Posts Tagged ‘Health Policy’

Health Insurance – The Role Of The Broker

April 30th, 2010



For many people, seeking health insurance is a daunting prospect with a number of companies to choose from each offering a range of policies which can be both complex and difficult to decipher. For this reason it is often wise to employ the services of a broker to match your needs to the right health insurance company and policy.

Having chosen a broker it is a simple matter of giving him your medical details, including details of such things as any pre-existing conditions from which you are suffering and medications you are currently taking, and a list of the things that would wish to see covered in your policy. The broker then looks at a variety of companies and different policies and comes back to you with his recommendations. Once you have had a chance to study these, and to ask any questions that you might have, the broker will then work with you to get your health insurance contract signed and your policy issued.

It is important to understand that a health insurance broker works independently and is not employed by any particular health insurance company. His job is to study the health insurance market and to acquaint himself with the full range of cover available, as well as with how each insurance company operates including such things as its reputation, the frequency with which it increases premiums and the manner in which it handles claims.

Although the broker is independent it is also important to understand that he makes his money by way of a commission each time a contract is completed and that his commission will vary from one insurance company to the next. You may well feel therefore that it is in his interest to recommend a policy to you which earns him the highest commission. If this is something that concerns you then you should discuss this with the broker. If he is a sound and reputable broker he will have no difficulty in discussing this openly with you.

Despite the fact that the broker will be earning commission from the sale of your policy, which effectively comes from your premiums, it does not necessarily follow that a policy purchased through a broker will be more expensive and you will usually find that the same policy purchased directly from the company will cost you exactly the same amount as money as you will end up paying in buying through a broker.

In addition, a broker will often be able to find you a deal which you are unlikely to uncover on your own simply as a result of his knowledge of the marketplace.

Surprisingly, perhaps because the rules on health insurance are constantly changing, health insurance brokers are fairly thin on the ground. In addition, most states require health insurance brokers to be licensed and the licensing requirements vary from state to state.

If you feel confident about seeking out your own health insurance policy and are happy that you can understand the technicalities of a health insurance contract and the details of the small print then all well and good. But, if this is not the case, then a health insurance broker could turn out to be your best friend.

By: Donald Saunders

Health Insurance 101

April 25th, 2010



Health insurance is a kind of insurance wherein the insurance company pays the medical costs of the insured individual if the individual in question falls ill due to covered causes, or due to accidents. The insurer may be a private organization or a government agency. The major purpose of health insurance is to cover medical expenses and any lost income while the individual is not well and unable to function normally.

There are different types of health insurance policies. The two most common ones are major medical and disability insurance. A major medical health insurance policy provides benefits for sickness or injury, irrespective of whether the care is provided at a doctor’s office, clinic or hospital. The types of sickness and injury covered are typically broad, although there are always limitations that you may want to discuss with your agent prior to purchasing the coverage. Major medical policies normally have an annual deductible and a lifetime maximum amount of benefits that will be paid.

Even if you are covered by a group insurance at work, you might consider taking an individual policy if you may change jobs soon, or if certain benefits that are not provided in the group policy.

A deductible is an annual amount that you will have to pay per insured person, before the insurance company begins to pay on your bills. There is an upper limit for the maximum amount of deductibles you will have to pay in a given year.

In a health policy, coinsurance refers to the percentage of the medical bills that the insured individual will have to pay after the deductible is met. Usually the health policy would have a provision called a ’stop-loss’ – this is the maximum amount you will have to pay for covered medical bills.

By: Chris Tolamalu

Coverage for College-Bound Kids: Finding Health Insurance for Your Student

February 5th, 2010



You’ve done all you could to prepare your child for college. You’ve set rules, stated guidelines and communicated your expectations. You’ve done your best; you’ve covered all the bases. Or have you?

Identifying Misconceptions

When it comes to sending their child off to college, many parents make the all too common mistake of assuming that their child will be covered under their health policy—and that their coverages and benefits will be the same while they’re away at college.

Unfortunately, that’s not always the case. Many insurers still cover dependents until age 23, but many are terminating dependent coverage sooner—some as young as age 18. Furthermore, college students that attend school out-of-state may not receive all their benefits or may be charged additional fees for seeing physicians out of the insurer’s network.

So what’s a parent to do?

The Good News

Fortunately, if a student isn’t fully covered on a parent’s health insurance plan, there are affordable alternatives.

Generally speaking, college students and their parents tend to seek health plans from one of three places: the student’s college, a private health insurer or other student organizations.

The majority of colleges and universities now offer student health insurance for their attendants, which often consist of two or three policy options. While traditionally less expensive, the costs and coverages of university-sponsored health plans tend to be more fixed, which may not meet needs of students with pre-existing conditions.

Surprisingly, private health insurance for students is fairly inexpensive. Private health insurance is an especially attractive option for parents and students because it typically covers a wider range of benefits. Your chances of snagging discounts are also greater if you buy a student policy from a private insurer.

Other student health plans are available through student-help organizations like the American College Student Association (ACSA). Organizations like ACSA specialize in short-term health insurance and study abroad coverage, which is especially appealing to students wishing to travel.

Tips to Remember

Making sure the student in your life has adequate health insurance is important. As you ask questions and shop for health plans, consider the following tips:

Know the student’s needs. Does the student have allergies? A need for travel vaccines? Knowing what your student needs ahead of time will help narrow your policy options.

Know how long the student needs the coverage. Many insurers allow you to purchase policies that last anywhere from three months to a year—determine how long the student will need the policy to avoid paying for extra coverage.

Compare multiple policies. More health insurance options mean more options to save. Don’t forget to compare policy benefits, deductibles and limitations while searching for cheap health insurance.

Don’t skimp on major medical. Before buying a student health policy, make sure it covers major medical expenses. The cheapest policy in the world won’t save you money if it doesn’t cover major medical expenses!

Lessons Learned

Whether you’re a student yourself, or a parent seeking health insurance for a student, it’s important to understand that health insurance is an important part of staying healthy in college. Use the tips above to help you find the best—and the cheapest—student health insurance policy!

By: Megan Mahan