"The Health Insurane Reform List" - Headlines to Keep You Informed

This is the question being raised across the country and many states are threatening to sue over the health care reform bill's mandated health insurance requirement.

According to The Seattle Times writer Bruce Ramsey, "The individual mandate to buy health insurance is a key part of the Democrats' health-care plan. Their package, if they can pass it now, doesn't work without the mandate. But is it constitutional?" He expands more in his article about why it may not be constitutional and that the Supreme Court could go either way on the decision.

Health Insurance Reform to Continue into the New Year

Posted December 30, 2009

The Senate passed their version of the health care reform bill. “Our challenge, then, is to finish the job,” Obama said about the rest of the work that needs to be done to get a final bill on his desk.

That final bill will need to be a merging of the passed house bill and senate bill. If the merge is successful then the bill will just need to be signed by President Obama to become law. That won't happen though until after the new year when Congress is back in session.

Although there are still specifics that the Democrats are trying to agree on to merge both bills, one thing that is probably certain to come about if the merge is successful is the end of insurance companies dropping coverage because of pre-existing conditions or acquiring a disease or other condition. Also, there will probably be no public option and insurance will be mandatory.

Obama Waits to Take His Hawaiian Vacation to Help with Health Care Reform

Posted December 22, 2009

Obama recently announced he will delay his planned family vacation to support the health care overhaul bill currently in the Senate. At this point all Obama can do is provide encouragement since the Republicans have vowed to do everything they can to slow down and hopefully stop the passage of the bill. Republicans, which only have 40 seats in the Senate, have been able to so far delay the passage and hope to continue their progress.

Senate Wants No Co-Pays on Mammograms

Posted December 4, 2009

The health insurance reform debate is in full stride and the Senate is adding amendments into the health insurance reform bill. One of these is an amendment to restrict insurance companies from requesting a co-pay for women's preventative care services which would include mammograms.

This may be somewhat in response to the negative reaction from the public on the recent announcement from a government task force recommending a raise in the age on when a women should get her first mammogram. This amendment does not restrict deductibles that may apply to the procedure and does not remove the chance that insurance companies may change their coverage for mammograms to fall in line with the new government task force recommendations, which insurance companies have admitted they do follow guidelines from sources such as the government task force mentioned above to administer their coverages.

Selling Insurance Across State Lines

Posted November 13, 2009

It is a proposal that is still trying to make it into the current healthcare insurance reform. Interstate insurance or selling insurance across state lines, has been proposed in Congress since 2005 and is still for many a strong selling point for a change in how and where Americans should be able to purchase their health insurance coverage. Proponents say it will increase competition and opponents say it will do the opposite and raise costs along with lowering the quality of health insurance policies.

Getting a Little Suspicious of AARP and Their Strong Support for Health Insurance Reform?

Posted October 27, 2009

Membership organizations have been helpful to many in finding health care benefits. AARP is a household name for senior citizens. This trust seniors have for AARP is based on the assumption that they are advocating for seniors and not swimming in profits like many think that the health insurance companies are. But is that image true or just advertising?

The truth may be surprising to many senior citizens. According to www.washingtonpost.com, "The group and its subsidiaries collected more than $650 million in royalties and other fees last year from the sale of insurance policies, credit cards and other products that carry the AARP name, accounting for the majority of its $1.14 billion in revenue, according to federal tax records. It does not directly sell insurance policies but lends its name to plans in exchange for a tax-exempt cut of the premiums.

The group's dual role as an insurance reformer and a broker has come under increasing scrutiny in recent weeks from congressional Republicans, who accuse it of having a conflict of interest in taking sides in the fierce debate over health insurance. Three House Republicans sent a letter to AARP on Monday complaining that the group was putting its "political self-interests" ahead of seniors.

Republicans also question the high salaries and other perks given to some top AARP executives, who would not be subject to limits on insurance executives' pay included in the Senate Finance Committee's health reform package. Former AARP chief executive William Novelli received more than $1 million in compensation last year."

What Does that Mean? Understanding Health Insurance Terms

When searching for a health insurance plan or after one has already signed up, the plan terms, or descriptions of provisions and coverages can be hard to understand. When one is reviewing the terms they often confusingly say, “What does that mean?”

Help is here! Below is a list of common health insurance coverage terms to help everyone understand more about what their health insurance plan has to offer.

You may also be interested in the Health Insurance Reform Definitions

Deductible

The deductible refers to the amount of money that the insured would need to pay before any benefits from the health insurance policy can be used. This is usually a yearly amount so when the policy starts again, usually after a year, the deductible would be in effect again. Some services, like doctor visits, may be available without meeting the deductible first. Usually there are separate individual deductible amounts and total family deductible amounts.

Co-insurance

This is usually a percentage amount that is the insured's responsibility. A common co-insurance split is 80/20. This means that the insurance company will pay 80% of the procedure and the insured is required to pay the other 20%.

Co-payments

The co-payment is a fixed amount that the insured is required to pay at the time of service. It is usually required for basic doctor visits and when purchasing prescription medications.

Out-of-Pocket

This is the cost one would pay out of their own pocket. An out of pocket expense can refer to how much the co-payment, coinsurance, or deductible is. Also, when the term annual out-of-pocket maximum is used, that is referring to how much the insured would have to pay for the whole year out of their pocket, excluding premiums.

Lifetime Maximum

This is the most amount of money the health insurance policy will pay for the entire life. Pay attention to individual lifetime maximums and family lifetime maximums as they can be different.

Exclusions

The exclusions are the things that the insurance policy will not cover.

Pre-existing Conditions

This is something someone had before obtaining the insurance policy. Some plans will cover pre-existing conditions while others may completely exclude them and, in addition, some health insurance plans will cover pre-existing conditions after a certain time period.

Waiting Period

This is the time one would have to wait until certain health insurance coverages are available.

Coordination of Benefits

If the insured has available two or more sources that would cover payment for certain conditions, such being under a spouse's insurance plan along with their own, the insurance company would not pay double benefits. In this case the health insurance company would coordinate benefits to make sure each plan pays a portion of the service.

Grace Period

This is the amount of time one has to pay their health insurance premium after the original due date and before insurance coverage would be canceled

Health Insurance Reform Definitions

The health care reform terms are piling up in the news and on talk radio. You want to understand what lawmakers now want to call "health insurance reform," but it gets a little confusing.

If you are feeling like you just need a quick primer on some of the health care insurance reform definitions then take a look below at some of the most common health care reform terms:

Public Option

Public option is the term being used for a proposed government choice for health care insurance. This is part of a larger bill proposed by President Obama in the first year of his presidency to overhaul the health care system with health care reform and insurance reform.

Fee for Service

Fee for service is the term for how doctors get paid. For each service the doctor performs they get paid a fee. The fee for service health care model has been criticized by health care reform advocates.

Pre-existing Conditions

Having a pre-existing condition when shopping for health insurance can a difficult task. Understanding the definition of a pre-existing condition can be a good first step in obtaining a good health insurance policy.

Mandated Health Insurance

Mandated health insurance is when one is mandated, or required to purchase health insurance. This is the term most often used in the new health insurance reform legislation by the Obama administration.

Insurance Exchange

A health insurance exchange is the proposed way under the Obama administration to help with health insurance competition and health insurance reform. This new program will be a key component in providing health insurance to millions of uninsured Americans.

Government Affordability Credits

Government affordability credits are being used in the health insurance reform bill to help American citizens afford health care coverage in the health insurance exchange. Since part of the health insurance reform bill mandates insurance, these affordability credits are there to help individuals and households afford the mandated insurance requirement.

Interstate Insurance

Interstate insurance or selling insurance across state lines, has been proposed in Congress since 2005 and is still for many a strong selling point for a change in how and where Americans should be able to purchase their health insurance coverage.

Life Insurance for the Stay-at-Home Spouse

For various reasons there has been a shift in the way families determine their income needs. After a few decades of mostly two income households, there has been a trend in America back to the one income household.

Today's One Income Households are Different

These one income households are different than the "Leave it to Beaver" days... we now sometimes see fathers staying at home and the stay-at-home parent has chose to add many more responsibilities than was typical in the past one income households. Stay-at-home parents are now managing bills, being taxi drivers, and sometimes even are the main educator of their children such as in home schooling families. All of these tasks are in addition to the traditional tasks such as meal preparation, laundry services and house keeper.

All Families With Children Should Have Life Insurance

Many families now know that life insurance is important for both parents in a one income household. It is not hard to see how much of a financial loss the stay-at-home parent would cause if they died. For example, add up how much it would cost for a family to provide daycare, housecleaning services, taxi services, meal preparation services and after school care... and this is just a few of the many tasks a stay-at-home parent performs.

Who Will Take Care of the Emotional Needs of the Child?

Unfortunately though, most families just minimally insure the stay-at-home spouse. The family feels the minimal insurance they have would be sufficient to take care of the above mentioned tasks, at least until the youngest child was out of school. But what about the child's emotional loss from their deceased stay-at-home parent? Can hired help really take care of those needs? What if the working parent realized they needed to be the stay-at-home parent for a while... would there be enough life insurance to cover the working parent's lost wages?

The First Few Years After a Loss is Critical

Sadly, most families don't carry enough life insurance to supply this need. Obviously loosing a parent is very tragic and can have complicated and lasting effects on a child. Usually the first few years are very tough. In most families the best situation would be for the surviving parent to be able to devote themselves full-time to their children for the first few tough years. This can be possible with the proper life insurance coverage.

I have read tragic stories of families in this exact situation... the stay at home parent dies and although the family had life insurance, financial they were fine as long as the surviving parent still worked. But the children were an emotional mess and tragic consequences followed such as bad social choices. The working surviving spouse wanted desperately to be with their children full-time to help them better through their loss but could not survive financially since they did not purchase enough life insurance.

Adding Extra Life Insurance to Cover the Surviving Spouse's Income is Achievable

Life insurance, especially term life insurance, is relatively inexpensive and if a family already has a policy on the stay-at-home parent, the family probably would not experience a financial hardship by adding to the existing life insurance amount to cover a few years of time off for the surviving parent to be with the surviving children.

All families with children should have life insurance on both parents, regardless of weather they work or not. In addition, those same families should seriously consider adding on to their life insurance policies to take into account the potential loss of income if the surviving spouse would need or choose to devote themselves full-time to their children during the fragile grieving process.

The Top Ten Insurance Myths You Need to Know!

Myth #1: Hey, You're Paying the Premiums... Insurance Should be Bought and Used for Every Accident and Disaster.

Insurance is designed to protect one from catastrophic disasters. An insurance rule of thumb: If you can pay for the loss or damage without a financial hardship then pay it, otherwise expect your insurance premium to eventually show an increase. Also, buying every type of insurance just isn't necessary. Sometimes the risk is worth taking rather than paying a premium. Learn more at Don't Buy Insurance You Don't Need

Myth #2: If I am Alive, I Must Need Life Insurance!

Life insurance is designed to take care of one's dependants after the caregiver's death. If you have no dependants, then you probably don't need life insurance. This includes children and retired persons... usually they don't have people that depend on their income so life insurance for these groups can, in rare instances, be beneficial but is usually unnecessary.

Myth #3: I'm the Breadwinner in the Home, So Only I Need Life Insurance.

Have you seen the cost of childcare lately? Add that along with housekeeping, food preparation, home accountant, and school transportation. From that list alone one can see how much a spouse really contributes to the household budget. It is estimated a non-working spouse contributes at least, but usually more, the equivalent of a full time job. For this reason it is important to buy life insurance for everyone in the household if the absence of their income would cause a financial hardship.

Myth #4: Whole and Universal Life are the Best Life Insurance Choices Since I Can Get My Money Back.

Term life insurance is probably the best choice for most. Term life is set for a specific term, like 10-30 years, with a much lower premium than whole and universal life. Your best bet? Buy term life and invest the premium difference in a retirement account. Lean more about Term, Universal, and Whole Life at Life Insurance Policy Basics.

Myth #5: Flood Insurance is Only for People Who Live in a High Risk Area.

Everyone who lives in a National Flood Insurance Program area is eligible and can buy flood insurance. These areas are not always prone to floods so even if you think your area is low risk you may be eligible. Check with your insurance agent to learn more or find additional information at Why didn't my policy pay for damage caused by a flood?

Could Your Life Insurance Company Fail?

Life insurance is supposed to be the back up plan for our losses. But, have you ever thought about what would happen if your life insurance company went bankrupt? Unfortunately most people don't realize life insurance companies could fail just like the bank failures we have been through.

The Risk is Low

Thankfully, so far, the rate of failed insurance companies is very low. But of course that does not mean the risk is not there. Understanding what would happen if your life insurance company did fail and how to best avoid being a victim of a life insurance company failure is the best ways to protect your life insurance investment.

What Happens When a Life Insurance Company Fails?

First, let us start with what happens if and when a life insurance company fails financially. Each state regulates the insurance companies that do business in their state via that state's insurance commissioner. If a life insurance company comes to the state and says it is failing, first the state will try and help get the company back on its feet. If that does not work, then the state will take the company over. That process involves liquidation of the company's assets.

Guarantee Associations

What's important for you to know as a policy holder is that each state has a guarantee association that protects a policy holder if an insurance company fails. In most states, the guarantee association will cover up to $100 thousand for life insurance policies. So, pretty much you are covered up to $100 thousand, but what about the rest of your policy?

Find a Reliable Life Insurance Company

That brings us to the best way to avoid dealing with a life insurance company failure... finding a reliable life insurance company. And, the best way to find a reliable life insurance company is to be aware of your life insurance company's financial rating. By obtaining a policy through a strong financial company you will have the best assurance of a strong company now and in the future.

Should You Buy Multiple Life Insurance Policies?

If you have a reliable life insurance company then chances are you won't have to worry about anything. There are still some life insurance policyholders that don't want to take even the slimiest chance and have decided to buy multiple life insurance polices up to the $100 thousand state guaranteed amount. This of course would take some extra time and effort and would probably cost more in premiums. This is not the usual route for most people so, of course, before changing anything in your life insurance portfolio, always consult with a trusted life insurance agent or advisor so they can help you make the right decision for your particular situation.

LIFE INSURANCE

Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium. In the United States, the predominant form simply specifies a lump sum to be paid on the insured's demise.

As with most insurance policies, life insurance is a contract between the insurer and the policy owner whereby a benefit is paid to the designated beneficiaries if an insured event occurs which is covered by the policy.

The value for the policyholder is derived, not from an actual claim event, rather it is the value derived from the 'peace of mind' experienced by the policyholder, due to the negating of adverse financial consequences caused by the death of the Life Assured.

To be a life policy the insured event must be based upon the lives of the people named in the policy.

Insured events that may be covered include:

Serious illness

Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; for example claims relating to suicide, fraud, war, riot and civil commotion.

Life-based contracts tend to fall into two major categories:

Protection policies - designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance.

Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US anyway) are whole life, universal life and variable life policies.