TIPS FOR UNDERSTANDING AMERICAN DOMESTIC HEALTH INSURANCE


BUYING A HEALTH INSURANCE PLAN IS JUST LIKE BUYING A CAR

Buying a health insurance plan is just like buying a car. All cars have four tires and an engine, and all health insurance plans have deductibles and some have coinsurance. What you have to ask yourself is how big or small of a deductible you want to purchase. The smaller the deductible the higher the premium. Another way to say that is that the higher the deductible, the lower the premium. People who want to lower their health insurance premiums should consider increasing their deductibles.

Every type of health insurance, actually every type of insurance, is for catastrophic situations. With this understanding, you will be able to find the best insurance “vehicle” for you.

A great definition of insurance is “a system to protect persons, groups, or businesses against the risks of financial loss by transferring the risks to a large group who agrees to share the financial losses in exchange for premium payments.”

Plans without copays have a variety of names to represent the same kind of plans: “HSA plans,” “no copay plans,” “high deductible plans,” and “catastrophic plans.” If you want leather seats, built-in GPS, and an Ipod holder in your car, you will be paying a higher price for the car. The same goes with adding more benefits to your health insurance plan. You may want to add copays that will pay for doctor visits, prescriptions, urgent-care visits, and maternity coverage. Please realize adding all these extra benefits will mean a higher premium. If you do add copays to your insurance plan, the deductible and coinsurance will still go toward surgeries and procedures done in a hospital.

 

GOING BACK TO BASICS TO UNDERSTAND WHAT “INSURANCE” MEANS

I had the privilege of taking a week long workshop on “sharpening your interpersonal skills” like listening, drawing people out, living in community, building personal trust, and many other areas. There were lots of thoughts and ideas that were elementary but it was wonderful to look at it again, especially at the young age of 42. There were also new ideas and thoughts I learned that I never heard, such as “people are the destination.”

Now what does understanding health insurance have to do with what I learned this past week? Plenty for sure but that would take a few more pages. What we need to do at times is go back to basics and understand what “insurance” really means. I like the definition Lloyd’s of London has created:

“A contract whereby an insurer promises to pay the insured a sum of money or some other benefit upon the happening of one or more uncertain events in exchange for the payment of a premium. There must be uncertainty as to whether the relevant event(s) may happen at all or, if they will occur (eg death) as to their timing.”

You may be surprised to know our office , www.gninsurance.com, receives at least one phone call a week and at least two emails per week asking to purchase health insurance since they realized they currently have a medical issue where they need to see a medical facility as of now and some as of yesterday! They didn’t plan for those “uncertain events” that Lloyds mentions, and so they were not prepared financially when they did happen.

There are times I wish I could predict the future but if I could I sure would not be writing this article and instead would be scuba diving the wreck at Tulamben , north coast of Bali, with laptop in hand emailing you my paypal account making you and I very happy indeed. But alas, we will have to just open up those fortune cookies at our favorite Asian restaurant for our “possible” future fortunes.

Another thing to consider as we go back to basics on understanding insurance is that we all help pay for each other’s care if and when that may happen in the future. So yes, we can call each of us the good Samaritan. I gather many have not thought about this but purchasing insurance on yourself is actually making others who have your type of insurance very happy. We can throw the six degrees of separation out the window because your insurance premium is actually helping the next person that is grouped in your policy portfolio. Wow, talk about being able to “touch someone” and help them smile. So when you are paying that monthly premium, which at times I do with a heavy sigh, realize that part of your hard earned income is helping pay for someone’s unfortunate medical concerns. Now if that doesn’t bring a smile to your face just grab another fortune cookie!

Well, I feel we have gone back to basics enough for today talking about insurance. If you want more, please feel free to email me. But in case you do not get a quick reply it is because my fortune cookie told me today that in 2 days I will be diving Tulamben. So, adios friends, I am heading to Phoenix Sky Harbor airport for some fun diving in Bali!

SHORT-TERM HEALTH COVERAGE IN THE USA

You may not have international health insurance that covers you in the USA, and so you need coverage when visiting in the USA on a short furlough. Or you may be passing through the USA on the way to another country. Good Neighbor has excellent short-term plans that will cover you in all U.S. states. Or you may be preparing to leave the USA, and need temporary insurance before your departure.

You may have finished your overseas work, and are coming back to the USA for good. You don’t yet have a job that provides insurance so you need temporary coverage. We can do that too. We have a very cost-effective plan offered by an “A+ Superior” Rated Carrier with 9 billion dollars in assets. There is no “decline question” on the application. With this plan you will pay only $50 at an Urgent Care Facility. No Social Security number is required. Any legal resident of the USA can take out this policy. The plan is available in all states except the following: CT, MD, MA, MN, MT, NJ, NY, VT & WA.