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Dear Everyone!
You know how the TV weather-person says that "the storm-door is open" when they expect storm after strom to roll in here from the Pacific Ocean?
Well the Blue Cross "storm-door" has been open for the past month. They are willing to take on more risk than we've seen in a long, long time. People who were turned down four months ago are now being accepted (perhaps with a rate-up... but accepted nonetheless.)
So if you know someone who is coming off COBRA or who wants to move to a better plan, now is the time to have them contact me.
My bet is that in 60 days the door will shut and won't re-open for a long time.
-Al
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How To Prevent High Healthcare Costs Later
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The cost of healthcare in retirement is not cheap and is starting to become overwhelming, if not impossible to cover. The average 65-year-old couple retiring today needs $225,000 set aside to pay for health-care costs in retirement (when including inflation.)
So, what can YOU do to make sure you will have adequate resources? Here are some ideas:
1. Create a retirement plan
It's vital that you create a plan that factors in current savings, income sources, lifestyle, expenses, geographic location and likely healthcare needs. One factor that can dramatically affect retiree healthcare costs is the date of retirement, especially for those who don't have retiree healthcare and those who retire before becoming eligible for Medicare.
Many people may need to work longer to get necessary health coverage. Indeed, healthcare costs are the big wild card for all of us and those costs are an even bigger factor for those who retire pre-Medicare, before age 65. Premiums for this group are high and they may try to go without at a time when they are at greater risk.
In other words, it should not come as a surprise that retirees or would-be retirees will need money in retirement to pay for doctor visits and the like.
2. Earmark savings for retiree healthcare costs as early as possible
While Medicare Part B and Part D premiums along with a good supplement policy will take care of a large portion of medical bills it does not, however, include over-the-counter medications, most dental services and long-term care.
Thus, would-be retirees should earmark a portion of their "healthcare" savings toward dental expenses in retirement since it's not uncommon for older Americans to rack up $9,000 of dental expenses in a year. Retirees also need to set aside money for eye and hearing examinations and prescription eyeglasses.
Just about everyone recommends that people enroll and save money in a health savings account (HSA) or other qualified account earmarked for healthcare. Unfortunately, HSAs are not the answer of choice just yet. In fact, HSAs have not really taken flight in corporate America for a variety of reasons, including high contribution amounts and high deductibles.
3. Spend money/time on a healthy lifestyle now
The best way to avoid future healthcare costs is to spend one's money and time wisely on healthcare today. For instance, hiring a personal trainer who can help develop an exercise and nutrition program that will improve the odds of spending less on health care later.
Most health plans will not support alternative medicine and yet in some cases that might be the better approach for an individual.
Americans must also become smart shoppers by considering generics when appropriate or becoming better informed about their medical conditions or diagnosis or by reducing emergency room visits or maximizing preventive services.
Don't get sick. This sounds obvious, but you can reduce the odds of contracting serious illnesses by 50% or more by doing the following: stop smoking if you smoke; exercise 45 minutes per day for four days per week; improve your diet to include lots of fruits and vegetables and significantly reduce meat (and fat) intake; and get your body mass index (BMI) to normal levels.
Americans are paying dearly for lifestyle habits, and these habits are robbing them of their ability to retire, and ultimately robbing them of their freedom.
4. Determine details of any employer-sponsored coverage
Fewer and fewer Americans will retire with an employer-sponsored healthcare coverage. But those who do have it should study the scope of their coverage. Know what your plan covers so there are no surprises later on. You don't want to have to say "If I knew that this procedure was not covered, I would have bought a supplement."
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A Few Words On HSAs
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HSAs
I want to reprint a speech by an unknown Pennsylvania state legislator State Rep. Bryan Cutler, because he sums up HSAs almost perfectly:
Health Savings Accounts, which both employers and individuals can contribute to, can be coupled with a high deductible insurance plan to provide a strong alternative to traditional insurance coverage.
In addition to contributing to HSAs, employers can also pay for a portion of the insurance. Often the total cost to employers using such plans will be equal to or less than that which they are currently paying for traditional health insurance.
Health Savings Accounts allow employees the freedom to choose how and when their HSA money is spent - improving their access to care - while still providing coverage for truly catastrophic and costly events.
Individuals who do not spend all of the money in their HSA can roll that money over for use in the event of a future health crisis.
In addition, HSAs are portable: Workers can keep their account even if they change jobs or lose their jobs.
That portability and continuity are valuable improvements over the existing system in which losing your job usually means losing your health-care coverage.
This model has worked successfully in other countries, and I believe our nation would be wise to learn from it.
My opinion is shaped by my personal experience.
Both of my parents were terminally ill with Lou Gehrig's disease, and our only insurance coverage came through my father's employer.
We constantly struggled with in-and-out-of-network issues, as well as which services would be covered. Because insurance would not cover all of the care for my mother, we were eventually forced to sell the family home to cover the monthly costs of care, which amounted to almost $6,000 per month.
It was personally very frustrating to me that my parents had paid thousands of dollars for insurance policies over the years only to be denied coverage when they really needed it.
I believe HSAs would have helped my family and many others faced with similar situations. They would allow people to build a pool of money to be used for needed health-care costs.
Additionally, HSAs are priced competitively when compared to current insurance plans, and may even be cheaper for some businesses.
HSAs also allow people to better manage their care by allowing them to shop for the best quality and lowest cost for services.
Finally, HSAs allow individuals to choose the types of care they wish to have. Individuals can choose home-health care or nursing-home care, prescription drugs or herbal medicine, traditional doctors or chiropractors - making this type of plan a better alternative for many families.
I realize that HSAs may not be the best solution for everyone, but they should be one more option to have at our disposal to cover increasing medical costs.
I believe that individuals, not the government, know what is best for themselves and their families.
Rep. Cutler, of Peach Bottom, PA, represents District 100 in the state House.
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One Payor? Another View
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It is no secret that I favor a single-payor, universal "federal" system for basic healthcare. But there is another view, and I think it should be presented, especially in light of this being a political year. So here are the thoughts of Denis Storey, editor of Benefits Selling magazine:
For the first time in something like 70 years, there's no sitting president or vice presidential candidate running for office. And public opinion toward both parties is low enough to wipe out any incumbent advantage there, as well.
A sagging economy helps, too. A little financial insecurity tends to drive interest in the polls.
Speaking of which, the latest nationwide polls - for what they're worth - indicate that seven out of 10 people were paying "quite a lot" of attention to this year's presidential race. That beats the 58 percent at this same stage of 2004's contest.
It's a race we should all be paying a little more attention to. And doing our part to shape. In addition to this historic, wide-open race, we're looking at an election that will be casting a brighter light on healthcare than we've seen in more than a decade. Even the Republican candidates are calling for change almost as loudly as "sky is falling" Democrats.
But that's not to say that stark differences don't remain. In short, the Dems want to expand coverage, no matter the cost. And the Republicans simply want to lower costs, arguing that greater efficiency and management can improve care while still saving money.
Either way, more government involvement - whether it's at the state or federal level -almost certainly looms on the horizon.
It's funny. Everyone likes to praise former Massachusetts Gov. Mitt Romney, for example, for the "free market" universal coverage he brought to that state in 2005, but let's not let a good story get in the way of the facts.
There's no question there's nothing quite like the Massachusetts model in the country. (The plan, as you all know, forces nearly every resident to buy health insurance.) And this plan stands to earn even more press as the campaign heats up, especially when penalties kick in come April for the companies and employees who have not yet signed up.
But, as it turns out, this feel-good role model for a national health care plan is costing a fortune. According to United Benefit Advisors' 2007 Health Plan Survey, Massachusetts, with its "revolutionary" model, boasted the highest total annual cost per employee in the nation, at $9,304. And these numbers come from an exhaustive survey of more than 16,400 health plans across the country. The national average total annual cost per employee, including both employer and employee contributions, hovered at $6,881.
Once again, an important story in the ongoing health care debate is lost in the rhetoric.
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Well, that's a wrap for this issue. I hope you've found some of the info above useful and interesting. If you have questions about life or health coverage, safe-money annuities, or employer group benefits just give me a call or send email.
Sincerely,
Alan N Canton
InsuranceSolutions123 Agency
InsuranceSolutions123.com
916-962-9296
CA License # 0F31110
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Al Canton, Owner
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I'm Al Canton, owner of the Insurance Solutions Agency.
Everyone promises the best service, etc. So I won't bore you with that message.
Bottom line, I know health insurance, work-supplements, medicare, life, and annuities.
Most importantly, I'm honest. I will not put you in a product just for the money. I've been here 25 years and I've built my business reputation on integrity and honor.
It's that simple.
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