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General Misconceptions Over Insurance Costs

2012-05-01T02:39:56Z

A new LIFE Foundation and LIMRA study released April 25, 2011, finds misconceptions over cost may be preventing many from getting the coverage they need.

Survey respondents were asked to estimate the annual cost of a 20-year, $250,000, level-term life policy for a healthy 30-year old consumer. The actual cost is roughly $150, but Americans estimate the cost at $400. Younger adults, who are most likely to qualify for preferred pricing, overestimate the cost by nearly seven times the actual cost.

According to the 2012 Insurance Barometer Study, nearly a third of all consumers believe they need more life insurance, including 20 percent of current policyholders and about half of those who do not have any coverage. Yet one of the top reasons consumers cite for not obtaining more is that the product is “too expensive” (83 percent), second only to those who say they haven’t purchased more because they have “other financial priorities” (85 percent).

Marvin H. Feldman, CLU, ChFC, RFC, president and CEO of the LIFE Foundation said, “If someone offered to sell you a gallon of milk for $10.00, you would likely choose to spend your grocery budget on other necessities, knowing that the actual cost is closer to $3.50. If people think that something is too pricey, they often won’t give it a second thought. The fact is, the cost for basic term life insurance has fallen by about 50 percent over the past 10 years and has never been more affordable. Owning life insurance is fundamental to a family’s financial security, and our industry needs to do more to help educate people about the true cost of protecting their loved ones.”

Unnecessary Medical Treatments

2012-04-05T18:08:00Z

Nine physician specialty societies collectively representing about 375,000 physicians nationwide on Wednesday each unveiled a "top five' list of tests or procedures commonly used, but often unnecessary, sometimes harmful and contributing to the nation's skyrocketing health-care costs.
Should you get a cardiac stress test as part of your annual checkup? A chest X-ray before outpatient surgery? A CT scan or antibiotics for chronic sinusitis?

In most cases, no.

But patients get these commonly used tests and procedures — and many more — all the time, even though medical experts say they often are unnecessary, can be harmful and contribute to the nation's skyrocketing health-care costs.

The Congressional Budget Office (CBO) estimates that up to 30 percent of the $2.6 trillion annual health-care costs in the U.S. go toward tests, procedures, doctor visits, hospital stays and other services that many medical experts say do not improve patients' health.

Physicians and patients need to talk about ordered tests or treatments, many of which are requested by patients. It is hoped that the list encourage more discussion about appropriate testing and treatment plans.

(Originally reported in the Chicago Tribune, April 4, 2012, by Deborah L. Shelton and Julie Deardorff.)

Lower Your Health Insurance Premiums with a Checkup

2012-03-06T19:44:30Z

Why do health insurance premiums go up every year? There are of course, several reasons beyond an individual's control for this, but sometimes covered employees contribute to these increases themselves without realizing it. I was recently reading an article in LifeHealthPRO, a publication of the insurance industry entitled "Health Insurance: Employees Shoot Themselves in the Foot by Brian Anderson".

The article went on to explain how employees can raise their own medical costs by not properly utilizing their health benefits. It turns out that in many companies, the employees do not select a primary care physician. Many of these same employees do not go to the doctor for an annual checkup largely because they do not have a doctor. These annual checkups may be included in their present plan either for free or with as little as a $20 co-pay. Instead they wait until they suffer an illness and then go to the emergency room. For this ER visit they will pay something like $150 as a deductible, but the company's health insurer is billed many times that amount for the ER visit. This is one of the many factors that leads to a company insurer's claims exceeding what it collects in premiums. So what happens to the premium the following year? You know the answer.
Intellectually, we all understand the early detection is a key factor in controlling healthcare costs, but too many of us just do not go to the doctor on a regular basis.

Another example in the article is the issue of generic versus brand name pharmaceuticals. The manufacturers of the name brand pharmaceuticals want patients to continue using their drugs and not switch over to the less expensive generic brands, so they offer a $4.00 co-pay card that people can use at their pharmacy.

You can keep using the brand name for only $4.00 per prescription. Great idea right? The problem is that the insurer is going to be charged about $140 for that prescription. If you had gone with the generic pharmaceutical the insurance company would've been charged about $7.00. You see the trend.

Remaining healthy does require some effort, but it does not have to be overly expensive. Take the time for that annual checkup. We can't afford that ER visit.

Trouble with weight regain?

2011-10-28T16:04:16Z

If you have had trouble with regaining weight after losing it, you know you are not alone. Weight regain in dieters is a common problem and there appear to be biological reasons why this is so.

A study supported by the Australian government indicates that following significant weight loss (losing 10% of body mass or greater), hormones persist in the body stimulating a hunger response to restore lost weight for at least a year and perhaps longer.

In a study involving 34 overweight subjects enrolled in a rapid weight loss program, scientists checked the blood levels of nine appetite influencing hormones. Comparing the hormone levels from before the weight-loss program to one year after it was over, they found six hormones were still out of balance in a direction that would boost hunger.

People who lose significant weight not only gain bigger appetite but also burn fewer calories than normal, creating "a perfect storm for weight regain", said Dr. Rudolph Leibel, an obesity expert at Columbia University in New York.

Experts not connected to the study said that this imbalance is not surprising. Avoiding weight regain appears to be a fundamentally different problem from losing weight in the first place. Permanent weight loss is a two part challenge and the second part of avoiding weight regain can be the most difficult challenge.

Perhaps the strongest message of the study is "it's better not to gain weight than to try to lose it," but for those of us who have already put on the extra pounds, this knowledge can help us in our weight loss battle. Knowing what we face helps us to prepare.

Reaching our weight loss goal is the beginning, not the end of our program. We need to realize that like an addiction, our appetite is going to re-assert itself to undo what we have done. If we return to life patterns that caused us to gain weight in the first place, no amount of temporary dieting or temporary fitness plans are going to affect permanent change. This is not just a psychological challenge, this is a physiological challenge. We have to strategize accordingly.

Balanced diet and exercise are still the best ways to become a healthier person and if we persevere, they too can become habit forming.

Source: AP Newswire - follow this link to the complete article.

http://news.yahoo.com/not-fault-hormones-linked-weight-regain-210323538.html

The Most Important Trait for Success

2011-10-10T16:15:40Z

I recently read an article in Forbes about what was considered the most important trait a person needed in order to be successful. The trait was trustworthiness.

The article was interesting because it pointed out that appearance can be just as important as fact. Machiavelli made this observation 500 years ago and it was as true then as it today.

The author, Heidi Halvorson made the point, "If you want other people to believe that you are trustworthy, you should be aware that you may be seriously undermining that belief if you appear to lack self-control."

How do you appear to lack self-control? There are behaviors like overeating, smoking, impulsive spending, being late, disorganized - all are part of non-verbal cues you broadcast about who you are. Ms. Halvorson says that you have to conquer these trust saboteurs if you want to be trusted.

Correcting these behaviours requires discipline and will power. She says that if you want to build more will power, start by picking or avoiding an activity that fits with your life and your goals. Then add this to your daily routine so it requires you to override an impulse or desire again and again.

Self-control can be developed, but like muscle memory for any skill it has to be developed over time. If you would like to read Heidi's complete article, follow this link.

HealthNation Scam?

2011-10-10T15:32:14Z

When something new comes along sounding too good to be true, it usually is. In this case however, HealthNation is the genuine article and definitely not a scam. They provide full disclosure and deliver what they promise.

I personally attended the company launch in Scottsdale, AZ and had a chance to meet the founders of the company as well as a couple of the doctors in their network. I even met a man who survived a heart attack because of his membership in HealthNation.

HealthNation is all about getting creative to combat high health care costs. This is a true innovation. It increases access to everyday healthcare while providing exceptional quality and speed of care.

Here’s a solution most people do not yet know about, and yet most people want as soon as they understand how it works.

Once you subscribe, you pay a low individual monthly $20 fee. This grants you 24/7 access to a nationwide network of medical doctors or, if you prefer, licensed naturopaths 365 days per year. No matter the time of day or the day of the week. Christmas day, the 4th of July, whenever... you can reach a doctor whenever the need arises.

Visit this Health Nation link and hear what actual users of the service have to say. You can play the video on the home page and see for yourself.

A Healthcare Plan With No CLASS

2011-09-26T15:37:51Z

The Community Living and Assistance Services and Supports program (CLASS) was the part of Obamacare that was to provide for long term care. It now appears that the administration is going to shelve it. HHS denies that CLASS is being terminated and say that they are just pausing for a further analysis of the program.

HHS may not be ending the CLASS program outright, but it does appear that they are backing away from it with the following statement; "As we have said in the past, it is an open question whether the program will be implemented."

As virtually everyone who is versed in such programs has said all along, CLASS makes no actuarial sense the way it was proposed. Supporters have attempted more contortions than a Cirque de Soleil acrobat trying to find a way to justify this actuarial fantasy.

The main flaw with this program is that, unless large numbers of healthy people, who will probably not need the care, voluntarily sign up, premiums for the smaller number of less healthy beneficiaries will soar beyond any reasonable expectation of their ability to pay. The only way to keep premiums low would be for the government to subsidize it or to mandate enrollment. Can you say new taxes? I knew you could.

According to the Wall Street Journal, the actuary responsible for the CLASS cost estimates has left the program and is returning to the private sector. Eight people on the program staff have been told that they are being reassigned. Although Sebelius has until next year to make a decision, there is mounting sentiment among industry experts that the CLASS Act is dead.

So why "pause" it without terminating it? One possible reason is that as long as it stays on the books, it counts as reducing the deficit in the 10 year budget accounting window. This accounting slight of hand occurs because the Act mandates several years of premium payments before it has to pay out any benefits.

Meanwhile, the LTC insurance industry is left in limbo. This is what happens when bureaucrats with no experience in an industry, meddle where they do not belong.

Why the Sales Person is a Great Resource

2011-09-21T17:43:35Z

More years ago than I like to remember, I joined a major US Corporation as a sales representative. We provided an innovative and technologically complex product which completely revolutionized the market place.

At the time, convinced they had "state of the art", businesses saw no reason to investigate a new technology. It was always a challenge to get that first appointment or agreement to a attend a demonstration.

What a different attitude they had when I was able to expose them to our product and they realized immediately that by using this new technology, they were going simplify their operations and best of all, make a lot more money.

Why am I telling you this on a health care centered blog? It is because a company may have exactly what the people need, but if the people do not know about it, they will not even consider it, let alone use it.

When something is either complex or unique, it is diffiicult to communicate through advertising alone. Professional sales people can do what mass media campaigns cannot. They can answer specific questions and assist consumers at their own pace.

Insurance can be a complex subject. Health Care Insurance in particular can be a difficult area for most consumers to understand. With all the nuances of the various products out there, coupled with the maze of ever changing government mandates, how is the average person able to make an informed decision?

Knowledge is power and a professional sales representative can give you access to the knowledge. A sales person is both an educator and an evangelist benefitting both the company and the consumer. This is why many companies still choose to use a direct sales force. This is why many consumers still choose to buy from sales people over automated systems.

HealthNation

2011-09-21T04:56:54Z

I recently discovered a new company providing a very interesting service. HealthNation has a new economical approach to health care using telemedicine.

Telemedicine is the delivery of medical services through electronic means such as the phone, email or video. I was fascinated to learn that research indicates greater than 3/4 of doctor visits could be handled over the phone.

Think about how this could lower medical costs. It allows doctors to extend their reach to a far greater number of patients and it extends access to medical advice and service for a greater number of people.

Health Nation has assembled an impressive group of highly qualified medical doctors and licensed naturopaths to service the public using telemedicine. Once you are plugged in the network, it really is like having a doctor in the family.

I am planning to go to Scottsdale to check them out. I'll keep you posted.

Heath Savings Account (HSA)

2011-03-23T17:26:00Z

Health Savings Accounts (HSA's) are proliferating as a solution for rising insurance premiums. HSA's require implementation of high deductible insurance plans and can be an effective alternative for some workers. By reducing your insurance coverage, you in turn pay lower premiums. An HSA allows you to put aside tax sheltered funds into a separate medical savings account to help cover the costs of this reduced coverage.

The problem comes if you have a major medical expense before you can build up a decent balance or if you have medical expenses which deplete your HSA and leave you exposed to new expenses. There are limits to how much an worker can legally contribute, but more importantly afford to put aside into an HSA and the dollar amount for prescriptions, deductibles and co-pays can be significant.

To see how significant, please follow this link. http://www.thehealthunderwriter.com/prod01_SHC.htm

Supplemental Health care Plans can be a relatively inexpensive way to manage these financial risks by covering part of or in some cases, even all of these expenses.

The money is paid directly to you (unless you select otherwise) and you decide where to spend it. This means that the cash you receive can reimburse you for expenses not covered by any major medical plan such as, groceries, utilities, car payments or any other of the expenses which continue whether you are laid by and accident or illness or not.