Insurance For The Self Employed And Those Seeking Health Insurance

First of all, congratulations on deciding to go out and make it on your own. The rewards and excitement of making it on your own can not be found anywhere else. Now, when looking for insurance for the self employed for a person like yourself, it's important to remember that generally you'll find better rates if you deal directly with the insuring company. There are many confusing options available but the good news is that there are quite a number of affordable health-insurance programs out there, and navigating the maze of available policies is easier than ever with the help of the Internet. The internet now allows individuals the chance to plug in a few personal details and obtain information on insurance for the self employed. Some questions to consider when choosing your coverage are the following:

1) Is it important that you keep your current Doctor?

2) Is it important that you have access to alternative care such acupuncture or massage therapy?

3) How high a deductible are you comfortable with?

Insurance for the Self Employed tailored to your needs.

Most people looking for insurance for the self employed are seeking modest insurance coverage, but they also want some of the basic essentials such as regular Doctor visits and prescription coverage. Keep in mind that your premium costs will vary depending on how high your deductible is and what kind of coverage you have. Generally the higher the deductible, the lower your monthly premiums. When choosing your coverage try to match low prices with quality coverage. Don't let the lure of having no insurance coverage persuade you that health insurance, even if you're seeking insurance for the self employed, is not something you need. That simply isn't the case. The cost of a major hospital visit can vastly exceed any premiums you may not have paid over the past several years.

Mike Yeager

http://www.a1-healthinsurance-4u.com/

mjy610@hotmail.com

Choosing Affordable Health Insurance For Children

Choosing Affordable Health Insurance For Children

In most cases, private health insurance comes through a person's employer, who picks up the majority of the cost of premiums. However, today many people, who are either self-employed or who work for a company that doesn't offer health insurance, find it necessary to obtain quality affordable health insurance for children. There are a wide range of plans and offerings of affordable health insurance for children and it's necessary to pick and choose from among the many plans available. For example, if you feel your family may need alternative health options such as massage therapy or acupuncture, you'll want to make sure your plan covers these choices.

Affordable Health Insurance For Children and families.

Another consideration is the cost. Generally, the higher your premiums the lower your deductible. But, don't let the lure of have no insurance coverage persuade you that affordable health insurance for children is something you don't need. That simply isn't the case. The cost of a major hospital visit can vastly exceed any premiums you may have not paid over the past several years. Experts tell us that it's very important that children have access to quality health care as they grow up and most people agree that in this day and age, everyone needs some type of health insurance coverage. With it youll have more peace of mind and, should you become ill, youre covered. The good news is there are quite a number of low cost health-insurance options available and navigating the maze of available policies is easier than ever with the help of the Internet.

http://www.a1-healthinsurance-4u.com/

mjy610@hotmail.com

Senior Health Care Insurance

Senior Health Care Insurance

Health Insurance For Seniors On The Net

When a good friend of mine inquired where he could obtain information about medical insurance for his out-of-state, elderly mother, I told him to try the Internet.

He reported back to me about a week later, in desperation: "I am giving up, I am too confused." He had taken on an overwhelming project with his widowed mother, living in another state. As the only child, and following the sudden death of his father, it was his responsibility to care for his mother.

In this world of technology, the family unit is often living in different geographical areas and the family members are usually quite involved with their own lives, careers, and families. In addition, when both parents are alive, often one or both parents are quite independent and do not require a lot of assistance. As time goes on things, of course, change, and sometimes change very suddenly. There can be a crisis, with regard to the health care needs of one or both aging parents.

With our baby boomers facing this problem in ever increasing numbers, and with the information highway in full bloom, there is a definite need for planning.

Protecting your parent's assets and health is a huge and daunting undertaking, which requires a tremendous amount of education and practical application. Our seniors face many diverse responsibilities upon reaching age 65. To name just a few: Estate planning, taxation, Medicare, social security, wills, insurance, and various other legal and financial matters. All of these different areas require expertise from accountants, lawyers, estate planners, insurance agents, home brokers, financial advisors, and others.

The Internet is a good starting point for most people to find resources for questions and solutions for your problems. There is, however, no replacement for good solid intelligent advice from an expert.

Twenty years ago, insurance for elders was sold by "senior insurance specialists", with just a handful of companies in each state. The programs were most often Medi-gap or Medicare supplemental policies, which covered the expenses not covered by Medicare, including hospital and doctor deductibles, durable medical devices, and non-approved Medicare costs. Ironically these specialists did not sell a lot of nursing care policies, even though Medicare paid a national average of less than 2% of these expenses. With the advent of "financial and estate planning" and more insurance companies entering this market, a more broad and diversified product line became available to agents, brokers, planners, and seniors.

Part of this new diversification was the "home health care plan", sold by itself, and in conjunction with senior health insurance products. The appeal of the "home health care policy" was that a senior could stay at home and still receive medical and custodial benefits, allowing a person to recuperate in the comfort of their own home.

This was the answer to a huge problem. The last place an older person wanted to go was a "retirement home", or "rest home", or, God forbid, the "nursing home." It appeared that seniors could now rely on this new innovation without worry of having to move out of their home environment in the event of a health problem.

As with most things," if it is too good to be true".... The home health care policy is no exception. The problem is, there is not enough coverage for a lengthy illness or recuperation time. The fact is, the new trend is toward an "all in one" type facility, allowing for a variety of levels of care all in one location. In other words a senior could start off with little or no health care concerns in an independent, less expensive area, and then go to an assisted living, or nursing care facility, all within the same compound.

A "nursing home" requires a nurse on the premises 24 hours per day, assisted living is just eight hours. The advantages to this are financial. The patient or senior is only charged according to the care level required during the time he or she is admitted to that facility. Another benefit is it alleviates a lot of planning because the care is delivered, as it is needed. The medical attention is available to all residents regardless of their current health.

Some people are offered a lifetime package, which covers their care for the rest of their life, regardless of their current age. It also allows for social outlets to an otherwise somewhat isolated group. On-line shopping services have become a huge business. It is definitely here to stay and many insurance policies are purchased from Internet quotes and on-line applications.

There are literally hundreds of thousands of insurance agents and brokers advertising on the Internet. Most of them will provide instant on-line quotes and even applications for the potential insured. I highly discourage a layperson to purchase insurance in this fashion. A little knowledge can be dangerous.

The federal government has mandated to all states through legislation, the standardized senior health insurance policy guidelines, which are governed and regulated by each state insurance department.

There are plans for almost every level of health. Some are designed and priced for a less than healthy individual. Others are for a person with minimal health concerns. . The whole concept of insurance is to provide protection for "unanticipated" sickness or injury, especially catastrophic expenses, which would devastate a person's net worth. The more small expenses a person is willing or able to pay (self-insure), the lower the rate. I recommend this strategy when evaluating your insurance options.

Another consideration when reviewing various insurance plans is to look at the company itself. How long has the company been selling this type of insurance? Do they have a lot of complaints filed with the local department of insurance? Are the rates stable? Does it pay claims on time? Service? Most agents talk about the rating. These ratings are as follows: A+, A, A-, B+, B, B-, C+, C, C-, or "not rated".

Do not be fooled by rating alone. It is good to have a high rating, but it is far better to have a company that has longevity, stability, innovation, service, and expertise. The problem is that some companies enter into a market and quickly leave without explanation. This does not give security to the policyholder.

The most important consideration should be a review of the profit/loss ratio for that product. This will establish stability, and longevity in the market. An insurance company with a moderate profit in a particular line of business will remain in that market. On the other hand, a company with losses will make changes and possibly even withdraw. This is information not normally available to Internet users.

Before entering into an insurance contract, the senior person, the family, and other advisors must be realistic, and a careful evaluation of the entire picture must be examined. The age, the health of the senior, the financial resources, the personality and attitude of the senior, and most importantly the desires of the senior, should all be considered.

Early planning is important, as qualification becomes increasingly more difficult as the applicant's health declines. The senior health care market is complex. I will offer some words of advice to attempt to alleviate potential pitfalls. *C hoose a well-informed, seasoned, and service oriented agent or broker to assist your decision making process. The professional can offer invaluable information, but do not be afraid to ask a lot of questions and even get a second opinion. *Do not wait until your parent or loved one is sick, or injured. Plan ahead and take the time needed to cover all the options. *C hoose an experienced insurance company. A Company that has been in the marketplace for a significant time and has maintained a balance of rates and benefits and sound risk selection with moderate rate increases over time is your best bet. *T he plan should be flexible, with a broad range of options and benefit selections to the insured. There should be no tricks, or complicated language for the coverage. An incredibly low rate is a red flag for trouble in the future. *Do not rush or be rushed by an over aggressive sales person.

This policy will not be inexpensive and will need to be read and reviewed for a clear understanding of the contents. This is one advantage to the Internet. You are allowed to read indefinitely before you act.

A long-term care program, with or without insurance coverage, will only work if the senior has input into the care selection process. If there are any questions about the accreditation of a facility please call the "Continuing Care Accreditation Commission at 202-783-7286.

WILLIAM H. PRITCHETT SR.

BIO: MR. PRITCHETT HAS BEEN INVOLVED IN THE SENIOR CARE HEALTH FIELD FOR OVER 20 YEARS. HE IS THE FORMER PRESIDENT OF GREAT REPUBLIC HEALTH COMPANY, AND IS THE FOUNDER/C.E.O OF EMPIRE HOMECARE RESOURCES, INC., A NATIONAL WEBSITE FOR SENIORS AND THE DISABLED. HE IS A GRADUATE OF THE UNIVERSITY OF WASHINGTON, AND HAS WRITTEN "CARING FOR A FAMILY MEMBER AT HOME" AND HAS PRODUCED SEVERAL HOME HEALTH CARE VIDEOS.

willprt@cs.com

Student Health Insurance

Students often wonder if they really need health insurance. It seems like a reasonable question when you are young and healthy and seemingly invincible. After all, almost everyone who knows how to access the health care system is provided with basic health care services and acute care (like emergency care) in the United States, regardless of whether or not they have health insurance. Young adults tend to use health care services less often than any other group. The odds are that a young adult will go more than 12 months without any need for health care. Even among those who need health care, the likelihood of exceeding $1000 annual healthcare expenses is very small. So it is reasonable to wonder whether a young adult really needs health insurance at all.

But the situation changes when we consider the more extensive and more costly types of health care. The ability of a patient to obtain top quality medical care for the most serious types of health care - things like transplants, extended hospital care, physical rehabilitation, and long term outpatient care - depend more on whether the patient has adequate health insurance than any other factor. A simple attack of appendicitis could easily wind up costing more than $25,000. Even an affluent family will have difficulty arranging adequate medical care without insurance coverage. Unfortunately, if you wait until you need this type of care it will be difficult or impossible to buy health insurance that covers these items.

Often the most immediate insurance concern for young people is the fact that most colleges, trade schools, internship programs, sports teams, community-sponsored travel opportunities and many other activities require health insurance as an admission requirement. Without health insurance, you do not pass "go". So there is usually no question about it - most young people with ambitions to advance their education need to have some type of health insurance.

Coverage Options
There are many types of health insurance plans available to young adults. The most popular plans are listed below.
Parent's Policy - Most students continue to be covered under a parent's policy. If this option is available, it is almost always the best option. But most health plans require that proof of full-time enrollment be provided. Be aware of the maximum age for this benefit. In many cases this coverage will expire when the student reaches age 23 (or at another age as stated in the insurance policy).

Employer Group Coverage - Most employers provide health insurance to their full time employees and pay for most of the cost of this employee benefit. This is called group health coverage. This benefit is completely under the control of the employer. Many people do not realize that there is no requirement for an employer to provide this benefit. Most group health plans require that new employees wait a few months before becoming eligible for coverage.

School-Sponsored Coverage These are usually uninsured managed care arrangements to provide care to students in the local area of the college or university.

Student Medical Policies These are privately insured major medical policies designed specifically for students. These are portable and offer coverage to the student in any location in the U.S. These plans also cover graduate students, and are available regardless of age or health. In most parts of the U.S., students can buy a high quality health insurance plan for less than $70 per month at www.medsave.com.

Short Term Medical Policies - Interim or gap insurance policies are available to cover from one to 12 months. This coverage is inexpensive and easy to obtain online in most states. The quality of the coverage is excellent except that it does not cover pre-existing conditions. These provide coverage in the U.S. only.

Individual Medical Policies - Permanent policies that you buy directly from an insurance company offer excellent coverage, strongest financial guarantees, and the most stability. These often provide worldwide coverage. But all this comes at a higher price and coverage is issued for a minimum of 12 months.

Travel Coverage / International Policies - Students planning overseas travel should purchase a separate medical insurance plan for the time that they are traveling, since most student health plans do not cover charges incurred outside of the U.S. These policies are specifically designed to pay for medical expenses and deal with the other international complications (language, currency and business issues) typically incurred while obtaining medical treatment overseas.

Terms to Know
Deductible or Co-payment - this is the portion of the bill that you pay before the insurance comes into play. These help reduce the cost of the insurance.
HMO - stands for "health maintenance organization". The HMO may pay to keep you healthy, rather than only cover problems hen things go wrong. HMOs tend to be popular among young healthy people, but criticized by people receiving more serious medical care. Private physicians tend to feel that they lose control over the quality of a pateint's care when an HMO is involved.
Indemnity plan - means that the policy reimburses you for any ordinary and necessary medical expenses. This is the least restrictive type of coverage but also the most expensive.
Managed Care - this means that the insurer has some authority to influence the type of health care you are provided. This cuts healthcare costs but may also limit your treatment.
Pre-existing condition - a medical situation that started before your insurance policy that may not be covered by the health insurance policy.
Premium - the cost of the policy, usually ranging from $25 to over $200 monthly.
Tax-deductible - reduces your taxable income and thereby reduces your total tax due at the end of the year. Most health insurance is not tax deductible by individuals.
Tax-free - the benefit provided by health insurance is usually tax-free. This means the value of the coverage received as well as any cash benefit paid as the result of a claim.
Underwritten - this means that not everyone will be accepted because acceptance is based on individual medical history. The insurance company reviews each application and selects the healthiest applicants for enrollment. Premium rates are lower for those accepted, but these plans offer no solution for people with pre-existing health conditions.

But the situation changes when we consider the more extensive and more costly types of health care. The ability of a patient to obtain top quality medical care for the most serious types of health care - things like transplants, extended hospital care, physical rehabilitation, and long term outpatient care - depend more on whether the patient has adequate health insurance than any other factor. A simple attack of appendicitis could easily wind up costing more than $25,000. Even an affluent family will have difficulty arranging adequate medical care without insurance coverage. Unfortunately, if you wait until you need this type of care it will be difficult or impossible to buy health insurance that covers these items.

Often the most immediate insurance concern for young people is the fact that most colleges, trade schools, internship programs, sports teams, community-sponsored travel opportunities and many other activities require health insurance as an admission requirement. Without health insurance, you do not pass "go". So there is usually no question about it - most young people with ambitions to advance their education need to have some type of health insurance.

Coverage Options
There are many types of health insurance plans available to young adults. The most popular plans are listed below.
Parent's Policy - Most students continue to be covered under a parent's policy. If this option is available, it is almost always the best option. But most health plans require that proof of full-time enrollment be provided. Be aware of the maximum age for this benefit. In many cases this coverage will expire when the student reaches age 23 (or at another age as stated in the insurance policy).

Employer Group Coverage - Most employers provide health insurance to their full time employees and pay for most of the cost of this employee benefit. This is called group health coverage. This benefit is completely under the control of the employer. Many people do not realize that there is no requirement for an employer to provide this benefit. Most group health plans require that new employees wait a few months before becoming eligible for coverage.

School-Sponsored Coverage These are usually uninsured managed care arrangements to provide care to students in the local area of the college or university.

Student Medical Policies These are privately insured major medical policies designed specifically for students. These are portable and offer coverage to the student in any location in the U.S. These plans also cover graduate students, and are available regardless of age or health. In most parts of the U.S., students can buy a high quality health insurance plan for less than $70 per month at www.medsave.com.

Short Term Medical Policies - Interim or gap insurance policies are available to cover from one to 12 months. This coverage is inexpensive and easy to obtain online in most states. The quality of the coverage is excellent except that it does not cover pre-existing conditions. These provide coverage in the U.S. only.

Individual Medical Policies - Permanent policies that you buy directly from an insurance company offer excellent coverage, strongest financial guarantees, and the most stability. These often provide worldwide coverage. But all this comes at a higher price and coverage is issued for a minimum of 12 months.

Travel Coverage / International Policies - Students planning overseas travel should purchase a separate medical insurance plan for the time that they are traveling, since most student health plans do not cover charges incurred outside of the U.S. These policies are specifically designed to pay for medical expenses and deal with the other international complications (language, currency and business issues) typically incurred while obtaining medical treatment overseas.

Terms to Know
Deductible or Co-payment - this is the portion of the bill that you pay before the insurance comes into play. These help reduce the cost of the insurance.
HMO - stands for "health maintenance organization". The HMO may pay to keep you healthy, rather than only cover problems hen things go wrong. HMOs tend to be popular among young healthy people, but criticized by people receiving more serious medical care. Private physicians tend to feel that they lose control over the quality of a pateint's care when an HMO is involved.
Indemnity plan - means that the policy reimburses you for any ordinary and necessary medical expenses. This is the least restrictive type of coverage but also the most expensive.
Managed Care - this means that the insurer has some authority to influence the type of health care you are provided. This cuts healthcare costs but may also limit your treatment.
Pre-existing condition - a medical situation that started before your insurance policy that may not be covered by the health insurance policy.
Premium - the cost of the policy, usually ranging from $25 to over $200 monthly.
Tax-deductible - reduces your taxable income and thereby reduces your total tax due at the end of the year. Most health insurance is not tax deductible by individuals.
Tax-free - the benefit provided by health insurance is usually tax-free. This means the value of the coverage received as well as any cash benefit paid as the result of a claim.
Underwritten - this means that not everyone will be accepted because acceptance is based on individual medical history. The insurance company reviews each application and selects the healthiest applicants for enrollment. Premium rates are lower for those accepted, but these plans offer no solution for people with pre-existing health conditions.

Tony Novak, MBA, MT is a writer and financial adviser in Narberth, PA focusing on tax and employee benefit issues. His businesses www.MedSave.com and Freedom Benefits Association provide online benefits enrollment for thousands of individuals and businesses nationwide

Health Insurance for the Self-Employed - Protecting Your Business's Greatest Asset

Health Insurance for the Self-Employed - Protecting Your Business's Greatest Asset

2002 Elena Fawkner

"I've been considering quitting my full-time job and getting a part-time job that would pay the bills [so I can start a home business] ... The one biggie my full-time job provides me now is health insurance. If I was to get a part-time job, I'd probably have to pay for my own health insurance and I know that can be expensive."

Like Jason, who sent me the above email this week, many a dissatisfied employee would chuck in their full-time J.O.B. (just over broke) for their part-time home-based business in a heartbeat if not for one thing. Employer-provided health benefits. It's a biggie, no doubt about it.

Undeniably, employer-paid or -subsidized health benefits are one of the few real perks of working for someone else. In fact, surveys have shown that, for employees (especially those with families), paid benefits are hands down the most important element of their compensation packages.

And there's no shortage of people already running their own home businesses with no health or disability coverage at all. Scary. After all, if you're dependent upon your home business as your sole source of income and you lose your health, you lose your livelihood as well.

Bottom line? If you run a home-based business you can't afford not to have health coverage of one form or another. Here's how to make it happen, whatever your circumstances.

BASIC OPTIONS FOR THE EMPLOYER OF ONE (YOU)

You have three basic options when it comes to health and disability insurance.

=> Spouse Coverage

If your spouse has health coverage from his or her employer, as a general rule, use that. It probably provides better and less expensive coverage than you could get on your own.

=> Group Health Insurance

The main advantage of group health insurance plans is that they can't turn you away because of health problems. The good news for the solo entrepreneur is that an increasing number of companies are offering group health plans for "groups" of one. This varies by state though so you'll need to do your homework to find one.

=> Individual Health Insurance

These plans are fine if you don't have any pre-existing medical conditions. (If you do, try your best to find a group plan that will cover a group of one.) They're subject to medical underwriting so your state of health will be a factor the insurance company takes into account in determining whether to accept your application.

Of course, the mere fact that you're able to get into a good plan is one thing. Doing so affordably is quite another.

REDUCING THE HIGH COST OF HEALTH INSURANCE

There are several ways of minimizing the cost of health insurance. Your tolerance for risk will determine which, if any, you are comfortable with.

=> Reduce the Level of Coverage

Do you really need to have every doctor's visit and prescription covered? If you only go to the doctor once a year for an annual examination, have no health conditions, don't need regular expensive prescription medications and are generally healthy, consider cutting out coverage for office visits and prescriptions.

=> Higher Deductible

Similarly, if you're reasonably healthy, don't visit the doctor very often and don't need to use expensive medications, consider switching to a higher deductible to save on premium costs. By increasing your deductible from $100 to $2,000, you can cut your premium payment in half.

=> Annual Premium Payments

If you can afford to do so, pay your premiums annually rather than monthly or quarterly to avoid service fees and to take advantage of prepayment discounts where available.

=> Join Associations

Just because you're going it alone in your business doesn't mean you can't take advantage of the group buying power that being a member of an association offers. Check out your local chamber of commerce, various trade and professional groups and small and home business associations for member benefits. Many offer access to discounted health insurance.

Here are a few small/home business association links to get you started (you'll need to cut and paste some of these links if they wrap to the next line):

National Association for the Self-Employed http://www.nase.org/nase_benefits/health_benefits.asp American Association of Home-Based Businesses http://www.aahbb.org/benefits.htm Home Office Association of America http://www.hoaa.com/allbenefitsnew.htm National Business Association http://www.nationalbusiness.org/NBAWEB/Directory/Internal_Pages/Member_Benefits/Health.htm

Don't forget to check out local associations in your area or associations relevant to your particular profession.

=> Shop Online

Being able to offer insurance products online means insurance companies save on broker and agent fees. Often, this translates into premium savings for policies purchased over the Internet. So, when your fingers do the walking, make sure they do so on a keyboard and not the Yellow Pages.

=> Medical Savings Accounts

Under the Health Insurance Portability and Accountability Act (HIPAA), if you're self-employed you may be eligible to use a medical savings account, or MSA.

MSAs work in conjunction with higher deductible health insurance policies to reduce premiums and allow you to use pre-tax dollars to pay for your medical expenses up to the limit of the deductible on your insurance policy.

Basically, you reduce your premium by replacing a low- deductible policy with high-deductible policy and use the premium saving to make fully tax-deductible contributions to your MSA. You can contribute up to 65% of the deductible each year into your MSA (75% for families). The money goes into a tax-deferred account or trust and you pay your medical expenses (until you reach the deductible) by drawing from the account. Once you hit the deductible, of course, the insurance policy kicks in.

If you spend less than you contributed, the surplus stays in the account and earns interest. Not only that, the funds can be invested in high-return vehicles such as mutual funds and stocks.

As the balance can be carried forward, an MSA can be used to accumulate a pretty healthy nest egg for retirement. In fact, a Journal of Financial Planning analysis calculated that if you contribute $1,500 per year into an MSA for 25 years, assuming a 12% rate of return, you'll end up with almost $1.5 million. That's assuming you don't draw from it to pay for medical costs, of course.

There are some limitations though. First, the range of deductibles is limited to $1,500 - $2,250 for individuals and $3,000 - $4,500 for a family. Second, as we saw above, you can contribute only 65% of the deductible as an individual or 75% for a family.

So, if you're an individual and you choose a policy with a $2,000 deductible, you'll be able to contribute 1,300 pre-tax dollars into an MSA each year. In other words, Uncle Sam pays for part of your health insurance/retirement fund. How fitting.

The money in the MSA can be used to pay any medical expenses incurred before the deductible is reached, as well as other eligible costs such as contact lenses and dental work. If you use the money for anything else, you must not only pay tax on the amount withdrawn, but a 15% penalty on the top. (If you're over 65 when you make the withdrawal the penalty is not applied but you'll still have to pay the tax.)

(By the way, MSAs are also available to you if you work for a business with fewer than 50 employees.)

In short then, MSAs offer a very tax-effective and potentially lucrative way to self-fund part of your health care costs while dramatically reducing your premiums. If luck is on your side and you remain healthy, by the time you reach retirement age, your MSA could well fund your retirement.

Pretty neat.

=> Self-Employed Health Insurance Deduction

Finally, the self-employed can write off 70% of their health insurance premiums in 2002. This increases to 100% in 2003. That's only so long as the total doesn't exceed the net profit from your Schedule C minus deductions for one half of the self- employment tax and Keogh, SEP and Simple contributions though.

Also, the deduction can only be claimed for months when you weren't eligible to participate in a subsidized health plan from another employer (including your spouse's employer).

Self-employed workers who qualify for both the self-employed health deduction and the itemized medical deduction can write off the other 30% this year on Schedule A. (Medical expenses are deductible on Schedule A only to the extent they exceed 7.5% of adjusted gross income.)

WHAT TO DO IF YOU'RE UNINSURABLE

The foregoing is all well and good if you're able to get health insurance in the first place. But what if you have a pre- existing condition that disqualifies you from an individual health plan and you can't get into a group plan? In other words, you can't get insurance at any price.

=> HIPAA

Although beyond the scope of this article, the Health Insurance Portability and Accountability Act (HIPAA) may offer you some protections. For more information about how HIPAA may help you obtain health insurance even if you have a pre-existing condition, visit http://www.hcfa.gov/medicaid/hipaa/content/hipsteps.asp .

=> Risk Pools

High-risk health insurance plans, also known as risk pools, are state-funded plans and are an important safety net for individuals who are denied health insurance because of a medical condition. They're available only in 29 states though.

To be eligible, you must be a resident of the state from which you seek coverage (unless there's reciprocity between that state and the state you reside in) and you must be able to prove at least one of the following:

1. that you've been rejected for similar health insurance coverage by at least one insurer; or

2. you're presently insured with a higher premium; or

3. you're presently insured with a rider or rated policy.

You will not be eligible for participation in a risk pool if:

1. you're not a resident of the state from which you seek coverage (again subject to reciprocity between states); or

2. you're eligible for Medicare or Medicaid; or

3. you've terminated previous coverage in the plan unless at least 132 months have since elapsed; or

4. you're an inmate of a public institution.

For more information on risk pools in your state, contact your state health insurance department, the national association "Communicating for Agriculture and the Self- Employed" (1-800-432-3276) or visit http://www.selfemployedcountry.org .

Coverage via the safety-net protections of the HIPAA may end up being "risk-pool" coverage.

=> Healthcare Savings Programs

Healthcare savings programs are patient advocacy programs that minimize out-of-pocket healthcare expenses.

They're not insurance policies but rather programs that allow you to access networks of healthcare providers for the same negotiated rates that large insurance companies enjoy. Savings range from 20% to 50%.

Not ideal but better than nothing. Also, since they're not insurance policies, all pre-existing conditions are accepted.

A modest monthly fee is usually required to participate. See, for example, Care Entree at http://www.careentree.com for $20 per month.

Although health insurance may seem like a luxury you just can't afford if your finances are already stretched to breaking point thanks to your home-based business, you never know what's around the corner. Quite simply, you and your business can't afford not to have health (and disability) insurance.

You are your business's greatest asset. Protect it.

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** Reprinting of this article is welcome! ** This article may be freely reproduced provided that: (1) you include the following resource box; and (2) you only mail to a 100% opt-in list.
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Elena Fawkner is editor of A Home-Based Business Online ... practical business ideas, opportunities and solutions for the work-from-home entrepreneur. http://www.ahbbo.com
Also, visit Elena's newest site, Web Work From Home http://www.web-work-from-home.com

Elena Fawkner is editor of A Home-Based Business Online ... practical business ideas, opportunities and solutions for the work-from-home entrepreneur. http://www.ahbbo.com
Also, visit Elena's newest site, Web Work From Home http://www.web-work-from-home.com

Health Insurance for Seniors on the Web

Health Insurance For
Seniors On The Net

When a good friend of mine inquired where he could obtain information about medical insurance for his out-of-state, elderly mother, I told him to try the Internet.

He reported back to me about a week later, in desperation: "I am giving up, I am too confused." He had taken on an overwhelming project with his widowed mother, living in another state. As the only child, and following the sudden death of his father, it was his responsibility to care for his mother.

In this world of technology, the family unit is often living in different geographical areas and the family members are usually quite involved with their own lives, careers, and families. In addition, when both parents are alive, often one or both parents are quite independent and do not require a lot of assistance. As time goes on things, of course, change, and sometimes change very suddenly. There can be a crisis, with regard to the health care needs of one or both aging parents.

With our baby boomers facing this problem in ever increasing numbers, and with the information highway in full bloom, there is a definite need for planning.

Protecting your parent's assets and health is a huge and daunting undertaking, which requires a tremendous amount of education and practical application. Our seniors face many diverse responsibilities upon reaching age 65. To name just a few: Estate planning, taxation, Medicare, social security, wills, insurance, and various other legal and financial matters. All of these different areas require expertise from accountants, lawyers, estate planners, insurance agents, home brokers, financial advisors, and others.

The Internet is a good starting point for most people to find resources for questions and solutions for your problems. There is, however, no replacement for good solid intelligent advice from an expert.

Twenty years ago, insurance for elders was sold by "senior insurance specialists", with just a handful of companies in each state. The programs were most often Medi-gap or Medicare supplemental policies, which covered the expenses not covered by Medicare, including hospital and doctor deductibles, durable medical devices, and non-approved Medicare costs. Ironically these specialists did not sell a lot of nursing care policies, even though Medicare paid a national average of less than 2% of these expenses. With the advent of "financial and estate planning" and more insurance companies entering this market, a more broad and diversified product line became available to agents, brokers, planners, and seniors.

Part of this new diversification was the "home health care plan", sold by itself, and in conjunction with senior health insurance products. The appeal of the "home health care policy" was that a senior could stay at home and still receive medical and custodial benefits, allowing a person to recuperate in the comfort of their own home.

This was the answer to a huge problem. The last place an older person wanted to go was a "retirement home", or "rest home", or, God forbid, the "nursing home." It appeared that seniors could now rely on this new innovation without worry of having to move out of their home environment in the event of a health problem.

As with most things," if it is too good to be true".... The home health care policy is no exception. The problem is, there is not enough coverage for a lengthy illness or recuperation time. The fact is, the new trend is toward an "all in one" type facility, allowing for a variety of levels of care all in one location. In other words a senior could start off with little or no health care concerns in an independent, less expensive area, and then go to an assisted living, or nursing care facility, all within the same compound.

A "nursing home" requires a nurse on the premises 24 hours per day, assisted living is just eight hours. The advantages to this are financial. The patient or senior is only charged according to the care level required during the time he or she is admitted to that facility. Another benefit is it alleviates a lot of planning because the care is delivered, as it is needed. The medical attention is available to all residents regardless of their current health.

Some people are offered a lifetime package, which covers their care for the rest of their life, regardless of their current age. It also allows for social outlets to an otherwise somewhat isolated group. On-line shopping services have become a huge business. It is definitely here to stay and many insurance policies are purchased from Internet quotes and on-line applications.

There are literally hundreds of thousands of insurance agents and brokers advertising on the Internet. Most of them will provide instant on-line quotes and even applications for the potential insured. I highly discourage a layperson to purchase insurance in this fashion. A little knowledge can be dangerous.

The federal government has mandated to all states through legislation, the standardized senior health insurance policy guidelines, which are governed and regulated by each state insurance department.

There are plans for almost every level of health. Some are designed and priced for a less than healthy individual. Others are for a person with minimal health concerns. . The whole concept of insurance is to provide protection for "unanticipated" sickness or injury, especially catastrophic expenses, which would devastate a person's net worth. The more small expenses a person is willing or able to pay (self-insure), the lower the rate. I recommend this strategy when evaluating your insurance options.

Another consideration when reviewing various insurance plans is to look at the company itself. How long has the company been selling this type of insurance? Do they have a lot of complaints filed with the local department of insurance? Are the rates stable? Does it pay claims on time? Service? Most agents talk about the rating. These ratings are as follows: A+, A, A-, B+, B, B-, C+, C, C-, or "not rated".

Do not be fooled by rating alone. It is good to have a high rating, but it is far better to have a company that has longevity, stability, innovation, service, and expertise. The problem is that some companies enter into a market and quickly leave without explanation. This does not give security to the policyholder.

The most important consideration should be a review of the profit/loss ratio for that product. This will establish stability, and longevity in the market. An insurance company with a moderate profit in a particular line of business will remain in that market. On the other hand, a company with losses will make changes and possibly even withdraw. This is information not normally available to Internet users.

Before entering into an insurance contract, the senior person, the family, and other advisors must be realistic, and a careful evaluation of the entire picture must be examined. The age, the health of the senior, the financial resources, the personality and attitude of the senior, and most importantly the desires of the senior, should all be considered.

Early planning is important, as qualification becomes increasingly more difficult as the applicant's health declines. The senior health care market is complex. I will offer some words of advice to attempt to alleviate potential pitfalls. *Choose a well-informed, seasoned, and service oriented agent or broker to assist your decision making process. The professional can offer invaluable information, but do not be afraid to ask a lot of questions and even get a second opinion. *Do not wait until your parent or loved one is sick, or injured. Plan ahead and take the time needed to cover all the options. *Choose an experienced insurance company. A Company that has been in the marketplace for a significant time and has maintained a balance of rates and benefits and sound risk selection with moderate rate increases over time is your best bet. *The plan should be flexible, with a broad range of options and benefit selections to the insured. There should be no tricks, or complicated language for the coverage. An incredibly low rate is a red flag for trouble in the future. *Do not rush or be rushed by an over aggressive sales person.

This policy will not be inexpensive and will need to be read and reviewed for a clear understanding of the contents. This is one advantage to the Internet. You are allowed to read indefinitely before you act.

A long-term care program, with or without insurance coverage, will only work if the senior has input into the care selection process. If there are any questions about the accreditation of a facility please call the "Continuing Care Accreditation Commission at 202-783-7286.

As I have mentioned in my article, the best way to avoid potential problems are to plan ahead. I have found a company, that I highly reccommend as they are professional senior care specialist's and offer sound, practicle, individualized, advice
for caregivers, family members, seniors, and guardians. They will advise on tax, legal, financial, health care, and other family issues, and are available nationwide.

author: William H. Pritchett Jr.

Mr. Pritchett is a certified estate planner with over 25 years of experience in long term care, medicare, and custodial care health insurance products. Mr. Pritchett was a pioneer in this market and developed the first "Home Health Care" insurance plan available in the United States in 1983. He has written many articles, is a national public speaker on the subject and sits on the board of directors for several large corporations.

Will HIPAA Sabotage Your Estate Plan

You may have recently noticed that your doctor, other health care providers and pharmacy now ask you to sign a receipt for their "Notice of Privacy Practices".

The reason for this is a new law - - one intended to protect your personal information from identity theft or public disclosure - - which, unfortunately, also dramatically impairs your estate plan in several unforeseen and unintended ways.

The Health Insurance Portability and Accountability Act ("HIPAA") was passed by Congress to provide a secure way for health information to be passed from one health provider to another, or from health providers to insurance companies and to individuals (including the person whose information is involved).

HIPAA strictly limits the disclosure of your medical information by virtually every physician, dentist, psychiatrist, nurse, other health care provider and pharmacist, and imposes fines of up to $250,000 as well as jail time for up to 10 years, in the event any health information is wrongfully disclosed.

Why HIPAA Affects Your Estate Plan

Statistically, there?s better than a 50% chance you?ll someday suffer a serious accident or illness and become unable to handle your financial and medical decisions. In that event, your estate plan documents provide for a successor to take over for you. Your Living Trust and/or your Durable Power of Attorney for Property ("Estate and Personal Planning Uses") take care of your financial decisions. Your "Durable Power of Attorney for Health Care takes care of your health care and treatment decisions.

Your successor decision makers named in your Living Trust or Power of Attorney cannot step in and make decisions for you unless they first have knowledge of your inability to make decisions yourself. If your successor can?t get a confirmation of your condition, he or she may instead have to go to court to declare you "incompetent" - - in what can be an expensive, lengthy and embarrassing conservatorship proceeding. Furthermore, your health care decision makers will urgently need access to your medical information in order to make critical health decisions for you!

Clearly, you would prefer for your successors to have immediate, hassle-free access to your medical records so they may obtain information from your doctor regarding your situation in order to handle your important matters right away. Unfortunately, HIPAA can prevent your successors from getting the medical records and doctor letters they need and force them to go into court!

Sorting out this new law and figuring out how to respond to it has been a huge process for health providers and for us. That?s why you haven?t heard from us, even though the new law became effective in April of 2003. Over the past two years, we have attended numerous continuing education programs, and spent a lot of time doing legal research! Fortunately, the health care providers are only now starting to seriously implement HIPAA, so we haven?t run into any significant problem in getting a client?s medical information so far ? but it will be a real problem in the immediate future!

Isn?t an Authorization to Release Medical

Information Sufficient?

Our policy has always been to thoroughly research new laws and develop practical solutions we feel confident are going to work, rather than to immediately jump in and recommend estate plan changes. For example, we have already seen numerous estate planners advise their clients to merely sign an ?Authorization to Release Medical Information? and tell their clients that?s all they need to take care of the problem ? but that?s wrong!

First of all, HIPAA does not provide one standard ?form? for such authorization. And relying on an authorization form provided by a specific health care provider, a government authority or agency, or even one attorney speaking at a continuing education program may be a big mistake! We have critically examined the exact wording of the law, and almost all forms we?ve see are inadequate!

Many planners creating HIPAA authorizations fail to include certain required disclosures to the signing party and fail to refer to specific terminology of the Act, thereby threatening the validity and acceptance of the authorization by third parties holding your medical information. Worse yet, many authorizations are overly broad and may give others access to your medical information when it?s not yet necessary or appropriate!

Most importantly, very few planners have considered the impact of HIPAA on your other estate plan documents. Your Living Trust, Durable Power of Attorney for Property and Advance Health Care Directive all should be updated to include provisions that will permit your successor trustee or agent to sign a valid authorization on your behalf if you become disabled and your authorization is invalid due to changes in the law, or because it?s too old or simple can?t be located.

These documents also need to provide a set of alternate or back-up procedures if your authorization or the one signed by your successor trustee or agent can?t be properly implemented, even thought it may be valid. For example, your doctor might refuse to honor your authorization because he may question your legal capacity at the time it was signed or he narrowly interprets the kind of information permitted to be released and decides to withhold some important item. Or, because he?s scared off by all the severe penalties, he may refuse to write a letter stating you are incapacitated. If you don?t have a back-up procedure in your estate plan documents to cover these kinds of events, then you may be forced into a court conservatorship!

As if all of this isn?t complicated enough, we also have to consider what may happen if you?re disabled or deceased and one of your successor trustees or agents then becomes incapacitated. How will your documents permit the next named successor to step in immediately if they don?t have a proper Authorization to Release Medical Information from the first successor who can no longer act? We have come up with a practical mechanism to deal with this issue so, again, you can avoid going to court.

You must get all of your documents upgraded, so that your estate plan continues to function smoothly, as intended, should your or one of your successor trustees or agents ever become incapacitated because of illness or accident. This package includes an Authorization to Release Medical Information, an Amendment to your Living Trust for those of you who have a Revocable Living Trust estate plan, a new Power of Attorney for Property and a new Advance Health Care Directive. If you have a Will Package only, you need to have it updated also with a new Authorization to Release Medical Information, Power or Attorney for Property and Health Care Power of Attorney.

Carolina Senior.Com offers South Carolina baby boomers, seniors and retirees, retirement information on investing, financial protection, legal protection, long term care options and more. Perry Fields is a writer for Carolina Senior.com and focuses her writing on South Carolina retirement information.

HIPAA Compliance

All entities that process health care data must comply with HIPAA. Such entities mainly include healthcare providers and insurance companies. According to the provisions made under this Act, any entity that transmits or stores the private health care information of an individual must comply with certain security regulations.

To ensure smooth compliance with HIPAA, the Department of Health and Human Services (HHS) has the authority to decide which particular codes should be used to identify administrative and medical expenses. This department, as a part of the compliance strategy, can create a safe identification system for clients, insurance carriers and health-care providers. This ID system is a national system.

HHS also has the authority to implement any other procedure necessary to secure private or personal information. Various organizations comply with HIPAA within certain prescribed time limits. Some of them are given 24 months, and those going for small plans can have around 36 months.

Any employer acting as a health care provider must comply with standards set up by HIPAA. There are penalties for non-compliance of HIPAA standards. The rules and regulations for various procedures set up under HIPAA may not be that easy to understand, for an individual. There are several organizations which can help you to comply with HIPAA standards. The help is available online as well as offline. A number of training courses are available for doctors, nurses and anyone else who is interested in learning easy and simple compliance procedures related to HIPAA. These training courses and programs are useful, especially for administrators, physicians and practice managers. Such programs are available online also. A certificate is provided after you complete the program.



HIPAA provides detailed information on HIPAA, HIPAA Compliance, HIPAA Laws, HIPAA Software and more. HIPAA is affliated with Electronic Medical Record Systems.

HIPAA and the Internet: Requirements for Intranet Collaboration Software

Sharing private health information over the internet can be a risky business. Unfortunately, as people become accustomed to doing most if not all of their personal business online, the demand for accessing this information online will grow to the point that health care providers will have no choice but to either provide access to this private health information or lose their customers.

The Health Insurance Portability and Accountability Act (HIPAA) was enacted to assure the confidentiality of patient information. This requires that health care providers employ stringent measures to assure that information shared on the internet is protected from unauthorized access.

The HIPAA Act requires health-providing entities to:

 

 

 

• Assign responsibility for security to a person or organization.

   

   

• Assess security risks and determine the major threats to the security and privacy of protected health information.

   

   

• Establish a program to address physical security, personnel security, technical security controls, and security incident response and disaster recovery.

   

   

• Certify the effectiveness of security controls.

   

   

• Develop policies, procedures and guidelines for use of personal computing devices (workstations, laptops, hand-held devices), and for ensuring mechanisms are in place that allow, restrict and terminate access (access control lists, user accounts, etc.) appropriate to an individual's status, change of status or termination.

   

   

• Implement access controls that may include encryption, context-based access, role-based access, or user-based access; audit control mechanisms, data authentication, and entity authentication

 

This law has serious implications for organizations that allow unauthorized access resulting in a breach in confidentiality.

Security is the key

Since the HIPAA law provides for both civil and criminal penalties for violations, data and access security is of the utmost importance. To assure HIPAA compliance, online document management must include a number of security features:

 

 

 

• Secure web server – a server running secure socket layers is the minimum needed.

   

   

• Encrypted database – all data must be encrypted. Software is available that will encrypted all data sent between two computer over the internet.

   

   

• Secure access control -- in addition to a traditional user id and password, it may be a good idea to use a strong password or smart card as additional security.

   

   

• Session timeout – this assures that confidential data is not left on an unattended screen.

   

   

• Server monitoring – the secure web server needs to be strictly monitored to detect break-in attempts.

   

   

• Regular security audits – regular audits are required to make sure all security precautions are working properly.

   

   

• Personnel – system maintenance should be in the hands of qualified personnel familiar with HIPPA requiremen

  Rick Mosenkis is the President and CEO of Trichys, the creators of WorkZone hosted intranet and extranet software, including a higher-security version for HIPAA compliance. With customers around the world, among large and small companies, Trichys develops easy-to-use web-based software that allows non-technical business professionals to leverage the power of the Internet without IT support.