The last two weeks financial crisis has Washington insiders expressing their concerns that there will not be any significant health care reform in the next year or beyond. Some political strategists have suggested that we may see "baby steps" or small health reform changes over the next twelve months.
Meanwhile the House Ways and Means Committee has introduced a Health Information technology bill that will encourage insurance providers to invest in electronic systems. These systems will be necessary to better improve the customer and insurance carriers need to provide accurate and vital information. Such a measure will especially be useful in potentially cutting the cost of prescription medications by avoiding over prescribing medications if more than one healthcare provider is used, as well as providing the ability to share information to provide better medical care.
Online insurance broker's have already started to adapt to the new technology wave by allowing individuals the opportunity to shop for affordable health insurance plans online, using the same information systems that were formally only available to insurance insiders. Instantly shop, quote and compare plans online 24/7. There is even a feature to allow you to apply online or download a paper application.
This week the nation's largest insurance company teetered collapse before the US government stepped in and made an $85 billion dollar loan. This loan was needed by the parent company, however AIG has insurance subsidiaries around the world and it is assumed that these companies are well capitalized and maintain their claims paying ability. It is reported that AIG's troubles began by buying and guaranteeing mortgages and mortgage securities in other subsidiaries.
How do you know if your insurance company is safe? At this time there has not been any other companies that have reported trouble by mortgage debt obligations, however watch the marketplace carefully. If any regulated insurer could not pay its claims, you should know that each state's insurance commissioners have a protocol in place to protect the customer.The first step is rehabilitation. If this happens and liquidation is the last resort, the state has a guarantee agency to pay insurance benefits (limits apply). Procedures are in place for different lines of insurance, such as Property and Casualty, Life, Disability, Health and Long Term Care insurance and Annuities.
Companies such as A.M. Best rate insurance companies. You can also check them out at www.naic.org (a consumer site). You can also view information on your state's department of insurance website.
If you own an AIG policy, do not cancel, lapse or be persuaded to by a replacement policy. There will be many sales agents out there that will use scare tactics to sell you a new plan and generate a new commission. It's not panic time - yet.
Whenever you are considering buying a new insurance policy, use an online insurance brokerage firm to shop and compare insurance policies. Although you may need to contact your local insurance agent at a later date, it is always best to be an informed buyer and in many cases you can actually receive a free quote, compare and buy insurance online.
As the fall season approaches, many large and small companies will begin to start shopping for their 2009's employee benefit programs. Typically employers should plan on shopping insurance 60-75 days before the desired effective date.
High deductible health plans and Health Savings accounts will continue to be popular. These plans make workers responsible for costs up to a certain amount but then covers most expenses over that. Workers have a greater risk of paying out-of-pocket expenses, but premiums are lower — so their paychecks are higher. Wellness programs encourage them to take care of themselves, ultimately cutting costs for themselves, their employer and the health plan. Wellness plans usually allow employee's to visit the doctor for a flat co-payment of $20-$40, for services such as well baby care, annual physicals and well woman's check up's. Others allow for office visits without first satisfying their deductible.
For 2009, most employers will see premium increases in excess of 10%. This leaves employers already stressed by a stagnant economy with a larger dilemma: how to offer good health benefits to keep or attract quality workers at a price they can afford.
It is important to plan ahead. October is a great month to begin shopping for 2009's benefit plans. For employer groups with less than 50 employees, shop online with an internet brokerage firm. Before you start the process you will need some basic information. It's actually very simple. You will need your employees dates of birth (along with any family members participating) and their zip codes. The plan design and costs will evolve as you begin to shop for plans. An online brokerage service such as Quotebroker.com allows you to use the same software system brokers use to shop and compare prices throughout the state. Instantly compare affordable health insurance options without ever speaking to an insurance agent. Once you have completed your market study, QuoteBroker has Group Insurance specialists available to assist you with the enrollment process. Larger groups are encouraged to use a quality insurance broker that has experience in negotiating rates with multiple insurance providers.
If you have more than 20 employees "ask for more". There is often room to negotiate lower rates for additional products such as dental, vision and term life insurance.
