Protection You Trust Part 2: Health Insurance
How To Make The Affordable Care Act Work For You
So you’ve read up on Life Insurance, checked out the life insurance calculator, and maybe even called Mike or Kane for a quote.
Basically, you’re all set in the Life Insurance department.
But now, we’re bringing you the facts on Health Insurance. There have been some big changes in the Health Insurance world in recent years, and all those changes can be confusing. But no need to worry! We’re here to make sense of it all.
First of all, there’s different main types of Health Insurance.
Individual Protection
Family Protection
Group
Individual and family protection are very similar, in fact, the only difference is that individual is for just you, while family is for your family (simple, right?). Group Health Insurance is for groups of people like a small business’ employees. Other types are Short Term policies and Disability Insurance.
But first, we’re going to go over the basics: the three main types.
Related Link: Health Living Tips from AETNA
Health Care Reform
All these health insurance policies are now being written under the Affordable Care Act. The Affordable Care Act is the Health Insurance reform that President Obama put into action.
This Act, although under major scrutiny by the American people, did some really great things.
The ACA cut out all medical questions when applying for Health Insurance. The policy you would be given would be based off the following:
Gender
Age
Whether or not you smoke.
No other medical questions will be asked when applying for health insurance coverage, which for some people can be really great.
And others, not so much.
Basically, if you have a bad medical history with a lot of claims and illnesses, you will be getting good health coverage at a very nice cost to you.
A lot of people who could not afford health insurance before, can now.
However, if you have an excellent medical history with no claims, you would be getting the same premium amount as someone the same age and gender as you, when before the ACA, you would be getting a lower cost policy.
Luckily, when the time came to renew your policy, there was the option to keep your current policy if you would be paying more under the ACA.
Hopefully you chose this option if your rates were better before the Affordable Care Act.
Take advantage of this opportunity!
Overall, The Affordable Care Act has brought some great changes to those who have struggled obtaining a good health insurance policy.
Related Link: Key Features of The Affordable Care Act
Health Insurance Coverage
Once you figure out what kind of policy you will receive, what exactly does it cover?
Well, your health insurance is going to pay for medical bills.
Just like any other insurance policy, you will have a deductible that you must pay before your insurance will pay a dime.
For instance, if you go to the emergency room with a $1000 deductible on your health policy, and your bill for the emergency visit is $4000, then you only pay $1000, while the insurance company pays $3000.
Another expense your health insurance will cover is preventative care.
This means yearly physicals and other appropriate checks like mammograms for women past the age of 40 and blood pressure check ups for those with high blood pressure.
Along with your deductible could be things like your copays and a drug card.
Co pays are basically for irregular check ups at your doctor. If you go in because you have the flu, you will have to pay a portion of that medical bill, usually a small amount like $20 or $30 out of a $150 bill. Think of it like a mini-deductible for non-preventative doctor’s office visits.
Another feature of your health insurance policy could be a drug card. This would allow you to get prescription medicine for a smaller cost if you would ever need it.
A really great feature of health insurance is that it not only covers physical health, but also mental health. Treatment of mental illnesses is just as important as treatment of physical illnesses, and health insurance providers now recognize that.
Related Link: Stop Struggling with Mental Illnesses
Other Types of Health Insurance
Short Term policies and Disability Insurance are also very valuable forms of health insurance. First, we’re going to go over short-term.
Short Term policies are what they sound like, a health insurance policy that does not last as long as a normal health policy. The main reason people get this kind of coverage is if they are in between policies.
For example, children are allowed to stay on their parents health policies until the age of 26. Short Term coverage can give these children a coverage option until they purchase their own policy.
Basically a short-term policy will have you covered for when you are in between coverage.
Related Link: Health Savings Account Explained
Disability Insurance
This one’s a biggie, and most people don’t even realize it.
Disability Insurance is a must.
Basically, Disability Insurance covers you for when you become disabled by an illness or accident and cannot work.
This is different from Worker’s Compensation, which only covers you if you were injured on the job.
Disability Insurance however covers your paycheck.
What most people don’t realize is that their paycheck is their most valuable asset.
Everyone depends on their income to pay for day-to-day expenses. Not having that income covered can mean a lot of trouble if an accident or illness were to strike.
And although you think that an accident will not cause you to need disability insurance, over 1 in 4 of today’s 20 year olds will become disabled before reaching the age of 67*.
You need disability insurance to protect your paycheck.
Related Link: Start Learning about Disability Insurance with LifeHappens.org
All These Options
Having all of these different types of insurance can be very confusing.
Heck, my head is spinning just writing about it.
Once you pick out whether or not you need individual, group, or disability there’s even a few more specifics to go over: things like a high deductible policy or a Health Savings Account.
Getting into detail over these, though, would need to be a whole other blog post!
But we at Hugh F. Miller Insurance have just the right guy to explain all of this with you, in-depth.
Mike Edwards, our Health Insurance Agent, can guide you in the right direction of what policies you need.
You can email him here or contact him from the info below.
The only time to apply for health insurance coverage is during open enrollment, which is coming up soon.
Call Mike anytime between November 1st and January 31st to apply for health insurance.
Still have questions about everything? Comment below or contact us from the info below.
If it’s important to you, protect it with someone you trust.
Contact Info:
815.626.1300
contact@hughmillerinsurance.com
801 1st Ave Rock Falls IL 61071
How did you hear about us?
Let us know when you call or by commenting below.
*Source: Social Security Administration, February 7, 2013