Category Archives: Health Insurance

Florida Individual Health Insurance in Today’s Market

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One fundamental aspect of having Florida individual health insurance is that the policy owner is exactly that – the owner of the policy. Did you know that many people have insurance their whole lives, but never actually own their own plan? Sometimes, this means nothing, but in other cases it can lead to disaster. It’s important to know the implications of not owning your own health insurance so that there are no surprises in the future and you suddenly find yourself without coverage.

Picture the following: John is 30 years old, in perfect health, with a wife and child. John works for the next 25 years for various companies that have provided him with group health insurance benefits his entire adult life. John has always added his spouse and child on to the policy without ever really thinking that there could ever be any kind of drawback. Fast forward to when John is 55 years old, and through no fault of his own he is let go from his company. He has, since age 30 been fairly healthy, but back when he was 50 he came down with prostate cancer, which he fought through and is doing fine now. However, now that John is unemployed, he suddenly finds himself uninsured and uninsurable due to pre-existing condition. He cannot qualify for individual health insurance because he had guaranteed-issue group insurance his entire life, but now that he’s out on his own, he cannot qualify for an affordable individual health insurance plan.

When someone is on a group health insurance plan, they are not the actual owners of the plan. They are given a certificate of coverage and are allowed to use the plan, but they do not have control over it. They might only have 1 or 2 choices between plans. The plan could get changed by the company at a moment’s notice, downsized, or cut completely off in some cases. Companies that are legally required to offer health insurance benefits will sometimes choose the poorest plan to cut costs but satisfy the legal requirement. For someone who was enthusiastic about a new position, this can sometimes put a huge damper on their new job.

When a family is on an individual health insurance plan, they have total control over their benefits. They are the owners of the plan and therefore have the freedom to choose whatever deductible and coverage options that they want without fear that it might all get changed around next year because a company decided it wanted to cut costs on health insurance benefits. For some, an individual health insurance plan can be a tax deduction, depending on the situation. For people who are self-employed health insurance can be a big tax break at the end of the year (This should not be taken as tax advice. Talk to your CPA for details).

Employees who are in a situation where a company offers benefits, pay close attention to what you’re about to read. Sometimes, even if the employer pays a portion of the health insurance costs, group insurance is sometimes so much more expensive than an individual health insurance plan, the employee can save money by actually waiving coverage from the group plan and purchasing their own health insurance plan. For those who have an employer who does not pay ANY portion of the health insurance premium, it is definitely a good idea to get a free individual health insurance quote. You may be amazed at how different the rates are between individual and group health insurance.

If it makes financial sense, or even if it’s only a few dollars difference per month, for residents of Florida individual health insurance is the best way to ensure that your insurance benefits controlled and owned by you, and not the workplace. We have been in this business long enough to hear the horror stories. The cancer survivor who was laid off of his job and can never qualify for individual health insurance ever again. The office manager who was in between jobs and had a car accident in the 90-day gap between her insurance coverage. these things happen. We all think it will never happen to us, but the reality is it can, and it does. Do yourself a favor and get free Florida individual health insurance quote today and see where you really stand.

Florida Health & Life Insurance Coverage – Efficiency In Insurance

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When it comes to Florida health insurance coverage and life insurance, there’s a word that should come to mind. A word often overlooked in the insurance world, mainly because most consumers do not have the knowledge of what to look for.

“Efficiency”

What does it mean to have efficiency in your insurance coverage? The definition I’d like to use for this article is, “Making every premium dollar go as far as possible, without being over insured.” The concept of efficient insurance coverage is foreign to most consumers because nobody really makes people stop and think about it. People don’t randomly ask themselves, “I wonder… am I getting the most out of my insurance premiums?”. What does it take to determine if you’re investing in your protection efficiently? We’ll start with health insurance and then move on to life insurance.

Efficiency in health insurance has a lot to do with cost and risk sharing, which makes sense considering that’s all that insurance really is – the sharing of risk with an outside entity for a premium. What you’re about to read might shock you. One seemingly helpful benefit in health insurance may very well be causing more harm than good, and when you see what I’m talking about, you’re probably immediately going to disagree. I’m talking about a “Doctor visit Co-Pay” benefit. The concept of a Co-Pay seems to make a lot of sense. Instead of paying the whole bill for a doctor visit, you pay a flat pre-set amount instead, and the insurance company pays for the rest. Sounds good right? In many cases co-pays can be a very good thing. Families with a lot of children, and people with ongoing medical conditions have a GREAT need for co-pays… but that doesn’t apply to everyone.

Consider the following two facts: 1) Co-Pays do NOT apply toward a health insurance deductible or out-of-pocket maximum in most cases and 2) Having Co-Pays on a plan costs money. If health insurance coverage has Co-Pays included in the price of the premium but never get used, it’s not an efficient use of premium dollars. On the same token, if Co-Pays are used heavily but do not apply toward a deductible, the out-of-pocket exposure is still higher which costs the insured more money. Again, not an efficient use of premium dollars for many.

Having efficiency in a life insurance policy is far more complex, and we suggest reading our previous blog post about term life insurance to somewhat familiarize yourself. Since life insurance has widely varying degrees of coverage, options, and flexibility, we won’t go into every small detail today but instead cover some of the basics. Life insurance can be the best or worst investment you will ever make in yourself. Think about it, in a health insurance plan there are certain perks and up-front benefits that you have access to just from owning a plan. In life insurance, there’s a possibility that you will pay thousands of dollars over the course of the policy and never get any kind of return on your investment if you outlive the policy’s term. This is known as term life insurance. On the other hand, life insurance such as Universal Life Insurance and Whole Life Insurance provide a vehicle to accumulate cash value over time at either the current interest rates, or through dividends. Would you rather pay for life insurance that you know you’ll be paid back on, or would you rather pay for life insurance that you may get zero return from? This is essentially the difference between term and permanent life insurance. Granted, there are policy riders and benefits that can help fill in the gaps between term and permanent life insurance, but that’s a conversation you need to have with your insurance broker. No two families have identical needs and situations, and there are enough options and flexibility out there to fit any situation.

Finding the efficiency in health insurance coverage and life insurance is not something you’re supposed to know how to do on your own, and there are MANY things that we did not discuss in today’s blog post. That’s why we make ourselves available as insurance professionals to guide and make sure you’re doing the right thing for you and your family. You may be leaving a lot of money on the table. For more helpful information, feel free to contact a broker to learn more about your options so you can make the most efficient decisions possible in your insurance coverage.

Florida Health Insurance Rates on the Decline?

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It’s no secret that the the Florida health insurance market has had a giant question mark over its head since the Affordable Care Act was signed into law in 2010. Benefits have increased almost straight across the board with every health insurance carrier in the United States, and as a result, prices have risen steadily. If you give more benefits, you have to charge a higher premium. However… is it possible that the cost of health insurance in Florida has actually dropped in some cases?

Every health carrier uses its actuaries to determine the risk-to-price ratio in order to determine its premiums. What most consumers do not know is that rates can actually fluctuate from year to year based on their calculations, and they don’t always just go up. Our Orlando insurance office has had cases where rates have actually decreased this year with certain health insurance carriers despite the benefits rising. How is this even possible?

Health insurance rates are determined by zip code – yes, that’s right. Different zip codes have different rates. An insurance company will look at an overall snapshot of that zip code and factor things such as how many claims that zip code has had and how much the insurance has been used, basically tallying up when they have had to pay out for the policyholders of that zip code. For this reason, if one policyholder in any given zip code gets a rate increase based on utilization, that means everyone in the zip code will get the same percentage rate increase even if that person never used their health plan! It goes both ways however… If a zip code has had a particularly good year (i.e. not many insurance claims), the rates can experience a drop.

To put it very simply – the overall health and claims of your fellow policy holders in your local zip codes will directly affect YOUR health insurance rates weather you’ve used it or not.

Now, I’m going to tell you something that the insurance companies do not want you to know. If the risk profile in your local area drops, the company will not lower your rate. If someone were applying for new coverage they would get the better rate, but a current policyholder will almost NEVER see a decrease in their health insurance rates, even if the numbers are favorable. So, what can you do about it? Talk to your broker, and ask them to re-quote you at this year’s rates. If you don’t have a broker, you can talk to one of our brokers, and we’ll be glad to help. Many times, a carrier will not re-rate you even if your new rate is lower, so at that point it might be time to get a free health insurance quote and look for a better deal elsewhere. We are not condoning switching health insurance carriers every year, but if you have had a plan for 3-5 years, it might be a good idea to do a little shopping for a better rate. 4 out of 5 times, you will probably find one.

Staying on top of health insurance can save a family a lot of money over time. Don’t wait until its too late or you may find yourself stuck somewhere you don’t want to be. Review your policy carefully and make sure you’re getting the right coverage for the right price. Ask questions, demand answers, and don’t ever let anyone rush you into buying a plan.

Florida Health Insurance – Why Did My Rates Go Up?

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It happens over and over again. Floridians purchase a health insurance plan for their family and are very happy with the coverage they have selected, but as soon as they are finally settled in and familiar with it, the yearly renewal comes around and ruins everything.

What happened? The infamous RATE INCREASE! Take a minute and follow along as the Integrity Insurance Brokers Blog addresses rate increases in health insurance, why they happen, and tips to make sure your family keeps the same quality coverage at an affordable price.

 

WHY DO RATE INCREASES HAPPEN?

Policyholders receive yearly rate increases in their health insurance for a number of different reasons. The most obvious would be age. That’s right, you are almost guaranteed to get a rate increase each year because you have gotten a year older. The insurance company cannot charge a 40 year old the same rate as a 41 year old because the chance of getting sick or hurt rises with age. Another reason is claims. Some insurance companies will single a policyholder out for a rate increase if they file major claims. Utilization of health insurance for a zip code also impacts the individual rates. Did you know that if a high number of claims are submitted from policyholders in your county or zip code with the same carrier as you, that it can cause your health insurance rates to go up? That is because it’s now statistically more likely that someone in your zip code will cost an insurance company more money than before. Furthermore, carriers sometime have renewal rates that are different than new business rates. Quite simply, they charge current policyholders more than new members.

WHAT CAN I DO ABOUT IT?

You have options! Many insurance companies expect an insured to just accept the rate increase so they can keep their current health coverage that they are comfortable with. They know that most people are resistant to change, so they pay the higher rate out of fear. What they don’t tell you is that if you shop around for a better rate, many insurance companies will be glad to quote you at the new business rates instead of having to accept the renewal rate. Often times you can find a better health insurance rate by getting a new quote. Granted, it’s not recommended to switch health insurance coverage every year, but if there is a significant difference in price, definitely ask questions to see if switching might be right for you.

Contact your broker if you got a large rate increase in your health insurance this year. If you do not have a broker, we can assist you and provide you with competitive quotes. Get a free health insurance quote today.