have plenty of time. Starting early makes for smart decision-making and adds up to savings.

Start Early for Smart Decision-Making

The earlier you start researching long-term care insurance, the better. Finding the right policy to meet your needs and budget requires time. Contact an insurance expert, do your research and make an informed decision. Needing to decide as circumstances escalate leads to inadequate and often expensive solutions.

Start Early for Savings

Long-term care policy premiums often prove expensive. Starting to shop for long-term care insurance well before you need it saves you money. Purchasing a policy at a young age lowers your premium. However, you must factor in your retirement income and its ability to handle the payments. A “hybrid” insurance policy which includes death benefits and annuities may help as well. However, financial planners prove wary of this option.

Stop Your Procrastination

Now is the time. Today is the day. Research long-term care insurance. Consider your unique situation. Purchase a policy, if that is best. And, mark this weighty task off your to-do list before it becomes a stressor.

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Category: Long Term Care Insurance

life insurance today As a senior, you may think life insurance is unnecessary. After all, your age and health conditions raise premiums. And, honestly, why now? Life insurance replaces income should you pass away, and you are retired. The mortgage is paid off. And, your kids are holding their own. Is a life insurance policy accessible and necessary at this time in your life?

Before you reason yourself out of purchasing a policy, contemplate the idea a bit further. And you might be surprised to discover the reasons for getting or maintaining a life insurance policy this late in the game. Consider some compelling reasons why you need life insurance today.

1. Pay Funeral Expenses

Funerals fall among the top five life expenses. According to Bankrate, the average funeral runs between $7,000 and $10,000. The cost continues to skyrocket. Without a plan to cover these costs, your family is left with large-scale bills and the worry that goes along with them. And a life insurance payout removes the burden from your family by supplying the money they need.

2. Cover Current Income

Retirement remains an impossibility for some seniors. Life circumstances or the passion for a career keep them in the workforce. If you continue to work, even parttime, life insurance offers a means of protecting your savings and replacing your income upon your death. Any named beneficiaries benefit from these monies. And this means one less worry in their time of grief.

3. Bear Loan Debt

If you are a retiree with significant outstanding loans, a life insurance policy may be in order. These payouts remove the burden of this debt from surviving family members. Carefully calculating the amount of coverage needed to eliminate the debt prevents you from over-insuring. A policy which outlasts the loans is not wise.

4. Cover Personal Debt

Funeral plans only cover costs associated with a funeral. Life insurance policies contain no restrictions on how the money is spent. Therefore, family members may use the funds for other purposes. Medical bills, credit card balances or estate taxes fall among the possibilities. Plus, the liquidity provides immediate resources for the family without the need to sell other assets.

5. Guard Your Business

Life insurance policies protect your business partners and employees in the event of your death. The funds left to beneficiaries may be used to offset the loss of your role in the business, cover interim expenses or buy out your interests. With these funds, the company you poured your life into is guarded through your death.

6. Protect a Disabled Child

The ongoing medical care and support of disabled children add up. If you are in this situation, likely you are aware of the astronomical expenses today and into your child’s future. Life insurance offers a means for you to provide for the medical and living costs associated with your child’s disability after you are gone.

7. Give Family a Boost

Life insurance policies enable you to provide for your family’s financial needs into the future. Paying for a college education for your children, eliminating the mortgage payment for a spouse, providing for a loved one’s travel or comfortable retirement are possibilities. Also, the cash value of the policy also supplements Social Security benefits to offer beneficiaries additional income.

8. Maximize Inheritance

As a tax-free estate planning option, life insurance policies maximize your inheritance. And the same principle applies if leaving your wealth to a charitable organization. Furthermore, irrevocable life insurance trusts (ILIT) are not subject to estate taxation and are protected from creditors. Also, these monies are especially useful for those needing financial protection.

9. Leave a Legacy

For many seniors, children and grandchildren bring meaning to life. And spending time with and finances on these loved ones prove a joy. Life insurance policies offer a way for these seniors to make a tax-free gift for major milestones after their deaths, without impacting their current savings. So given for birthdays, graduations and weddings, these gifts bless loved ones.

10. Provide Peace of Mind

The world proves an unstable place. Purchasing a life insurance plan, even as a senior, offers peace of mind for you and your loved ones. The financial provision does not relieve grief. However, it stops the worry of family members as to their future financial survival. And, you can do nothing about this after your death. But, you can address it today.

Of course, a life insurance policy should not strain your current finances. Providing for loved ones after one’s death comes in many shapes and sizes. Furthermore, talking with a qualified insurance agent reveals your options and helps you identify the plan which fits your unique situation. We can help.

Thank you for reading our blog! How can we help you? Contact us today.

Category: Life Insurance

Medicare coverage Understanding the world of health insurance can definitely become challenging. If you feel overwhelmed by the policies offered to you and the coverage you need, you are not alone. Medicare and supplemental insurance policies are filled with jargon and fine print that make many of our heads spin.

We would like to help clear up the confusion. Keep reading for an overview on what Medicare covers and the gaps which supplemental insurance helps fill.

Medicare coverage is based on three factors. Federal and state laws, national coverage decisions and local or state coverage decisions come into play. While coverage is not black and white, knowing what Medicare generally covers keeps you in the know. And, it helps determine your need for supplemental insurance.

Medical Expenses Medicare Covers

While educating yourself on Medicare coverage, keep in mind that limits apply. For instance, Part A states that it covers skilled nursing home care. On a more in-depth look, this coverage does not include long-term or custodial uses of nursing home facilities. Caution is required when interpreting the wording of any policy.

To start building your understanding, check out the information below. Medicare takes care of you in regard to:

— Hospital care, including acute, critical, rehabilitation and long-term care service

— Hospice care related to palliative care, therapies, social services and counseling

— Home health services, such as intermittent skilled nursing care and therapies

— And, medically necessary skilled nursing home care, for a limited time

To determine if a service, test or item is covered by Medicare, talk with your healthcare provider. Often these professionals have a working knowledge of coverage and provide wise counsel. You may also visit medicare.gov and use the coverage search feature located there. Simply type in the item you question coverage for, and you are directed to an answer.

You may also contact a licensed insurance agent to understand your health insurance options. The business of these professionals is knowing what policies cover and which fit your medical and financial situation best. In any case, do your research to prevent unexpected, costly gaps in coverage. Unfortunately, the weight of understanding falls on you.

Reasons You Need Supplemental Insurance

Gaps in Medicare coverage do exist. Knowing your current medical requirements and planning for future ones gives you a picture of your need for supplemental insurance. These plans pick up the Medicare slack by providing coverage when your primary plan fails to do so. However, be aware that supplemental policies vary and may leave gaps as well.

In our example above, Medicare denies claims for custodial or long-term nursing facility care. The aging population proves the reality that you may need these services at some point. The Motley Fool reports that an average nursing home tab runs $225 per day, which averages out to $82,125 per year. The cost rises with a private room. Insured by Medicare alone, you pay these expenses out of your bank account.

Medigap or Medicare Supplemental Insurance covers some conditions and situations Medicare denies. However, some expenses remain uncovered. In the nursing home example, you are left to foot the bill even with Medigap insurance. Looking into other policies still may be needed to address your future health needs and prevent unexpected financial hits.

You may consider supplemental insurance for coverage of:

— Deductibles, coinsurance and copayment expenses

— Round-the-clock home health care

— Long-term or custodial nursing facility care

— Dental care, including dentures

— Eye exams and prescription glasses

— Hearing aids and related exams

— More extensive prescription coverage

— Routine foot care

— Acupuncture

— Cosmetic surgery

These medical services tend to be denied by Medicare. If you want to avoid paying out of pocket, investing in a supplemental insurance plan may be the answer. But, as with all plans, read thoroughly or seek professional expertise on what policies cover. Each plan differs in its scope of coverage.

Medicare Alone or Partnering With Supplemental Insurance?

Determining the best insurance option for you requires research and consideration. After all, you do not want to pay for services you will never use. Plus, supplemental insurance is expensive, and the cost rises as you continue to age. Is it worth the investment?

Weighing the costs of supplemental plans and potential out-of-pocket expenses helps determine the wisdom of purchasing these additional policies. Your personal health history and family medical history come into play as well. And, buying sooner rather than later also saves you money. Again, talking with a licensed insurance agent educates you as to what options exist and gives you answers as to which investment proves worth the return on your unique situation.

Thank you for reading! How can we help you with your supplemental coverage? Contact us today.

Category: Medicare Supplements

short term health insurance Short vs. long. Medical vs. life. Temporary vs. full. Term vs. whole. Health insurance vs. disability. Home, auto, and travel. The insurance options can become overwhelming. While we cannot clear up all the confusion in one article, let us explain the difference between short-term or term policies and long-term or whole options.

Short-term health insurance offers coverage in the absence of long-term insurance. Situations in which you may need short-term insurance include:

– A job loss or the state of being between jobs
– The waiting period required by an employer or government-based health plan
– The open enrollment deadline passed

In these cases, short-term insurance (sometimes referred to as gap insurance) covers your medical expenses for a period. However, the differences between short and long-term options are worth paying attention to, so you do not face any unpleasant surprises.

Even the options for short-term coverage vary. Check the details of any policy before committing to a purchase. Talking with a licensed insurance agent helps you sort through the offerings and identify which works best in your situation.

Let’s compare.

Short-Term vs. Long-Term Insurance

The differences between long and short-term health insurance prove significant. Understanding the variations helps you choose a policy which fits your situation. Take your pre-existing health issues, potential near-future medical needs, other living expenses and current job status into consideration as you shop.

1. Time Constraints

Unlike long-term insurance, short-term (known as temporary) options are limited to a period. Twelve months is typically the maximum coverage on a short-term policy. Some policies require a three-month minimum.

Also, these plans are not renewable. Once your set coverage ends, you are uninsured. You may apply for a second short-term insurance to give you longer protection. However, even this option limits you to enrolling in only two policies per year.

2. Flexibility

With coverage ranging from 30 days to a year, the length of a short-term policy is up to you. You pay for the protection you want. If you need six months of coverage until your next employer’s medical plan kicks in, you only pay for six months. If it takes twelve months to find a job and secure insurance, you have the option.

Furthermore, short-term insurance tends to require a quick application and be approved quickly. This proves especially helpful in cases where your previous policy ends unexpectedly. A job loss is one such case. You may discover you get coverage as soon as the day after you enroll. Plus, you do not need to wait for an open enrollment period. Short-term policies are available year-round.

3. Expense

Gap insurance policies offer lower premiums than long-term policies. The reason for this cost-effectiveness, however, is the limits in coverage. The purpose of these policies is to protect you and your family in the event of unforeseen accidents and illnesses. Your basic medical needs and emergencies get covered, not much else. Pre-existing conditions, preventative treatments, and prescriptions often fall outside the scope of temporary insurance plans.

Also, medical underwriting may reject you from coverage due to an unhealthy lifestyle or current health conditions. While long-term insurance policies protect you from such rejection through Affordable Care Act (ACA) requirements, short-term options are not expected to adhere to such rules. These limits reduce costs.

4. Pre-Existing Conditions

As mentioned, short-term policies do not cover pre-existing conditions, as their long-term counterparts do. Keep this in mind when considering a gap policy. If you have a pre-existing condition (and, most of us do), weigh the cost of the insurance. A short-term option provides reassurance in the event of the unexpected. However, adding the medical costs of treating your pre-existing condition to the monthly premiums may not be wise.

5. ACA Requirements

The ACA dictates the qualities of health insurance policies. The goal is to provide affordable healthcare to all people. However, the requirements laid out by ACA only apply to long-term policies. Gap insurance falls outside these mandates. For you, this means that the ten essential health benefits ACA plans must cover do not apply to short-term insurance. Typically, sudden illness and injury coverage provided by emergency services are covered, nothing else.

Your Choice

Both short and long-term insurance options come in a variety of packages with a range of costs. Know your situation and your real and potential medical needs clearly as you consider different policies. Investigate the details of each policy to understand what your dollar is buying. Get a clear understanding of the monthly premium, deductible, out-of-pocket expense and the conditions covered. (Remember, medical costs skyrocket in the absence of insurance.) Then, compare the two.

Using wisdom when choosing an insurance plan protects you and your family in the short and long-term. Do your research. Contact a knowledgeable agent. Weigh your options. And, choose wisely. The best insurance is the one which fits your situation and meets your needs.

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Category: Health Insurance

how life insurance The New Year rings in with celebration and hope for a brighter year. Promises and resolutions fly like confetti after the infamous Times Square ball drop. But, as the sweeping of the streets commences the next day, so does the usual routine of our lives. And resolutions tend to get lost.

What if we told you that with one simple action you check several resolutions off your New Year hopefuls — and, that the change lasts all year? Even a lifetime? The answer? Life insurance.

Likely, buying life insurance has been on your mind and to-do list for some time. Unfortunately, it often gets pushed to the bottom of your tasks by seemingly more urgent issues. Let us suggest a few additional motivations to check buying life insurance off your list in the New Year.

Set Realistic Resolutions

One of the best tips for following through on New Year resolutions remains to set realistic goals. Challenging yourself is one thing, but setting objectives in the clouds produces defeat. Resolutions need to be SMART with the “A” standing for achievable. These types of goals look at how you will accomplish the goal and the realistic constraints on doing so.

Plus, choosing significant, meaningful actions also increases the odds of completion. Good resolutions which lack personal meaning fail before the ball drops. For instance, traveling to see the world proves a popular resolution. However, if you enjoy the comforts of home or live on a tight budget, this goal proves unrealistic for you.

Buying life insurance is a realistic resolution. A licensed insurance agent helps you find the policy which meets your needs and your budget. An appointment or two, and you are done.

Accomplishes the Incomplete

The weight of undone tasks grows as time marches forward. Just consider the resolutions of last year that still hang over your head. Tackling these incomplete to-do’s brings an extra sense of relief, a victory in the face of what was once a defeat. Why not take one or two of them on as New Year resolutions and check them off permanently?

Often when we think of life insurance, we muse, “I need to take care of that.” Unfortunately, this conviction arises during times of illness or tragedy. When these times of ill-health or age set in, premiums rise higher. Buying insurance early and when you are in good health increases your options. However, a qualified agent helps when your situation proves otherwise.

Boosts Your Health and Fitness

Many of us spout health and fitness as a New Year goal. We want to look better and feel better. And, these objectives come in a variety of shapes and sizes. Perhaps you choose to lose weight or gain strength; eat healthier or quit smoking. Google data from 2017 ranks getting healthy as the top New Year resolution.

This news comes as no surprise when we look to the promotion of fitness apparel, equipment, and gyms. Life insurance offers its form of promotion as premiums strongly tie into to your health. During underwriting, a medical exam reveals your stats on weight, blood pressure, cholesterol as well as conditions and habits which impact wellness — good motivation to get healthy.

Reduces Your Stress

Much of our stress and worry relates to family and the unknown. We wonder what happens to our family when difficult circumstances occur. We question the financial provision of our bank accounts and investments to cover our family’s expenses. A bit of planning and investing in the future removes some of the stress related to both.

Buying life insurance allows you to take action today on what happens tomorrow. And, your stress response can take a break. Life insurance financially provides for your loved ones in your absence. While being present is the preferred option, this insurance allows you to be more fully present and not worry about the other.

Shows Loved Ones You Care

A common bit of advice hails from those losing loved ones — tell your family and friends what they mean to you before it’s too late. This reminder offers a valuable New Year resolution. Why not determine this to be the year that you show more love to those you care about? We cannot think of a more noble choice.

To take it even further, what about saying “I love you” in the unfortunate event that you are not there to express it directly? Life insurance tells your family that you care about them. In fact, this one simple action lets them know that you love them enough to plan for their future. You are not protecting your estate alone; you are providing for those you love. Ready to set those New Year resolutions?

Thank you for reading our blog! How can we help you? Contact us today.

Category: Life Insurance

short term health insurance Short-term health insurance offers a temporary insurance solution, or so is its intent. A gap in insurance due to a job change, while waiting for Medicare or other coverage to begin, or being outside the open enrollment period proves a viable situation to obtain short-term policies.

You may also know this coverage as temporary, term or gap health insurance. Short-term coverage works well in some cases to ensure you and your family are financially protected in the unfortunate event of an accident or illness. However, consider the points below to determine if this fix is the best option for your situation.

The Benefits of Short-Term Insurance

Financially and medically protecting your family while between policies or waiting on insurance proves frugal with short-term options. The following benefits tend to run true of most temporary policies. Keep in mind, however, that term policies vary just as long-term insurance policies do. Checking the details of the plan you intend to purchase makes for wise decision-making.

At-Will Cancellations

Short-term insurance offers the option of starting your policy inside and outside annual enrolment periods. This fact means no waiting for enrollment dates to roll around before getting coverage. Furthermore, no penalty exists if you cancel the policy early, usually after three months of coverage. Premiums paid in excess are often refunded.

Reducible Premiums

With a variety of term policies available, finding one to fit your budget is possible. You select the people covered and maintain some flexibility in how they are covered. For instance, choosing fewer benefits or a higher deductible reduces your premium. Furthermore, in-full, up-front payments offer a discount.

Other Plan Compatibility

Combining short-term insurance with supplemental policies offers your family comprehensive coverage. Accident, critical illness, dental and vision plans combine well with temporary insurance. Your family’s needs and budget determine the wisdom of adding additional policies to your major medical term insurance.

The Cautions of Short-Term Insurance

While the benefits of temporary insurance seem to make this choice a no-brainer, again, caution is required. The limits and issues of this type of policy make it impractical for some individuals and families. Again, policies vary. However, the following cautions arise with all short-term options.

Limits Exist

Short-term policies tend to cover major health issues only and no prescriptions. Preventative care is not covered either. These limits leave your family unprotected for lesser health issues and drug therapy. Check policies carefully to understand exactly what coverage you can expect. Also, temporary policies are not renewable. Available in one-month windows for approximately one year, this insurance ends whether another policy kicks in or not.

Denial is a Possibility

While obtaining health insurance is mandatory, short-term policy applicants can be denied. And, they are. In other words, your medical history may exclude you from certain policies. Long-term plans are not permitted to deny your application based on medical history under the Affordable Care Act (ACA). The same rules do not apply to short-term insurance. Post-claim underwriting allows for denial of specific claims as well.

Pre-existing Causes Problems

In most cases, pre-existing conditions fall outside the coverage of gap policies. Your state’s definition of pre-existing comes into play here, and medical underwriting is required. However, generally speaking, diagnosis or treatment within the last two to five years denies coverage. Furthermore, these policies fail to cover maternity leave should you or your spouse become pregnant.

Pay for Better Coverage

Options exist to lower short-term insurance premiums. And, the premiums run lower than long-term options. However, you get what you pay for. Reduced premiums mean less coverage and higher deductibles, meaning you pay more out of your pocket. The average premiums run around $110 and the average deductible to be $3,589.

ACA Not Met

Short-term insurance policies do not meet the requirements of the ACA. They fail to qualify as the minimum essential coverage or mandated coverage. Financial penalties exist for those with gap policies unless other exemptions apply. Furthermore, these temporary plans do not qualify for tax subsidies. These breaks exist only under ACA.

The Long and Short of It

With a rise in short-term health applicants, according to Ehealth, gap policies prove worth a look. While the drawbacks lend caution, many health insurance consumers find them attractive when between open enrollment periods or when landing between premium subsidy and Medicaid qualifications.

Calculating the costs of short-term insurance options and penalties helps you discern the best option for you and your family regarding long and short-term insurances. While not a long-term solutions, in some cases, the benefits of short-term coverage outweigh the costs associated, including penalties.

Thank you for reading our blog! How can we help you? Contact us today.

Category: Health Insurance

Navigating the Medicare insurance game proves tricky and complex. With so many options and varying deadlines for each policy, confusion often sets in and overwhelms the average applicant. And with changing regulations, you need quality medical coverage more than ever. What are your options when you miss the Medicare supplemental insurance deadline?

Medigap helps. This supplemental insurance catches some of the medical expenses left to come out of your pocket by original Medicare policies. If you missed your initial enrollment deadline, you may be wondering if you can still take advantage of this supplemental insurance. Fortunately, you have options. Let’s take a look at what Medigap is and what to do if you missed the deadline.

What is Medigap

Medigap offers additional coverage to your original Medicare policy. In short, you must be Medicare eligible and a recipient of it. The supplemental insurance, Medigap, brings peace of mind by helping pay deductibles, copayments and coinsurance, not covered by your original policy.

Keep in mind: Medigap fails as a cure-all. This insurance does not cover vision care or eyeglasses, dental care, hearing aids, prescriptions, long-term care or private nursing. Also, some insurance plans, such as the Medicare Advantage Plan, do not partner with Medigap.

However, Medigap policies provide extra coverage for hospital and doctor services which otherwise drain finances. You get a choice in the level of coverage you want and pay a monthly premium based on the plan chosen. Purchased through private insurance companies, the premiums vary.

What If the Medigap Deadline Is Missed?

Initial open enrollment for Medigap runs for six months from the first day of your birth month, in the year you turn 65. For instance, if you turn 65 years old on October 20, 2018, your enrollment period runs from October 1, 2018 through April 1, 2019. But, what if you realize this period has passed?

All is not lost if you missed the deadline. Check out the following circumstances when you might apply for Medigap after the initial open enrollment deadline.

Medigap Guaranteed Issuance

Some applicants are guaranteed Medigap coverage. If you fall into one of the following categories, you need not wait for an enrollment period to apply:

– Your employer-sponsored supplement to Medicare ends.
– You lose eligibility for an employer’s plan due to divorce or death of the member or the company reduces benefits for any reason.
– Your Medicare Advantage Plan raises premiums or copayments by 15 percent, reduces benefits or the plan ends.

Pre-existing Conditions

When Medigap applications follow continuous creditable coverage, you cannot be denied based on a pre-existing condition. In the case of pre-existing conditions, Medigap becomes more difficult to approve outside the initial enrollment period. Your application can be denied.

However, knowledgeable insurance agents help you choose and obtain the Medigap plan which fits your needs, even if you miss the enrollment period. Medigap policies may accept your application but refuse to cover pre-existing conditions for up to six months. After that period, they must cover the condition.

Switching to Medigap

If your enrollment with Medicare Advantage made you ineligible for a Medigap policy, switching to Medigap opens a door after the enrollment period. The best times to make the change are:

– Special enrollment periods
– The Annual Election period (from October 7 through December 15)
– And, the Medicare Advantage Disenrollment period (January 1 through February 14)

Eligibility requirements must be met. And, keeping your Medicare Advantage until approved for Medigap proves wise. Again, an expert helps identify the ideal times to apply and the best companies to work with while navigating deadlines and details.

Changing Medigap Plans

Several Medigap plans exist. Several insurance companies offer the policies. Should you need to change plans or insurance companies to one which better meets your financial and health needs, you may do so outside the open enrollment period.

Most states require a new application and a set of medical questions. This raises the chance of being denied on pre-existing conditions. Several states allow switching with no medical review. A financial penalty may also be involved. Seeking knowledgeable council helps you understand where your state falls on these issues.

What is Best for YOU?

Determining the best plan with the least amount of red tape, deadlines, and fees may overwhelm you. Furthermore, private insurance companies set prices and determine rules for eligibility which complicates the shopping process.

You are not alone. Seeking the help of knowledgeable insurance agents ensures that you do not miss deadlines or open enrollment periods. It also sets you on a path to finding the best Medigap option for you both medically and financially, even outside the enrollment period.

So, can you still qualify for Medicare Supplemental Insurance? The answer: Likely, yes.

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Category: Medicare Supplements

gap in medical insurance The purpose of health insurance is to make sure that you are covered in case of an emergency, if your health suddenly worsens or if you need to deal with a chronic condition that you would otherwise never be able to afford to treat. However, no matter how diligently we plan out our insurance coverage and work to make sure that we have everything we need, every so often we might experience gaps in our coverage — and if this happens, it can be worrying (not to mention costly) to go without insurance for a while.

However, if you experience a gap in your medical insurance coverage, you have options — besides paying the monetary fine exacted for not having health coverage, which is required under the Affordable Care Act. You might be facing a gap if you suddenly lose your job and no longer have access to your workplace insurance, or if you will be enrolling in a group plan but your coverage doesn’t start for another few months. In any case, you can take steps to make sure that you are insured at all times.

Open Enrollment

To start, if you leave your job and will no longer have access to job-based insurance, you can buy a plan on the federal insurance marketplace. Each year, the Marketplace has an Open Enrollment period (From October to December) during which time people can enroll in health care plans for the upcoming year; however, losing your job-based coverage (whether it’s because your quit or were fired) entitles you to a Special Enrollment Period during which time you can buy insurance. Your new policy can begin on the first day of the month after you initially lost your insurance.

COBRA

Then, there’s COBRA continuation coverage, which allows you to keep your employer-based health plan for a period of time (usually 18 months) after you leave your job. COBRA is a federal law that is meant to cover the gap for people who lose their insurance suddenly, while they look for alternate forms of insurance that can start officially within the next year. With the COBRA plan, you pay the insurance premium and an administrative fee, but don’t have to deal with the nitty-gritty of getting an entirely new policy (For at least a while).

Private Insurance

On the private insurance market, you can find policies that cover gaps ranging from one month to one year. These policies will incorporate different benefits, so that you can choose the one that works best for you and is in the price range that you are willing to pay. Features can include office co-pays, prescription drug coverage and low deductibles, for example, and you can decide whether you want (and are willing to pay for) a plan that includes these things or not.

Consider Your Health

Furthermore, the state of your health can also affect the short-term insurance plan that you choose to purchase. For example, people who are medically underwritten to receive short-term insurance sign an agreement stating that they don’t have any medical conditions that would prevent them from qualifying. Under the Obamacare law, the provision banning discrimination on the basis of pre-existing conditions does not apply to short-term insurance policies.

Guaranteed Issue

A guaranteed issue plan, meanwhile, can be beneficial for those who have ongoing health concerns and just need to bridge a gap between their current health coverage and a group plan or Medicare policy that they will soon have. Typically, these plans will not cover preexisting conditions, but will keep you insured against unforeseen circumstances while you wait for your full coverage to kick in.

Location and Restrictions

Unfortunately, due to the location in which you live, the duration of your short-term health insurance plan may be restricted; For example, some states only allow short-term insurance plans that last a maximum of six months; this means that you will soon have to purchase and qualify for a full health insurance plan. Obamacare policies shorten the time line with three months on a short-term plan in order for you to avoid paying the penalty.

Under the current rules, short-term policies do not meet the standard of Minimum Essential Coverage. So it’s important to figure out what the rules are where you live, and to pick out your short-term insurance based on that. Ultimately, you can fill the gap in your medical insurance coverage with short-term insurance policies, as well as the public options listed above that form a more long-term solution.

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Category: Health Insurance

With Medicare Open Enrollment now underway until December 7, you may be starting to reconsider your coverage and decide whether you want to switch to a different policy. Or maybe you’re a first-time enrollee and are looking for some more information on which plan you should sign up for and what benefits are worth considering. Either way, it’s important to know what your options are so that you can commit to the best Medicare prescription drug coverage for you. Thankfully, you still have plenty of time to do so before the enrollment period ends.

One of the main aspects you should consider is buying medical prescription insurance — also known as Medicare Part D. It’s the Medicare plan that covers drug prescriptions and is typically purchased in conjunction with other policies or as part of a supplement package. However, you may be unsure if you need this type of insurance, or how you should combine it with other health care policies if you do decide to get it.

This article aims to answer some of your questions and provide a clear-cut, essential buyer’s guide to Medicare prescription insurance in your market.

Where can I find prescription drug coverage?

If you want to get insurance coverage for prescription drugs, you have several options. Medicare’s drug coverage is offered through plans run by private insurance companies that are approved by Medicare. This coverage can come in two choices: Medicare Part D (the Medicare Prescription Drug Plan) or Medicare Part C (the Medicare Advantage Plan).

Part D adds on drug coverage to an existing Medicare plan like Original Medicare, a Medicare Medical Savings Account Plan, or some Medicare Private Fee-for-Service Plans. Part C, on the other hand, is a more comprehensive policy that includes Medicare Part A (Hospital Insurance) or Part B (Medical Insurance) coverage in addition to Part D.

However, before you buy Medicare drug coverage, make sure that it works with your other medical plan, or isn’t already covered by another form of insurance that you have. Employers or unions might automatically enroll you in a drug plan along with your regular coverage. This can also happen at the Department of Veterans Affairs, the Indian Health Service, or a Medigap policy (Medicare Supplement Insurance). If you already have a drug policy included, then you should talk to your insurer to understand whether getting Part D is necessary.

What do drug plans cover?

A Medicare drug plan covers a specific list of prescriptions, known as a formulary. This list is organized by different “tiers,” each with their own cost. For example, drugs on a lower tier will be cheaper than drugs on a higher level. In some cases, you can get exceptions for particularly necessary drugs that are more expensive and would require a high co-payment that you can’t afford.

Each Medicare drug plan has its own list of covered drugs (formulary). Many Medicare drug plans place medicines into different “tiers” on their formularies. Drugs in each tier have a separate cost.

A drug in a lower tier will generally cost you less than one in a higher level. Sometimes, if your prescriber thinks you need a medication that’s on a higher tier, you or your prescriber can ask your plan for an exception to get a lower copayment.

How much do they cost?

Medicare drug policies operate on the general principle that you will need certain prescription drugs if you fall ill and that you will be willing to pay for insurance because the actual cost of many drugs is so much higher. Medicare pays a predetermined part of the price for your prescriptions and leaves the rest up to you (a copayment). This includes charging a monthly premium and having a yearly deductible (the amount you have to pay out of pocket before your drug policy kicks in).

Along with covering the deductible, premium, and copayment, there may be other costs, like a coverage gap or a late enrollment penalty. Several other factors vary the price of your insurance. Most importantly, the drugs you use and specific plan that you choose. Your costs also depend on whether you go to a pharmacy in your plan’s network, as well as whether the drugs you need are approved by your policy (listed on the formulary). But, you can get Extra Help (a Medicare policy) to help pay for your drug policy if you are low-income or meet other criteria set forth by Medicare.

How do I join?

Once you choose which plan you’d like to enroll in, you can do so during the Medicare Open Enrollment period (October 15 to December 7). Contact us to find out more about enrolling in a plan before the deadline.

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Category: Medicare Part D

Ohio group health insurance Group health insurance is mandated for every company that has over 50 full-time employees. This mandate helps each person working for that company be insured under current health care law. These group insurance plans, which can be purchased from different carriers in Ohio, can be fully-funded, self-funded, limited benefit or minimum essential coverage.

All of these funding options offer different types of coverage in different combinations, at varying costs to the employer. So how should you plan and prepare for the costs of Ohio group health insurance?

Group Insurance Requirements

To start, you should understand what you need to pay. Group insurance plans apply to full-time employees, which are those who work more than 30 hours per week or 120 hours per month. A group insurance plan must have a “minimum value,” meaning that it must pay at least 60% of the cost of services for the employee. But, it also has to be affordable, so employees should not spend more than 9.5% of their household income to cover the cost of insurance.

It’s essential that the group insurance plan you offer meets these criteria because failing to do so will result in a tax penalty of $2,000 per employee (for any number over 30 employees). Also, a $3,000 penalty will apply to all full-time employees who end up purchasing individual coverage. This extra fee occurs because the plan offered by the employer wasn’t of minimum value or affordable.

Beyond these requirements, you can choose if you want to offer more expansive insurance for your employees. These options can include extra products like dental, vision, life insurance, disability, Medicare and long-term care insurance plans. These can reduce costs for employees overall, but there typically needs to be a minimum number of participants for the insurance policy to apply.

Medicare Supplement Plans

You also might expect to buy a Medicare Supplement insurance policy for your employees who are over 65. This is because group Medicare rates can reduce healthcare costs overall. It’s also easy to do because you can use list billing to deduct part of the premium from your employees’ wages if you don’t want to pay the full Medicare coverage. Buying at group rates helps to lower expenditures on employee benefits for your company. But, you will have to set up an exchange for your employees to shop for coverage as most policies are still sold for individuals, not groups.

Understanding the Cost

Are you looking for ways to save costs? The first step is to shop around. You’ll want to consider the different providers that offer group health insurance packages, and compare the prices and benefits of each. These providers include Aetna, Anthem Blue Cross Blue Shield, Humana, Medical Mutual of Ohio, United Healthcare and others. Overall, it’s worth taking a look at how each package sizes up to the others.

Next, consider what kind of policies you would like to offer — whether that means HSA, HRA or traditional medical coverage. You should also decide whether you would like to include life, dental or vision coverage in the plan, or as a voluntary benefits package. Then, work on getting a quote. You should understand what the charges would be for each option and how much your company would be required to pay for that particular type of insurance.

More Ways to Reduce the Cost

There are several other ways that you can reduce costs or find the least expensive way of doing things. If all you want to do is avoid paying the penalty for not offering health insurance to your employees, then you can provide them with a Minimum Essential Coverage (MEC) plan. A MEC covers just enough to satisfy the requirements of the Affordable Care Act and typically costs less than $50 per month per employee. However, the group will have to pay the entire premium, and not just half, as in some other plans like fully-funded or major medical plans.

You can also opt for self-funded plans, which offer less extensive coverage meant for younger, healthier employees who likely won’t need the more all-encompassing coverage you can find for a higher cost. If their yearly claim is lower than expected, some groups may even get their premium returned.

What’s the Bottom Line?

It’s vital to consider which of the above policies best meets the needs of your employees. For example, if you have many older employees, the self-funded plans may not cover all of their healthcare expenses. As such, they may need extra coverage like Medicare Supplement plans.

Also, think about how much you want to pay as an employer and what would benefit you the most — whether it’s offering minimum coverage or full benefits.

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Category: Group Health Insurance

when open enrollment Medicare Medicare open enrollment is currently underway from Oct. 15 to Dec. 7 of this year. This means that if you want to change your coverage or add a supplemental insurance plan, this is the time to do it. All new insurance policies take effect on Jan. 1, 2018. But, before they do, you have some time to learn about the different options and pick the one that works best for you.

During open enrollment, you can either join a new Medicare Advantage Plan or add on a stand-alone prescription drug plan (Medicare Part D). If you are enrolled in a Medicare Advantage Plan already, you have the option of switching to Original Medicare if you no longer need everything that plan offers. Wondering what exactly you should do when open enrollment for Medicare begins? Here are some essential steps to take:

1. Understand the Terminology

If you’re confused about the different terms being tossed around during this period or are unsure about what something means, this is the time for you to do some research and learn more about the different plans and terms used to describe Medicare options.

Medicare Advantage Plans are health insurance plans that are required by law to cover the benefits of Original Medicare Parts A and B. They also often offer extra coverage, such as prescription drug plans and dental, vision or hearing benefits. Medicare Advantage is administered privately. Although you will still get all of the coverage that Medicare Parts A and B offer, it will go through a private insurance company instead of the government. Medicare Part B premiums will still be paid to the state. Also, hospice care will be administered by the federal government if it is included in the policy.

Medicare Part D is a Medicare policy that subsidizes the cost of prescription drugs, which may be necessary if you have a condition that requires you to buy expensive prescriptions often. It can be purchased as a stand-alone policy, combined with Original Medicare or included in your Medicare Advantage plan. Most of the time, you can mix and match depending on what your other medical insurance needs are.

Original Medicare encompasses two policies: Medicare Part A and Medicare Part B. These offer different benefits with different deductibles, premiums, and copayments. For each plan, you will have to pay a deductible for your health care costs. This deductible is a minimum amount that you need to pay before the government covers the rest. For Medicare Part B, you also need to pay monthly premiums. For both kinds of plans, it’s common for you to have a copayment for health treatment once your deductible is paid.

Supplemental plans (also known as Medigap) cover the out-of-pocket costs that you may have to pay if you have Original Medicare. Some examples include cosmetic surgery, foreign health care, hearing aids and exams, long-term care, most eyeglasses, dental care, and dentures. You can buy these plans from private insurance companies. Any costs incurred that aren’t covered by Medicare are automatically forwarded to your Medigap policy.

2. Think About Your Needs

Which plan you choose, and thus how much you pay, will depend on your individual medical needs. For example, if you expect that you will be spending a lot out of pocket for prescription drugs in the upcoming year, you should consider enrolling in a Medicare Part D or Medicare Advantage plan that covers prescription drugs. If you plan to travel a lot and want an insurance plan that includes health care you receive abroad, Medicare Advantage might be the best choice for you.

3. Shop Around

There are many different policies offered that all cover various types of benefits at varying costs. As such, make sure to consider the overall price of each and which services you need the most. Because there are so many options, compare each carefully. In other words, shop around. Don’t just find the first policy you think looks right for you and stick with it — think critically, and look for something better and cheaper.

4. Don’t Be Hasty

You have all the way until Dec. 7 to make a decision, so take your time. Start doing research now, and don’t leave the application until the last minute. This way you can be sure that you’re making the choice that’s right for you (and not just made under pressure).

However, if you do make a decision that you’re unhappy with later, you do have a chance to change it. From Jan. 1 to Feb. 15, you can switch out of a Medicare Advantage plan and back to an Original Medicare plan if you regret signing up with the former during open enrollment.

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Category: Medicare Advantage, Medicare Supplements

best annuity options No matter how old you are, thinking about retirement is essential. Not only is employment changing — with more people being self-employed, it’s less likely that you’ll have a cushy pension to fall back on after you retire — but the very existence of retirement benefits like Social Security may not be as stable as we believe.

It’s crucial that you think about how you’re going to support yourself after you retire. Also, it’s more important to have this conversation with yourself at a younger age. That’s because it gives you more time to prepare thoroughly. This is better than realizing just a few years before you retire that you don’t have a plan for how to proceed. Also, funds invested years earlier will grow larger given more time, ensuring that you have as much money as possible by the time you decide to retire.

One type of retirement savings option is an annuity. This is an incredibly helpful tool that can make the difference between a comfortable retirement and a stressful one.

What is an Annuity?

An annuity is a sum or series of payments that you will receive after a specific date. You pay for it for earlier by drafting an agreement with a third party, such as an insurance company. You start by paying a lump sum, and in return, the insurance company will grow your assets and then pay you an income for a period that you decide, or for the rest of your life after a certain age.

The annuity will also include a death benefit paid to your family as well as long-term care benefits. These benefits may become necessary depending on the state of your health later on in life.

Time-wise, annuities can be divided into two categories: life annuities and period-certain annuities. A life annuity is meant for unmarried people who want to receive automatic monthly payments for the rest of their lives. These payments stop upon their death. Period-certain annuities, meanwhile, continue for a fixed period (usually 10 to 20 years), even if the participant and their spouse die before it expires. At that point, the annuity will be paid to a beneficiary, like a child or an heir.

If you’re looking for the most flexibility possible, you can purchase an annuity that provides for both possibilities. It is called a life annuity with period certain. This means that the annuity will either last for life or for the specified time — whichever lasts longer.

What Types of Annuities Are There?

There are two kinds of annuities: fixed and variable. Fixed annuities guarantee the principal on your investment and pay out a pre-determined sum each time. This means that your gains are not influenced by interest rates or current market fluctuations, which many see as the safer and less risky option. That’s why fixed annuities are excellent as an insurance policy rather than an investment.

There are several types of fixed annuities. First are immediate annuities (which start paying income in less than one year). Next, you have deferred annuities (which begin paying after one year), then multi-year guarantee annuities (which last for a particular time and pay the same interest rate each year). Finally, there are indexed annuities (which increase in value depending on how a particular index performs — like the Dow Jones or the S&P 500).

Variable annuities, on the other hand, will pay you a different amount depending on how your initial account performs. As such, they’re not necessarily as stable as fixed annuities and are meant to be an investment that involves some amount of risk. However, the potential reward is higher as well.

What Other Annuity Options Do I Have?

You can purchase some annuities in the form of spousal benefits, which will be paid to the surviving spouse upon the death of the annuity participant. These typically are between 50 and 100 percent of the annuity that the participant receives. They can also be waived in place of a lump-sum payment (as long as the participant’s spouse consents and the transaction has a specific witness).

There are two types of spousal benefits. First, there is Qualified Pre-Retirement Survivor Annuity (which provides payments to the spouse before they retire if the participant dies before retiring). Second is the Qualified Joint and Survivor Annuity (which is more typical, as it provides a life annuity to the person purchasing the plan and survivor benefits to the spouse).

This second type of spousal benefit makes payments from a specified plan or 403(b) account. However, it can also apply to other plans, like profit-sharing, and 401(k) plans. You need to specify the type of program when you sign up for the annuity.

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Category: Annuities

long-term care cost If you’re getting older, you’ve probably thought about what kind of insurance you’ll need to cover health issues and medical expenses, from medications to specific procedures. But in some cases, for chronic conditions, disabilities or illnesses, long-term care will be necessary — whether this means staying in a nursing home, hiring a live-in caretaker or modifying your home to meet your needs.

However, long-term care cost is not covered by employer-based health care plans, and Medicare only covers some options, like short-term stays in nursing homes. So how can you go about paying for long-term care if it becomes necessary? That’s where long-term care insurance comes in — it’s a particular policy that you can buy which will help pay for the essential expenses, depending on what kind of plan you have and what your specific needs are.

What plans are available?

The first type of long-term care plan is an individual policy, which will vary in price and coverage depending on where you buy it. Just make sure that you’re buying from a licensed insurance agent or broker who has special training in long-term care, if possible.

It’s also possible to get long-term insurance through your employer, which may offer you a group plan or an individual policy at a discounted group rate. One benefit is that your family members might qualify if they pay premiums and pass medical screenings; another is that once you leave your job (for retirement or any other reason), you can keep the policy as long as you continue to pay premiums. You could get a similar offer from a professional or service organization you belong to, so make sure to check with any groups you’re in to see if they have such a membership benefit.

Another possibility is getting long-term care insurance through a State Partnership Program, which would allow you to continue to qualify for Medicaid while also letting you keep your assets. Finally, you can take out a joint policy with a spouse or family member, though this might be limited because of the maximum benefit that applies to total expenditures on long-term care for both people.

What services do they cover?

Long-term care insurance can cover a variety of services, all of which may not be offered in all plans. There could also be restrictions, such as some plans require the care provider to have a specific license or work out of a specific facility, while others will cover care by non-licensed professionals or family members. Make sure you look for a policy that will cover your specific needs and desires when it comes to the types of facilities and care options you want.

The main care options you will need to consider are nursing homes, assisted living facilities and home care. Nursing homes are live-in facilities that provide health care, daily activities and room and board, while assisted living is a more autonomous apartment-style option where personalized services (like meal delivery or health care) are available if desired. Finally, in a home care situation, someone will come to your home to help you with basic services like personal care and housework. Depending on what type of care you’re looking for, seek these services out in a policy.

Another service that may be offered is adult day care, which takes place outside the home and provides you with support services like health care and social activities if you need these in a limited capacity. Finally, home modification may be covered to help you install adaptations like ramps to help you better access and feel more comfortable in your home.

A few other things to keep in mind are whether the policy offers care coordination — which essentially ties in the different types of care by helping you locate services based on your needs — and future service options if a new type of care comes out after you’ve already bought the insurance policy.

How do I decide what to buy?

When it comes to deciding what type of insurance policy you should get for long-term care, consider money first — how will you be able to afford the premiums, and which policies fit better within your budget? You should also consider other financial aspects — your income, your assets and investments and your taxes — to determine whether it’s even viable for you to pay thousands of dollars a year for a long-term care policy. If you see that it may be difficult, consider what kind of support system you already have in place — family, friends and loved ones who may be able to help assist you in your daily living in a more informal way.

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Category: Long Term Care

If you’re currently on Medicare, you are probably keenly aware of everything that it covers. From surgery to physical therapy, this government entitlement benefit provides health insurance for Americans 65 and older who have worked into the system and are now retired. But although Medicare is relatively comprehensive, it doesn’t cover everything — which is why some people choose to purchase affordable Medicare Supplement Insurance plans to help fill in the gaps.

What is Medicare Supplement Insurance?

Also known as Medigap, Medicare Supplement Insurance is sold by private companies to cover the costs that Medicare doesn’t — like copayments, coinsurance, and deductibles. If you have significant healthcare needs, Medicare Supplement Insurance can be more economically viable than paying for each non-Medicare item separately. And because law regulates prices, you don’t need to spend too long deciding which company you’re buying your policy from — instead, you should consider what type of Medigap plan you need.

The different plans, which range from A to N, vary in the gaps they cover and the cost of the policy. Supplements include lifetime reserve, long-term hospital stays, hospice coverage, skilled nursing, preventative care, foreign travel emergencies, deductibles, and coinsurance. Plan F is the most comprehensive, covering all possible supplements; however, it is also the most expensive. Plan F has a high-deductible (HD) version, which has a $2,200 deductible for 2017 and has lower rates in most states than a traditional Plan F policy.

Plans G and N also cover a significant number of supplements and may grow in popularity due to new legislation which bans the sale of supplements that cover the Part B deductible, starting in 2020. Plan G fills all the gaps in Original Medicare except for the Part B deductible, which is fairly small — only $183 in 2017. In comparison, Plan G premiums can cost up to $20 less per month than Plan F. Plan N also does not cover the Plan B deductible as well as Part B Excess Charges, but it covers office copays instead — providing a maximum of $20 for doctors and $50 for ER visits.

What about prescription drugs?

Unfortunately, the one thing Medicare Supplement Insurance doesn’t cover is prescription drug plans. These plans still have to be purchased separately under Medicare Part D. Another consideration is that depending on your income, you may be charged more for Part D (as well as Part B), which may affect your decision of which Medigap policy to purchase. Something else to keep in mind is that Medigap only covers insurance for one person, so if you want to get supplemental insurance with your spouse, you will need to purchase two policies.

What are some reasons to purchase Medicare Supplement Insurance?

Medicare Supplement Insurance is popular because it helps insure medical expenses that Original Medicare doesn’t cover — so if you expect to need any of services that happen to be Medicare gaps, like hospice care or foreign travel emergency care, it makes sense to buy Medigap so that these gaps are filled. On your own, you can rack up a bill worth tens of thousands of dollars, which is why many people choose to purchase an insurance policy instead. Medigap is also helpful if you expect to have a high deductible or high copayments, which specific policies can cover for you.

Medicare Supplement Insurance is also becoming more critical as more and more people are eligible for Medicare. In the United States, nearly 11,000 people will turn 65 each day for the next 13 years, and almost 20 percent of the population will be 65 or older by 2030. The addition of so many Medicare-eligible Americans means that the system will be stretched to its limit — which makes it even more crucial to have insurance that can help fill in the gaps in Medicare coverage. Medigap policies are automatically renewable, which means that even if you develop health issues that start costing the insurance company a lot of money, they are not legally allowed to prevent you from continuing to pay your premiums.

Finally, it makes sense to pick the insurance company that provides the better discount, customer service, and rate stability for Medigap insurance. However, the list of companies offering Medicare Supplement Insurance is long, and you don’t want to spend time calling each one to determine their policies and offers. That’s why it makes sense to go through a reputable brokerage that provides you with each company’s rates at no additional cost and advise you as to the best place to purchase your insurance.

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Category: Medicare Supplements

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