Georgia Health Insurance 411

Archive for March, 2010

If you bought a Georgia health insurance policy from Imerica you need to find new coverage fast.

FROM: STEVE A. UHRYNOWYCZ, DEPUTY RECEIVER

DATE: MARCH 25, 2010

RE: STATUS OF IMERICA’S RECEIVERSHIP

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This communication is to update you as to Imerica’s status.

Imerica cannot be rehabilitated, and we expect that Imerica will be placed into liquidation in the next 30 – 45 days.

By a separate mailing, policyholders have been advised of this development. They have also been advised that, while State Life and Health Insurance Guaranty Associations will continue coverage and pay claims for a limited time, they should take steps to obtain insurance coverage to replace their Imerica policy as soon as possible. As such, you are free to transfer Imerica policies without being in violation of the November 18, 2009 receivership order.

Policyholders were also advised that Imerica has partnered with Golden Rule Insurance Company to give them a direct contact about replacing their Imerica coverage.

Once Imerica is placed into liquidation, you as well as all other claimants owed money by Imerica will be forwarded information as to the process to file a claim for the money owed to you. As was indicated in the November 20, 2009 communication to you, commission payments are general creditor claims which are below administrative and policyholder claims and cannot be paid until all administrative and policyholder claims are paid in full. It is unknown at this time whether there will be funds available to pay any percentage to you or other general creditors.

If you have questions or need additional information, please contact Imerica at 1-877-imerica, Menu Option 4.

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How much will taxpayers contribute toward the cost of subsidizing your health insurance? Inquiring minds want to know.

The folks at Kaiser Foundation have set up this handy calculator.

Of course if the amount you must pay after the transfer of wealth subsidy is still too much, you can pay the penalty for non-compliance.

Perhaps you are wondering how the new health insurance reform legislation will affect you. So are a lot of folks. In spite of a year plus of haggling, we are just as much in the dark as we were when the backroom deals were done.

Here is our best guesstimate of what to expect during 2010. Using a list provided by WJLA, here goes.

Sets up a high-risk health insurance pool to provide affordable coverage for uninsured people with medical problems.

This is a national high risk pool. We have no idea what kind of benefits will be provided or what the premiums will be.

Neither does the White House, Congress or CBO.

Starting six months after enactment, requires all health insurance plans to maintain dependent coverage for children until they turn 26; prohibits insurers from denying coverage to children because of pre-existing health problems.

Health insurance premiums for children, and family plans that include children, will rise. Rough guess would be a 50% increase for children’s rates. Could be higher.

If mental health parity is included, double the rates for children.

Begins narrowing the Medicare prescription coverage gap by providing a $250 rebate to seniors in the gap, which starts this year once they have spent $2,830. It would be fully closed by 2020.

Look for an increase in PDP or Medicare Part D premiums. Initial increases will be nominal but will accelerate over the next few years as risk is shifted from the individual to the insurance carrier.

Reduces projected Medicare payments to hospitals, home health agencies, nursing homes, hospices and other providers.

Unless “doc fix” is passed, expect increased difficulty in finding a PCP that will accept new patients.

Imposes 10 percent sales tax on indoor tanning.

Pay more for tanning services. George Hamilton will not be pleased.

Don’t want to buy health insurance? No problem. The IRS will send you a tax bill. CNN reports the IRS may need as many as 16,000 new insurance police to enforce the law.

The penalty tax for non-compliance?

An adult who does not have health insurance by 2014 would be penalized $95 or 1 percent of income, whichever is greater, so long as the amount does not exceed the price tag of a basic health plan. But by 2016, the penalty increases to $695 for an uninsured adult, and up to $2,085 per household, or 2.5 percent of income, whichever is greater.

Let’s see. Buy health insurance or pay the greater of $95 or 1% of your income.

According to USA Today the average family health insurance premium is 2009 was $13,375.

The U.S. Census Bureau reports average 4-person family income for the last 12 months is $60,298.

OK math whizzes, let’s work this through.

Buy health insurance for your family and pay $13,375, or

pay a $95 penalty, or

1% of your income which is roughly $603.

Which of the following does not belong? $95 . . . $13,375 . . . or $603.

Of course the prez also said family insurance premiums would drop by $2500 or 3000%, whichever is greater.

Reality check.

Yes, Joe, this really IS a BFD . . .

Time Insurance Company  just gave us more affordable health insurance rates in Georgia. For plans quoted today and going forward for effective dates of 5/1/10 or later, rates have dropped by as much as 28%.

A division of Assurant, Time has been essentially out of the market for quite a while. Their One Deductible HSA was at one time very competitive but it has slipped over the last few years as newer competitors entered the market.

Time has 5 basic plans but allows a great deal of flexibility by combining deductibles, copay’s and supplemental benefits to produce over 3,000 different plan designs. Four of their products are sub-standard with a lot of holes making them a poor choice at any price. But the Time One Deductible is a solid performer.

The new, lower health insurance rates and plans can be viewed online at My Time Insurance.

You may want to compare the new rates against other affordable Georgia health insurance plans at Georgia Insurance Shop.

According to the Washington Examiner, the folks at Caterpillar, the worlds largest manufacturer of construction equipment, have this to say about Obamacare.

Obamacare will take a huge chunk out of the American economy, so says Caterpillar, Inc., which said in a letter to House leadership that the bill under consideration would increase the company’s health care costs by more than $100 million in the first year alone

Well yeah, but they are a big company. They can absorb that cost, right?

The Peoria-based company is one of many hard-hit employers in Illinois, which has an unemployment rate of 12.2 percent. It’s delusional to think that adding $100 million to their operating costs won’t make it more difficult to hire. In fact, this is exactly what 130 economists said in their letter to President Obama yesterday saying that the bill was unquestionably a job killer.

Do you think Washington could be wrong about the impact and real cost of Obamacare?

Publix is making Metformin available at no charge. Get your prescriptions for generic immediate-release metformin (500 mg, 850 mg and 1000 mg) FREE, up to a 30-day supply (up to 60 tablets). There’s no limit to the number of refills of free medication you can receive.

New, lower  health insurance rates in Georgia! A major Georgia health insurance company will be releasing lower rates on Monday, April 22, 2010. We have been promised a 28% reduction in rates for those looking for affordable health insurance in Georgia.

More to follow, including a link to the new, lower rates.

If you want to buy health insurance in Georgia with a maternity option you will have fewer choices after April 20, 2010. Time health insurance company (still referred to by many as Assurant) will no longer offer a maternity benefit on policies issued after April 20th.

Time has not been a particularly competitive Georgia health insurance company for some time, but their maternity rider made them a good fit on occasion. Offering four maternity deductible options and only a 90 day waiting period, I found a reason to offer them to individuals and families looking for an affordable maternity option.

With Time leaving this market there are only three health insurance companies in Georgia that will offer maternity and all but one require the policy to be in place for a minimum of 12 months before benefits are payable.

After years of dealing with health insurance on behalf of clients, I am convinced that Georgia health insurance companies are mostly incompetent and definitely indifferent. Seriously.

For the most part, they do manage to issue a health insurance policy . . . some quicker than others. And they pay most health insurance claims on a timely basis and get them right the first time.

But dealing with health insurance companies at the consumer level is like trying to get something done at the Post Office or Department of Motor Vehicles. Consumers who contact health insurance companies for a rate quote will be given little more than “welcome to Big Insurance Company, what would you like to order today?”.

You might as well be visiting your local McDonalds.

I have had prospective clients call me after learning that their plan doesn’t cover outpatient doctor visits or medication . . . it only pays for services rendered while in the hospital. Of course they found out over a year later when they actually used their plan and discovered several thousand dollars of medication and outpatient service claims were denied.

Others have been encouraged to submit an application for health insurance and see what the underwriting department says. Of course that requires paying the first (and sometimes second) months premium and waiting a month or more for a decision. A few minutes on the phone and I knew right away their application was going to be rejected.

How about once the policy is issued? Surely you can get service then?

Don’t count on it.

A few of my clients have decided to handle things on their own by calling the health insurance company direct and asking about options for cutting their premium. One client was told the only difference in the plan she had and the one they suggested was the “new” plan did not cover maternity. Since she was 60 at the time she figured it was time to save a few dollars by dropping maternity.

Heads up.

By the time you get to 60 the cost of maternity is no longer factored into your plan. What the home office rep failed to say was the new plan had higher doctor copays, did not cover lab work until after the deductible was satisfied and had a much lower lifetime maximum. By the time I was notified of the change (when she got a whopping bill for lab work) it was too late to unwind the plan and put her back on the original plan.

Another client, seeking to save money and not wanting to “bother” me with something simple, called home office to request a lower premium option. Not only did the new plan eliminate coverage for doctor visits and prescription drugs, but the change resulted in the company dropping his daughter off the plan since “she did not meet current underwriting standards.”

Fortunately I was able to stop that one before the change was effected and we were able to unwind the damage done by incompetence in the home office.

You may think all plans are the same, and you will get good advice and good service from health insurance companies in Georgia but you are sorely mistaken. I deal with them every day, but have the ability to bypass the customer service reps and deal directly with managers and decision makers.

There are no additional charges or fee’s when you deal with a health insurance agent, and you pay the same premium whether you deal with a health insurance agent that is competent or incompetent. We have over 30 years experience in dealing with the problems, issues and challenges you will face. Buying affordable health insurance in Georgia goes a lot smoother when you allow us to help.