Posts Tagged health insurance policy
What if I leave my job?
The Consolidated Omnibus Budget Reconciliation Act
(COBRA), a law created in 1986, gives workers (and members of their family) who lose their health
insurance benefits the right continue their group health insurance for a limited period of time under
circumstances such as voluntary or involuntary job loss, reduction in hours, transition between jobs, divorce, adoption and death.
Generally, the employee pays up to 102% of the premium cost for the same policy; this is still usually less expensive than buying an individual insurance policy.
There are three basic aspects for qualifying for COBRA: the qualifying event, the insurance plan coverage and the qualified person.
Each aspect is taken into consideration when applying for COBRA and you must elect to either apply for COBRA or waive your rights to COBRA within 14 days after a qualifying event.
You must also have been in the group insurance plan during your employment to be eligible. Although there are exceptions, generally you may continue to pay your own premiums to keep COBRA coverage intact for up to 18 months.
Companies who have fewer than 20 employees, State or Federal employers or employee organizations may not offer COBRA coverage.
Check with your health insurance administrator to see if you may qualify. You may also have this information readily available in your group health insurance policy or in your company handbook.
Although it may be expensive, the cost of being able to keep your group insurance coverage rate may be well worth it.
Tags: COBRA, coverage, health insurance policy, individual insurance, individual insurance policy, insurance planHealth 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.
Tags: health insurance policy, health saving account, insurance, insurance policyGetting 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.
Tags: health, health insurance, health insurance policy, policy, policy coverage