Q) Rick, what's all this I'm hearing about HSA's? What is it?
A) HSA is the acronym for Health Savings Account. This concept is a part of the Medicare Modernization Act, known mostly as the new Part D of Medicare adding a prescription benefit.
A Health Savings Account works similar to an Individual Retirement Account (IRA) where $$ deposited into the account receive an above the line tax deduction. The money in the account earns interest tax free and is usable for Health Insurance expenses, or even health related expenses that might not be covered by the plan. Examples such as dental and vision. The money in this account is to be utilized to pay the deductible expenses of the plan. In order to qualify as an HSA plan, the minimum deductible allowed is $1000. No office visit copayments, or copayments for Rx is allowed. All medical expenses are out of pocket until the deductible is met, and at that time, the plan either pays 100% or 80% of expenses thereafter.
Tuesday, November 29, 2005
Sunday, November 27, 2005
More on the new Medicare Program
Q) How does Medicare Part D work?
A) Medicare Part D is the newest edition to Medicare. Part A covers hospitalization and Part B covers medical treatment. In order to be eligible, an individual must be age 65 or permanently disabled. Eligibility begins on the first day of the individual’s birth month when he or she becomes age 65. Whereas individuals can begin receiving Social Security benefits at age 62, such is not the case with Medicare.
There is no premium for Part A, however Part B does have a premium, as does the new Part D. For the first time under Part D, beneficiaries can pay directly to a private insurer instead of the government, and the benefits are administered in the private sector too.
The basic Medicare Part D works this way. All Rx costs up to a $250 deductible are paid by the insured. Then Part D pays 75% until $2250 has been paid out by the insurer (US Gov’t). After this, any Rx expenses between $2250 and $3600 are paid by beneficiaries. Once the $3600 ceiling is reached, Medicare then pays 95% of pharmacy expenses. Medicare recipients at the poverty level are excluded from the above, and receive far richer benefits.
Insurers participating in the Medicare Part D program must offer benefits equal to or better than the above, and so far most are. By the end of December 2005 I will be certified to write plans issued by Mutual of Omaha in several states. Notice I said certified. Normally we just become licensed by filling out paperwork and waiting for licensing approval by the insurer. In the case of the new Medicare program, we must be certified, code word for test. So far premiums with Mutual of Omaha run between $18.24 and $50.48 depending upon geographic location and the choice of which of their three plans is chosen. For more information, please click on the link below.
http://www.cms.hhs.gov/FamilyFirst051118c-N.pdf
A) Medicare Part D is the newest edition to Medicare. Part A covers hospitalization and Part B covers medical treatment. In order to be eligible, an individual must be age 65 or permanently disabled. Eligibility begins on the first day of the individual’s birth month when he or she becomes age 65. Whereas individuals can begin receiving Social Security benefits at age 62, such is not the case with Medicare.
There is no premium for Part A, however Part B does have a premium, as does the new Part D. For the first time under Part D, beneficiaries can pay directly to a private insurer instead of the government, and the benefits are administered in the private sector too.
The basic Medicare Part D works this way. All Rx costs up to a $250 deductible are paid by the insured. Then Part D pays 75% until $2250 has been paid out by the insurer (US Gov’t). After this, any Rx expenses between $2250 and $3600 are paid by beneficiaries. Once the $3600 ceiling is reached, Medicare then pays 95% of pharmacy expenses. Medicare recipients at the poverty level are excluded from the above, and receive far richer benefits.
Insurers participating in the Medicare Part D program must offer benefits equal to or better than the above, and so far most are. By the end of December 2005 I will be certified to write plans issued by Mutual of Omaha in several states. Notice I said certified. Normally we just become licensed by filling out paperwork and waiting for licensing approval by the insurer. In the case of the new Medicare program, we must be certified, code word for test. So far premiums with Mutual of Omaha run between $18.24 and $50.48 depending upon geographic location and the choice of which of their three plans is chosen. For more information, please click on the link below.
http://www.cms.hhs.gov/FamilyFirst051118c-N.pdf
Monday, November 14, 2005
Medicare Part D Enrollment Begins
Q)What's the latest on Medicare Part D?
A)Today is the day enrollment in this program begins. Nov 15, 2005. In order to enroll without any penalty, eligible enrollees have until May 2006. There is much in the newspapers and internet on the subject now. Should you require more information please send your question with an e-mail address, and we will make sure you get a quick response.
A)Today is the day enrollment in this program begins. Nov 15, 2005. In order to enroll without any penalty, eligible enrollees have until May 2006. There is much in the newspapers and internet on the subject now. Should you require more information please send your question with an e-mail address, and we will make sure you get a quick response.
Tuesday, October 04, 2005
Medicare Part D
Q)Where else can people find information on the new Medicare Rx program?
A)Another excellent site is www.cms.hhs.gov, which is The Centers for Medicare and Medicaid Services. Under the heading, 'Spotlight,' is a listing of the companies that have so far had their new Medicare Rx plans approved in each state. Enrollment for the program begins on Nov 15, so now is the time to begin researching the program.
A)Another excellent site is www.cms.hhs.gov, which is The Centers for Medicare and Medicaid Services. Under the heading, 'Spotlight,' is a listing of the companies that have so far had their new Medicare Rx plans approved in each state. Enrollment for the program begins on Nov 15, so now is the time to begin researching the program.
Sunday, September 25, 2005
Medicare Modernization Act
Q)What is the Medicare Modernization Act, and how does it affect me?
A)If you are not age 65 or receiving Social Security due to disablity, this law does not affect you yet. This is the new Prescription Drug plan that President Bush promised to get passed if elected. For those eligible for Medicare, this is called Part D. The benefits will be priced and made available through private insurance companies and HMO's. The enrollment period begins Nov 15, 2005. For more detailed information, please view the website for the National Association of Health Underwriters. www.nahu.org. If you are an employer that offers Health Benefits, then you are required to inform your medicare eligible employees of their rights regarding this benefit. Here is the NAHU link for employers.
http://www.nahu.org/government/issues/medicare/employer.htm
A)If you are not age 65 or receiving Social Security due to disablity, this law does not affect you yet. This is the new Prescription Drug plan that President Bush promised to get passed if elected. For those eligible for Medicare, this is called Part D. The benefits will be priced and made available through private insurance companies and HMO's. The enrollment period begins Nov 15, 2005. For more detailed information, please view the website for the National Association of Health Underwriters. www.nahu.org. If you are an employer that offers Health Benefits, then you are required to inform your medicare eligible employees of their rights regarding this benefit. Here is the NAHU link for employers.
http://www.nahu.org/government/issues/medicare/employer.htm
Tuesday, September 06, 2005
Private Insurance vs. Socialized Medicine
Q) What is the difference between Private Insurance and Socialized Medicine?
A) The short answer is that with Private Insurance, premiums are paid to a business that pays for medical claims as outlined in a contract, as opposed to government controlled coverage whereby the premiums are paid in the form of taxes.
Q) So which is better?
A) This is an ongoing debate. I can give lots of reasons that private coverage is better most of the time. What is your opinion?
A) The short answer is that with Private Insurance, premiums are paid to a business that pays for medical claims as outlined in a contract, as opposed to government controlled coverage whereby the premiums are paid in the form of taxes.
Q) So which is better?
A) This is an ongoing debate. I can give lots of reasons that private coverage is better most of the time. What is your opinion?
Wednesday, August 17, 2005
Individual v. Group Health Insurance
Q. What's the difference between Individual and Group Health Insurance?
A. This applies mostly to Florida, but it's the same in much of the USA. Group insurance is generally gotten through your employer, and paid 50% or more by the employer. Getting the coverage doesn't take much more than just signing the paperwork and turning it in. If you don't have coverage with an employer and need to make the buy yourself, then you are subject to the decision of the Health Plan to approve you for coverage. In Florida, individuals do not have to be approved for coverage, and can be issued policies with rate-ups for medical conditions.
Please feel free to browse my website. www.starkinsurance.net
A. This applies mostly to Florida, but it's the same in much of the USA. Group insurance is generally gotten through your employer, and paid 50% or more by the employer. Getting the coverage doesn't take much more than just signing the paperwork and turning it in. If you don't have coverage with an employer and need to make the buy yourself, then you are subject to the decision of the Health Plan to approve you for coverage. In Florida, individuals do not have to be approved for coverage, and can be issued policies with rate-ups for medical conditions.
Please feel free to browse my website. www.starkinsurance.net
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