Some health insurance policies do not provide for
prescription coverage and a separate policy must be
purchased for prescription medications.
This is an area where it pays to do some homework and
research and find the best policy for you.
Prescription coverage insurance is not a necessity;
like health insurance coverage, it is a calculated
risk, although the risk is not as high.
Usually you can buy prescription insurance at any
time, so if the doctor determines that you need an
expensive maintenance drug, you may opt in at that
time.
It is important to know that if you presently have
prescription insurance you can usually only change it
at a specific time of the year, although you can add
new prescriptions, you can’t change plans.
The person who seldom takes prescription medications
probably does not need prescription insurance;
however, a person who takes maintenance drugs for high
blood pressure, diabetes, depression, heart disease or
immune disorders most likely needs insurance against
the high costs of drugs.
Prescription insurance policies usually have "tiers",
which usually means that a generic drug is at a low or
no co-pay, a tier 2 level may be the brand name
genuine, and a tier 3 may be a brand new expensive
drug that the co-pay could be a set high-percentage of
the cost.
In choosing prescription insurance, you should first
list the prescriptions that you take and the retail
amount of them. If you chose not to purchase
insurance, this would be your monthly cost.
Find out from the provider what the monthly premium
for you would be, then what the prescription co-pay
amount would be and add these two figures together.
Which is the less expensive alternative?
9/28/2009
Health Savings Accounts
If you are considering changing your health insurance
policy, you should be aware of the alternative of a
Health Savings Account (HCA).
Health Savings Accounts started to become available
(and legal) in 2004, allowing people with
high-deductible insurance policies to set aside
tax-free money to fund medical expenses up to the
maximum deductible amount.
If you don’t have to use the funds, it rolls over
every year. Once you reach age 65, you no longer are
required to use it for medical expenses, although you
certainly can; you can withdraw funds under the same
conditions as a regular IRA.
Although you will be penalized if you use the funds
for non-medical expenses prior to age 65, you can use
the money for vision care, alternative medicine or
treatment and dental care.
For 2008, an individual may fund up to $2,900 tax
free. The maximum deductible would be $1100 and the
maximum out-of-pocket cost would be $5,600.
For a family, the maximum tax-free contribution is
$5,800 with the maximum deductible of $2,200 and the
maximum out-of-pocket cost would be $11,200.
Health Savings Accounts are certainly a viable way to
shelter income while providing catastrophic insurance
coverage in light of the high cost of low-deductible
health insurance plans.
For healthy people, it deserves some research. Consult
with your insurance agent for all of the details
involving this approach to managing your insurance
needs.
policy, you should be aware of the alternative of a
Health Savings Account (HCA).
Health Savings Accounts started to become available
(and legal) in 2004, allowing people with
high-deductible insurance policies to set aside
tax-free money to fund medical expenses up to the
maximum deductible amount.
If you don’t have to use the funds, it rolls over
every year. Once you reach age 65, you no longer are
required to use it for medical expenses, although you
certainly can; you can withdraw funds under the same
conditions as a regular IRA.
Although you will be penalized if you use the funds
for non-medical expenses prior to age 65, you can use
the money for vision care, alternative medicine or
treatment and dental care.
For 2008, an individual may fund up to $2,900 tax
free. The maximum deductible would be $1100 and the
maximum out-of-pocket cost would be $5,600.
For a family, the maximum tax-free contribution is
$5,800 with the maximum deductible of $2,200 and the
maximum out-of-pocket cost would be $11,200.
Health Savings Accounts are certainly a viable way to
shelter income while providing catastrophic insurance
coverage in light of the high cost of low-deductible
health insurance plans.
For healthy people, it deserves some research. Consult
with your insurance agent for all of the details
involving this approach to managing your insurance
needs.
Getting the Most Benefit From Your Policy
The key to getting the most benefit from your health
insurance policy is knowing your policy coverage.
Many people don’t actually read the policy for the
policy plan book; they may not be aware that the
policy may pay 100% of certain procedures, like annual
physicals, mammograms, flu shots or certain labs
tests.
The policy plan book will outline for you what
procedures are not subject to the deductible or co-pay
(your out-of-pocket expense).
Some insurance companies have shifted their emphasis
from health insurance to health improvement and
maintenance and will pay for the cost of gym
membership, nutritional counseling or plans to stop
smoking.
If you were trying to lose weight and knew that you
could get these services at no cost, wouldn’t you take
advantage of them?
If you wanted to quit smoking, wouldn’t it be
beneficial to know that you could get the patch for
free?
It is very wise to know what services are available to
you through your insurance company, and you will only
know if you take the time to read through your policy.
Health insurance is an expensive item; take advantage
of every aspect of it that you can, not only for
yourself but for the members of your family.
By taking full advantage of the free benefits of your
health insurance policy, you will be healthier and
possibly require fewer visits to your doctor.
insurance policy is knowing your policy coverage.
Many people don’t actually read the policy for the
policy plan book; they may not be aware that the
policy may pay 100% of certain procedures, like annual
physicals, mammograms, flu shots or certain labs
tests.
The policy plan book will outline for you what
procedures are not subject to the deductible or co-pay
(your out-of-pocket expense).
Some insurance companies have shifted their emphasis
from health insurance to health improvement and
maintenance and will pay for the cost of gym
membership, nutritional counseling or plans to stop
smoking.
If you were trying to lose weight and knew that you
could get these services at no cost, wouldn’t you take
advantage of them?
If you wanted to quit smoking, wouldn’t it be
beneficial to know that you could get the patch for
free?
It is very wise to know what services are available to
you through your insurance company, and you will only
know if you take the time to read through your policy.
Health insurance is an expensive item; take advantage
of every aspect of it that you can, not only for
yourself but for the members of your family.
By taking full advantage of the free benefits of your
health insurance policy, you will be healthier and
possibly require fewer visits to your doctor.
For College Students
The tuition arrangements are set up; the dorm room is
assigned and your son or daughter is headed off to
college in the fall. In all of the confusion of the
paperwork, deadlines and financial arrangements did
you remember to check on their health insurance?
Many, but not all, insurance companies provide for
health insurance for college students under a family
policy; do you know for sure that yours does?
With some insurance companies, coverage depends on
whether or not the student is a full time student.
Review your policy or ask your insurance
administrator; if you have an HMO plan, will your
student be covered if they go to the student
healthcare facility away from home?
Check the age limit as well; you may find that once
your son or daughter reaches a certain age they are
dropped from the policy no matter what.
Ask your insurance company to provide an extra
insurance card for your son or daughter to carry with
them; if there is an additional card for prescription
medications; make sure they have that too.
This preventative step will help eliminate confusion
when they suddenly have to see a doctor.
There are student health care plans that are available
through most colleges that are a reasonably priced
Isn’t college confusing enough without having to worry
about whether your child is covered should he or she
need to seek medical attention? Take the time to look
into health insurance before they head off to college
in the fall.
assigned and your son or daughter is headed off to
college in the fall. In all of the confusion of the
paperwork, deadlines and financial arrangements did
you remember to check on their health insurance?
Many, but not all, insurance companies provide for
health insurance for college students under a family
policy; do you know for sure that yours does?
With some insurance companies, coverage depends on
whether or not the student is a full time student.
Review your policy or ask your insurance
administrator; if you have an HMO plan, will your
student be covered if they go to the student
healthcare facility away from home?
Check the age limit as well; you may find that once
your son or daughter reaches a certain age they are
dropped from the policy no matter what.
Ask your insurance company to provide an extra
insurance card for your son or daughter to carry with
them; if there is an additional card for prescription
medications; make sure they have that too.
This preventative step will help eliminate confusion
when they suddenly have to see a doctor.
There are student health care plans that are available
through most colleges that are a reasonably priced
alternative if your policy excludes your child.
Isn’t college confusing enough without having to worry
about whether your child is covered should he or she
need to seek medical attention? Take the time to look
into health insurance before they head off to college
in the fall.
Subscribe to:
Posts (Atom)
