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Saturday, September 24, 2011

How to make smart decisions during health care open enrollment

Sep 13, 2011 08:55 AM EDT

HSAs often accompany high-deductible plans. With HSAs, consumers pay lower premiums in exchange for higher deductibles. (©Hemera/Thinkstock)

Busting the top 9 myths of credit card usageHow to create a budget on a fluctuating incomeHow to make smart decisions during health care open enrollmentWhat the Fair Debt Collection Practices Act means to youWhat to know about retirement planning nowTeach your kids about spending, saving and debtWhen going back to school, hit the books, not the plasticHow to find quality financial adviceHow to save money on bank fees
By Andrew Housser

As autumn approaches, many U.S. workers will be receiving information about open enrollment periods for health care. During these periods, employees can choose to join or change health insurance plans. Whether this applies to you or not, autumn is a good time to evaluate your health insurance coverage and make sure you have the coverage you need. Here are some suggestions for how to make decisions about medical insurance.
1) Know your coverage option.

Learn about different types of health insurance plans to find out what kind of coverage is best for you and your family. Ask your employer's human resources office for information, and search online. The basic types of health insurance plans are:

1.HMO -- Health maintenance organizations, or HMOs, usually charge lower monthly premiums in exchange for having fewer covered doctors and services you can choose among. If you choose this option, check to see if your doctor is available in the network. These plans also cover preventive care such as annual check-ups. If you go outside the network, though, you won't be covered.


2.PPO -- Preferred provider networks, or PPOs, also use a network approach to limit costs. These plans do allow out-of-network care, but it is covered at a lower rate. Premiums are slightly higher than with an HMO. Preventive care might or might not be covered.


3.FFS -- Fee-for-service (FFS) coverage refers to "old-fashioned" health insurance where the doctor bills for individual services and the health insurance pays for services it has specified, at a pre-determined rate. You might have to pay out of pocket and be reimbursed. Some services will be covered and others will not, depending on the contract.

2) Join forces with employer plans.About 44 percent of U.S. workers are covered by employer-sponsored health plans. Another 25 percent receive government-funded coverage (whether from Medicare, military benefits or another source). These plans are often more affordable and might have more extensive benefits than individual insurance. But for some people, individual insurance is the only option -- or is more cost-effective. Review all your options to find the best one.

3) Evaluate an HSA.Health savings accounts (HSAs) often accompany high-deductible plans. With HSAs, consumers pay lower premiums in exchange for higher deductibles. The consumers then save pre-tax dollars in a dedicated HSA. They can cover the cost of deductibles or pay other medical bills from these HSA accounts, tax-free. HSA funds that are not used in one calendar year roll over to the next. Do be aware that today, however, only certain plans qualify for an HSA. Even if the plan has a high deductible, it might not be designated "high-deductible" for HSA purposes. Usually, premiums are lower for non-HSA plans. Compare the tax savings you would receive with an HSA and expected medical costs to the premium savings for a non-HSA plan before making a choice.

4) Compare apples to apples.Understand what your costs could be with each option. A pricier HMO plan that combines low co-payments, covered treatment for a child -- from wellness to winter colds -- and covered prescriptions might pay off in the end. A high-deductible plan's lower premiums look good, but does your cash flow allow enough flexibility to pay a $500 deductible for a procedure if one is needed during the year. Estimate your anticipated costs over a full year with each health insurance option. Don't forget to include premiums, office visit co-payments, prescriptions, alternative care such as massage and chiropractic, and other care such as mental health care that one plan might cover while another does not.

5) Don't forget Medicare.Medicare open enrollment takes place at the end of each year. During open enrollment, Medicare beneficiaries can choose among different health plan options and coverages. As with any health plan, open enrollment is a good time to check up on the coverage you have selected.

6) Use up FSA balances.A health flexible spending arrangement (FSA) is a tax-benefited account that allows employees to be reimbursed for medical expenses. Employees choose an amount to contribute to their FSA account each pay period. The FSA deductions can be taken pre-tax, with no income tax paid on the amount. Employees then submit proof of medical expenses to be reimbursed by the employer or FSA account administrator. If you have an FSA, plan ahead to use up the entire amount you have deducted from your pay during the FSA plan year. If you do not use it, you lose it -- unlike an HSA, these funds do not roll over from year to year. Open enrollment is a good time to check your FSA balance.

7) Negotiate medical costs.If you have medical costs that insurance does not cover, you may be able to negotiate them. Contact the doctor or hospital's billing office and ask what options they provide. For example, some providers will offer a discount for cash payment or will set up a monthly payment plan.

8) Get a second opinion.Of course, a second opinion can help make sure you receive the right care. But it can also help with your medical expenses. Especially for major procedures, check with several providers to be sure you are paying appropriate costs.

Keeping a close eye on your health care costs can help you breathe easier. It can also help you avoid going into medical debt, one of the most common causes of debt problems. Best of all, you can make sure you are able to receive the health care you need -- without breaking the budget

Friday, September 23, 2011

Learn More about health insurance for business

Everything small business owners need to know about offering health insurance. An unbiased resource on cost estimates, tax savings, coverage options, legal rights, and more.


So you’re thinking about buying health coverage for your business, but you’re not sure if it’s the right decision. Here you can find clear, independent information on whether group coverage is a realistic option.

If you’ve decided that insurance is right for you, we help you get the job done here. Step-by-step you’ll get organized, find plans that are best for you, read tips on working with a broker, negotiating the deal, and implementing the plan.

Select a topic for answers to specific questions and useful links to other resources.
Benefits, Providers, and Costs

Benefits of Providing Coverage
Cost-Sharing
Choice of Providers
More…


Purchasing Coverage

Plan Value: Balancing Benefits and Costs
Budgeting and Cash Flow
Brokers
More…



Coverage Types

Preferred Provider Organizations (PPOs)
Health Maintenance Organizations (HMOs)
Health Savings Accounts (HSAs)
More…


Laws and Rights

Rights and Rules for Small Employers
Tax Implications
Guaranteed Issue and Renewal
More…



Eligibility and Enrollment

Coverage Rules vs. Options
Eligible Employees and Dependents
Enrollment Options and Procedures
More…


Other Resources

Tax and Business Resources
Insurer Rating Companies
Health Savings Accounts
More…


Looking to learn more:

Thursday, September 22, 2011

More Young People have health care today!

The Department of Health and Human Services announced Sept. 20 that roughly a million more young people between the ages of 19 and 25 have health insurance coverage in the first quarter of 2011 than did in the first quarter of 2010. The National Center for Health Statistics also said the percentage of young people covered has gone up from 66.1 percent to 69.6 percent.

The increase, according to the Department of Health and Human Services, is due to the Affordable Care Act (ACA), implemented in September 2010, that allows children to remain on their parents' health insurance policies until age 26. The act is a provision under President Barack Obama’s health care overhaul, commonly called Obamacare, that was approved last year.

HHS Deputy Assistant Secretary for Health Policy Richard Kronick said because of recent survey results and the sheer number of young people now covered, he feels it’s the ACA that is causing the upswing.

"We feel quite confident in attributing virtually all of this change to provisions in the ACA," he said. “Starting in the fourth quarter of 2010 and continuing in the first quarter 2011, there was a sharp increase in coverage ... At same time coverage was stable or declining slightly for older Americans, ages 26-64. Given that timing ... It's very hard to imagine what else this could be other than the ACA."

What this means is that young adults who were previously dropped from their parents’ insurance in their early 20s – or who were heading toward being dropped because of their age – will now be able to remain covered until their 26th birthday.

Elizabeth Wilson is an aspiring opera singer living in Indiana who was affected by the law and was interviewed by Business Week. When she turned 23, she was dropped from her parents’ health insurance, even though she was in the middle of a health care crisis. At the time she was dropped, she was in the hospital with an inflamed pancreas.

"It means I don't have to spend every penny I make to get health care," said Wilson, who isnow 24. "I can use some of it to further my studies -- or buy food."

The new health care mandates have been nothing if not controversial. Many GOP lawmakers are attempting to repeal the approval of what they call Obamacare, though some of them say they would include the mandate to cover young adults up to age 26 in any replacement legislation that is drafted.

One of the companies that conducted the surveys about the increase in young adults being covered, Gallup, said the age group had been one of the largest groups of uninsured Americans.

"While we did not see a drop-off in any other age group, we did see a drop in this age group," said Frank Newport, Gallup's polling director.

Ads by Google

Californians Are Unprepared for LTC Challenges

Californians are better informed about long-term care issues than at any other time in the last 17 years. However, but fewer than ever are taking steps to prepare for the need for long-term care, according to a poll commissioned by the Dept. of Healthcare Services’ (DHCS) California Partnership for Long-Term Care.

While Californians are three-times more knowledgeable about LTC costs than at any time since polling began, less than 10% of California seniors have long-term care insurance policies. The following chart lists reasons people give for not purchasing LTC in 1994

companies 2011 1994
59% 60% Policies cost too much

55% 66% Haven’t thought about it

32% 29% Family assets and income will cover long-term care

29% 44% Insurance companies cannot be trusted

28% 26% I will probably never need it

25% 24% Family will take care of me if I need it

21% 27% Too confusing and complicated

19% 28% Existing policies don’t meet my needs

6% 22% Government will take care of me
This question was only asked in 2011 and 2005)

For more information

Employee incentives drive lower-cost health care

USA Today - Julie Appleby - By Joe Raedle, So this year, she rolled out a plan that sets limits on how much the company will pay toward a range of tests and procedures, ... Safeway employees in the San Francisco Bay Area, for example, face higher payments if they choose centers that cost more than $1500 for a routine colonoscopy. And in January, the giant California Public Employees' Retirement System (Calpers) said it ...READ MORE:

Wednesday, September 21, 2011

Key Person Disability Income coverage

Key Person Disablity- This can infuse a sum of cash into a business to deal with a loss of a pertinent member of the staff.
If a business has one, two or more important employees - why not cover them in case they become disabled and leave the office scrambling to cover their loss. This product can pay the business each month - or it can pay one lump sum.

Thursday, September 15, 2011

Why Employees may not care? HR Solutions

Pay only goes so far. Higher salaries are like the bigger house syndrome: Move into a bigger house and initially it feels roomier, but after awhile larger becomes the new normal.




Employees don’t automatically perform at higher levels if wages are higher because commitment, dedication, and motivation are not based on pay. No matter how high the salary, if you treat employees poorly they won’t care — about their jobs or your business.

Here are eight reasons employees don’t care:

1.No freedom. Best practices are definitely important, but not every task deserves a best practice or micro-managed approach. Autonomy breeds engagement and satisfaction. Autonomy also breeds innovation. Even manufacturing and heavily process-oriented positions have room for different approaches or paths. Decide which process battles are worth fighting; otherwise, let employees have some amount of freedom to work they way they work best.

2.No targets. Goals are fun. (I’ve never met anyone who wasn’t at least a little bit competitive.) Targets create a sense of purpose and add meaning to even the most repetitive tasks. Without a goal to shoot for, work is just work.

3.No sense of mission. We all like to feel a part of something bigger. Striving to be worthy of words like “best” or “largest” or “fastest” or “highest quality” provides a sense of purpose. Let employees know what you want the business to achieve; how can they care about your dreams if they don’t know your dreams?

4.No clear expectations. While every job should include decision-making latitude, every job also has basic expectations regarding the way certain situations should be handled. Criticize an employee for providing a refund today even though last week refunds were standard procedure and you’ve lost the employee. (How can I do a good job when I don’t know what doing a good job means?) When standards change, always communicate those changes first — then stick with them. And when you don’t, explain why this particular situation is different.

5.No input. Everyone wants to be smart. How do I show I’m smart? By offering suggestions and ideas. (Otherwise no matter how hard I work I just feel like a robot.) Deny me the opportunity to make suggestions, or shoot my suggestions down without consideration, and I’m just a robot — and robots don’t care. Make it easy for employees to present ideas and when an idea doesn’t have merit take the time to explain why. You can’t implement every idea, but you can make employees feel good every time they make a suggestion.

6.No connection. The company provides the paycheck, but employees work for people. A kind word, a short discussion about family, a brief check-in to see if they need anything… person-to-person moments are much more important than meetings or formal evaluations. Employees want to be seen as people, not numbers. Numbers don’t care. People care — especially when you care about them first.

7.No consistency. Most employees can deal with a boss who is demanding and quick to criticize… as long as she treats every employee the same way. (Think of it as the Vince Lombardi effect.) While it’s okay — in fact necessary — to treat employees differently, all employees must be treated fairly. Similar achievements should result in similar praise and rewards. Similar offenses should result in similar disciplinary actions. The key to maintaining consistency is to communicate; the more employees understand why a decision was made, the less likely they are to assume favoritism or unfair treatment.

8.No future. Every job should have the potential to lead to something better, either within or outside the company. I worked my way through college at a manufacturing plant. I had no future with the company because everyone understood I would only stay until I graduated. One day my boss said, “Hey, let me show you how we set up the job scheduling board.” I looked at him oddly; why show me instead of someone else? In response he said, “Some day, somewhere, you’ll be in charge of production. Might as well start learning now.” Take the time to develop employees for jobs they hope to fill — even if those positions are outside your company. They will care about your business because they know you care about them.