Health Insurance Blog

As the economy struggles and health care costs rise, more and more employers are limiting or eliminating benefits through work according to the article “How Limited Benefit Plans Can Save You Money” by Chelan David found on sbonline.com.  Because of this the practice of offering small medical health plans is growing in popularity.

Limited benefit plans charge individuals as little as $50 per month for routine medical care.  They are designed to replace major medical coverage for those who cannot afford regular insurance.  Many companies offer such options such as Go Blue Florida.  Limited benefit plans have their pros and cons.  They are very inexpensive month to month but typically major medical costs are not covered.  Another con is that mental health care is not usually covered.

It’s important to weigh the pros and cons of going with the smaller plan like Go Blue Health Insurance, or the major plans through Blue Cross Blue Shield.  It depends on your health, lifestyle, dependents, age, and financial situation which plan will work best for you.

Blue Cross Blue Shield of Alabama has kept a close watch on the health care reform debate.  They fully support health care reform to improve medical care to all patients.  For over 70 years BCBSAL has tried to improve health care in Alabama.

Like many health insurance companies, BCBSAL has some concerns about some of the possible federal legislation that may pass.  They worry some of the proposals will have a negative impact on Alabama patients.  One example is the proposal that would create a new plan run by the government and could jeopardize access to coverage as well as affordability to the 160 million people receiving health benefits through their employers.

Another provision would make it possible for people to wait until they need medical care to purchase health insurance, which would make it more expensive for everyone paying in regularly.  It is still uncertain how the debate will pan out, but BCBSAL remains committed to earn the confidence of their customers and keep costs low for as many members as they can.

Humana Insurance announced in February that they will be cutting their workforce throughout the course of 2010 according to their website.  They will be dropping about 1400 positions, which is about 5%, throughout 2010.  They will be balancing 2500 job reductions with the addition of 1100 jobs in areas that are experiencing growth.  The job cuts will come from attrition, outsourcing, process efficiencies, and the elimination of positions.

Some of the areas experiencing growth right now are medicare cost containment capabilities, pharmacy management, and specialty products.  By growing these lucrative areas Humana can focus on saving money for their members and offering lower Humana insurance quotes.  Humana’s President and CEO Michael B. McCallister regrets the loss of jobs, but says it’s necessary for Humana growth.

All employees affected by this plan will have a 60-day notice period at Humana.  Human Resources plans on working closely with the affected employees to help them find internal positions or outplacement assistance.  Severance packages and continuation of health benefits will be offered.  It seems that no industry is safe from job cuts.

Health savings accounts are a useful tool many consumers can use to save wisely.  A health savings account (HSA) is an alternative to a traditional health insurance policy.  It can be used along with your health insurance as well.  It’s a savings account that allows you to pay for health care items out of this account specifically.

HSAs make it possible for you to pay current health care expenses and save for future expenses on a tax-free basis.  Many employers and insurance companies such as State Farm Health Insurance offer HSAs.  In order to take advantage of this type of plan you must have a High Deductible Health Plan which generally costs less than traditional health insurance.  They money that you save on monthly premiums can be placed into your savings account.

There are many benefits to taking advantage of an HSA.  You own and control what goes into your HSA.  You make decisions on how to spend the money on the HSA, as long as it is an approved medical expense.  You can also control the type of investments you put your money into.  Look into getting a HSA if you think it will work for you.

Canadian Kristie Moore, age 30, is 5 1/2 months pregnant and is an Winter Olympic alternate in Vancouver according to the article on Yahoo Sports by Chris Chase.  She is an alternate for Team Canada’s curling team and has yet to be called upon but it’s a possibility.  It’s a shocking story but from all accounts Moore is fit, in shape, and up for the challenge.

Moore is only the 3rd known Olympic athlete in history to be with child.  The first was Swedish figure skater Magda Julin 90 years ago who won a gold medal in her first trimester.  In 2006, Germany’s Diana Sartor came in 4th in the skeleton.

Moore found out she was pregnant a few weeks before she was asked to join the team, and when she shared the news with them everyone was supportive.  She should have no problem finding health insurance and having proper coverage while she spends this time at the Olympics.  With Canada being strong contenders for a gold medal Moore is bound to have an exciting few weeks whether or not she competes.

To fill the need of those looking for short term health insurance in these tough times, Humana One has extended its short term health insurance to five more states.  These states include Illinois, Iowa, Missouri, Georgia, and Kansas.  With these 5 new states Humana One now offers short term health insurance to 20 states total according to their website.

This is great news for many consumers in these states as the need for short term health insurance is increasing with the unemployment rate.  The design of the program varies from state to state, but they are quality benefits throughout.

Short term health insurance offers immediate and affordable health care coverage for those who are in between jobs or in the middle of a transition.  It’s a great opportunity for students who are about to graduate, seasonal employees, recent retirees waiting to be eligible for Medicare and those who are unemployed looking for new work.  It can be a very convenient option for many and it’s worth getting Humana Insurance quotes if you are in a state of transition.

According to the article “Married, with Benefits: California Mom Terri Carlson Starts Will Marry For Health Insurance Web Site” by Rosemary Black on nydailynews.com, a woman desperate for good health insurance because of a chronic condition has started a campaign online to get a husband with excellent health insurance.

Finding health insurance has not been easy for Terri Carlson because she hasn’t been in the work force long enough to qualify for social security, but her COBRA is about to expire in May.  She has an autoimmune disease which prevents her body from fighting infections so she needs to take 10-20 different prescriptions everyday.  She knows that finding individual health insurance for herself will not be easy.

The 45 year old divorced mom did realize though, that if she married a man with excellent health benefits she could automatically be placed on their health insurance policy and her problems are solved.  Well, her old problems are solved.  It seems like she may have a new list of problems if she marries a stranger just for health insurance coverage.  This just goes to show how important health care reform really is.

Both the House and Senate have passed their versions of health care reform according to the article “Understanding Key Provisions in Federal Health Care Reform” found on Business Journal’s website.  Congressional negotiators are currently working on an agreement between the two bills.  The full House and Senate must approve the package then it’s presented to the President to sign it into law.

It’s predicted to take until at least mid-February before an agreement is reached and it wouldn’t start until 2013 and possibly longer for certain plans.  In 2014 and years after, the health care reform plan budget would increase to match the Consumer Price Index, plus 1%.  Insurance companies and plan administrators would pay this extra tax.  Under the House bill there would be a penalty for each employee not covered by health insurance of 8%, and under the Senate bill the penalty would be $750 per employee not protected.

The article points out that about 30 million of the country’s 46 million uninsured would get health insurance, mostly through federal health insurance subsidies under the new plan.  Health insurance companies would have to redo their criteria for approving policies such as stopping exclusions for pre-existing medical conditions.  This is an important point for those shopping for individual health insurance who have been turned down previously because of an chronic illness they may have.

Health exchanges are included in Congress’s recent health care reform bill.  The article “Health Exchanges: What are They” on healthcentral.com defines a health exchange as a government sponsored market for buying health insurance.  It would be available to people not working for large companies and not on Medicaid, Medicare or any other public program.  Health care reform would result in approximately 30 million Americans using health exchanges to receive their health insurance.

This type of program has pros and cons.  It’s based on the philosophy of managed competition.  Only pre-approved health plans which meet government standards may compete in the health exchanges.  There is much debate over who would control these exchanges.  It can be controlled at state level or national level or a mixture of both.  There would need to be a consistent and fair way to get consumers affordable health insurance quotes.

The article “Collaborate on Health Exchanges” by Gary Lauer on USA Today’s site points out that America is so diverse, and no single approach is going to meet every consumer need.  In order for such a system to work, it will require a collaborative effort to get eligible Americans enrolled into exchanges quickly and smoothly and have significantly more people insured, which is Congress’ ultimate goal.

According to the article “An Extended Subsidy for COBRA Health Coverage” by Kimberly Lankford on The Washington Post’s website, Congress has extended the COBRA Subsidy from 9 months to 15 months.  This is great news for those whose subsidy was coming to an end, still unemployed and worrying about finding affordable individual health insurance.

Last year’s stimulus package originally set up the COBRA subsidy for those who lost their job between 9/1/08 and 12/31/09.  It covered 65% of their COBRA health insurance premium for up to 9 months.  While this was extremely helpful to many, the 9 months is coming to an end for some and unemployment is still up.  With the newly amended law that occurred in late December, these individuals have another 6 months to find relief.

If you were receiving the subsidy, there is nothing you need to do to continue receiving it.  You continue to pay the 35% to COBRA and your former employer is reimbursed by the government for the remaining 65%.  Once your 15 month subsidy expires, you will be responsible to pay for 100% of the premiums in addition to an administrative charge.  COBRA coverage generally only lasts 18 months.

With health care reform just around the corner this may change as well, in addition to changes in medicare supplement plans. It’s important to ensure you have the most up to date information on COBRA and other government health insurance programs.