A nationwide shortage of meningitis vaccine is causing concern among health care professionals across Metro Detroit with the start of the new school year just weeks away.
Physicians need the vaccine to immunize those at highest risk -- students entering high school and freshmen entering college.
The U.S. Centers for Disease Control and Prevention says the disease is rare, but can be deadly. Consequently, the vaccine is in demand.
That is why Alex Bartlett's mom made sure he received his vaccine last week. He will be entering Western Michigan University as a freshman in the fall.
"I had a best friend in elementary school that got meningitis when she got a little older," said Bartlett, 18, of Novi.
"She used to be very active in sports --better than the boys -- but when I went to see her in the hospital, she was on a respirator and looked so weak. So I knew what the disease could do. That's why I'm even telling my friends to get the vaccine."
The manufacturer of the vaccine, Sanofi Pasteur, of Swiftwater, Pa., cannot keep up with demand.
"One reason for the shortage is that we can only make so much at a time, and everybody wants it in August before kids go back to school," said Donna Cary, a spokeswoman for Sanofi Pasteur. "And the new vaccine, Menactra, was just approved in 2005, but we're actually shipping more than we did last year."
Doctors say the new vaccine is better, because it lasts eight years or more. The older vaccine, Menomune, while still available, lasts between three to five years.
However, Cary said, the manufacturer is limiting distribution of the new vaccine because of the shortage.
"They can't order more than 20 doses every 30 days," said Cary.
The disease, bacterial meningitis, is an inflammation of the lining around the brain and spinal cord, and although rare, can lead to the amputation of extremities, or, in the worst cases, death. College freshmen living in dorms are six times more likely to contract the disease.
But physicians caution against panic. Metro Detroit is experiencing a spotty shortage. Some providers -- county health departments and the Visiting Nurse Association -- have sufficient supplies. And local hospitals have enough for their patients who may need it before surgeries, including the removal of a spleen.
But the Michigan Department of Community Health says it could use more.
Some private physicians don't have any vaccine.
Dr. Sander Lipman, a pediatrician at the Center for Pediatrics and Adolescent Medicine in Troy, wishes he could get even a single dose.
"I don't have any vaccine, and we've got long waiting lists," said Lipman. "We were told we would get it in batches of 20, but we're a big practice and 20 won't last very long.
"I've been doing this for 27 years, and this is the first time I'm sending students off to college without being immunized. I'm very frustrated."
To address the shortage, the CDC is asking doctors not to immunize 11 and 12-year-olds.
"By deferring the vaccine from 11 and 12 year olds, we will save the supply for those who are older and at higher risk," said Curtis Allen, spokesman for the CDC.
Saturday, July 29, 2006
Friday, July 28, 2006
World Health Insurance Strong in Michigan
World Insurance has been in business for over 100 years providing quality healthcare policies to its members. The company prides itself in providing customizable, affordable products. World Insurance is committed to high ethical standards and quality service.
World is a preferred Michigan health insurance provider with a long history of stabilty, and financial strength behind the company.Visit http://www.medequote.net/ to get a quote on World Insurance products.
World Insurance Products:
World Insurance offers several healthcare insurance products with different deductibles to meet the needs of families:
WorldCare Flex Advantage Major Medical covers a comprehensive range of medical procedures and hospitalization.
WorldCare Flex Advantage Limited covers hospital and surgical expenses.
WorldCare Value Advantage offers affordable healthcare coverage with a broad overview of benefits.
Short Term Major Medical enables people to have healthcare insurance for a short period of time. This is the perfect type of healthcare plan for those between jobs or students.
HDHP/HD Advantage is offered with the choice of several different deductibles, is a high deductible plan that allows members to use pre-tax dollars to pay approved medical expenses. This might allow members to save money on their income taxes.
World Insurance also offers a choice of dental plans to compliment its major medical policies.
For more information visit www.medequote.net
World is a preferred Michigan health insurance provider with a long history of stabilty, and financial strength behind the company.Visit http://www.medequote.net/ to get a quote on World Insurance products.
World Insurance Products:
World Insurance offers several healthcare insurance products with different deductibles to meet the needs of families:
WorldCare Flex Advantage Major Medical covers a comprehensive range of medical procedures and hospitalization.
WorldCare Flex Advantage Limited covers hospital and surgical expenses.
WorldCare Value Advantage offers affordable healthcare coverage with a broad overview of benefits.
Short Term Major Medical enables people to have healthcare insurance for a short period of time. This is the perfect type of healthcare plan for those between jobs or students.
HDHP/HD Advantage is offered with the choice of several different deductibles, is a high deductible plan that allows members to use pre-tax dollars to pay approved medical expenses. This might allow members to save money on their income taxes.
World Insurance also offers a choice of dental plans to compliment its major medical policies.
For more information visit www.medequote.net
Thursday, July 27, 2006
Michigan HSA's by Assurant
With Assurant Health, you'll get health insurance the way you want it with:
Up to an $8 million lifetime benefit maximum
Worldwide coverage, 24 hours-a-day
Your choice of doctors and hospitals from extensive networks
No referrals necessary to see a specialist
The Option to add a Health Savings Account
12 & 24 Month rate guarantees
Health Savings Account - The newest concept in the health insurance market will make health insurance more affordable by allowing consumers to save money in a tax-free account to pay for health care costs. Individuals with self-only policies can make an HSA pre-tax annual contribution of up to $2,700 and families can make an annual contribution of up to $5,450 into a HSA account in 2006. Learn More about the Assurant Health One Deductible HSA plan by visiting www.medequote.net
With a One Deductible Health Insurance Plan and a Health Savings Account (HSA), you get more than complete major medical coverage - you get potential premium savings and tax advantages* that can translate into extra money in your pocket.
Invest those extra funds in your HSA, and they're tax-deductible. Let your funds gain interest, and it's tax deferred. Withdraw the funds to pay for qualified expenses (like medical expenses, eyeglasses, braces, long-term care insurance premiums), and they're tax-free.
Leave your funds in your HSA and it works like an IRA. Explore www.medequote.net to see the many benefits of an HSA, and learn how easy it is to start and maintain this unique tax-favored account.
Michigan residents looking for an HSA need to consider Assurant health.
Up to an $8 million lifetime benefit maximum
Worldwide coverage, 24 hours-a-day
Your choice of doctors and hospitals from extensive networks
No referrals necessary to see a specialist
The Option to add a Health Savings Account
12 & 24 Month rate guarantees
Health Savings Account - The newest concept in the health insurance market will make health insurance more affordable by allowing consumers to save money in a tax-free account to pay for health care costs. Individuals with self-only policies can make an HSA pre-tax annual contribution of up to $2,700 and families can make an annual contribution of up to $5,450 into a HSA account in 2006. Learn More about the Assurant Health One Deductible HSA plan by visiting www.medequote.net
With a One Deductible Health Insurance Plan and a Health Savings Account (HSA), you get more than complete major medical coverage - you get potential premium savings and tax advantages* that can translate into extra money in your pocket.
Invest those extra funds in your HSA, and they're tax-deductible. Let your funds gain interest, and it's tax deferred. Withdraw the funds to pay for qualified expenses (like medical expenses, eyeglasses, braces, long-term care insurance premiums), and they're tax-free.
Leave your funds in your HSA and it works like an IRA. Explore www.medequote.net to see the many benefits of an HSA, and learn how easy it is to start and maintain this unique tax-favored account.
Michigan residents looking for an HSA need to consider Assurant health.
Saturday, July 22, 2006
Individual plans step up in Michigan
If employer-sponsored health benefits go the way of the Model T, the big managed care companies in the Detroit market intend to be ready.
In June, Health Alliance Plan made its first foray into the individual policy market when it launched its new Solo product line. Just two months earlier, the market leader, Blue Cross Blue Shield of Michigan, began advertising to woo individual consumers and asking its agents to sell its Individual Care Blue offering.
"The individual segment is one of the new areas we'll be focusing on," says Joan Budden, a Michigan Blues vice president.
The moves into the individual marketplace come as Detroit's biggest health insurance customers — the Big Three automakers — careen into serious financial problems blamed, in part, on the high cost of health care. Trying to throw their situation into reverse, car manufacturers have announced big layoffs and plans to eliminate health benefits for some retirees — leaving thousands of people to fend for themselves for health care coverage.
The upheaval is dramatic because of the sheer size of the automobile companies, but it mirrors the trend across the country. The percentage of U.S. companies providing health coverage for their workers skidded from 69 percent in 2000 to 60 percent in 2005, according to Kaiser Family Foundation's annual survey of employer-sponsored benefits. Meanwhile, the percentage of U.S. employees covered by health insurance offered by their own employers fell from 63 percent to 60 percent during that five-year period.
That explains why Sandy Kirchenberg, a broker at Diversified Insurance Services in Waukesha, Wis., describes the current demand for individual insurance policies as "huge."
"I think in the next couple of years the trend of individual policies will go up and up," she says.
Health plan officials agree. Dennis Sirosky, senior vice president for product and information technology at Health Alliance Plan, believes the individual market is one of very few segments of the health insurance industry that will grow in the next 5 to 10 years.
But the growth in that segment may be substantial. Tod Zacharias, president of HumanaOne, the individual policy unit of Humana, estimates 18 million Americans are covered by individual policies today, a number that will grow by 5 percent to 8 percent a year for the foreseeable future.
"By 2010, there might be 22 million to 24 million people covered individually," he says. "That is relatively strong growth in the individually insured [market] versus what one would expect to see in the small and large group insured market."
Responding to trends
At Blue Cross Blue Shield of Michigan, Budden earlier this year was assigned to a newly created position — vice president for the non-group market — to respond to several trends that are expected to fuel demand for individual policies. In addition to escalating health care costs and the increasing number of small businesses that no longer insure their workers, she cites the broad shift away from an economy based on manufacturing to one dominated by service industries, where part-time or contract labor is common and employer-sponsored coverage is often nowhere to be seen.
Kirchenberg sees another trend among the small companies that she serves: employees who are opting out of employer-sponsored coverage in search of lower premiums.
"Employees are fed up with it," she says. "They're tired of the high-deductible programs they're being offered and [the fact that] they have to pay more contribution to premiums. A lot of them feel they have more control by going to the individual market."
And, indeed, the individual health insurance market offers more choices than ever before. Whereas the individual market was considered monolithic in the past, today's health insurers see several segments of the market with distinctly different needs and preferences.
HAP's Sirosky reels off a list of selling opportunities for individual policies: recent college graduates, young families, retirees too young for Medicare, self-employed workers, people transitioning between jobs, and the list goes on. Healthy young people who feel invincible, he says, may only be willing to buy insurance if a low premium offers protection against catastrophe, while early retirees might prefer a richer benefit with low out-of-pocket expenses.
Customization
That's why the Solo product line allows individuals to select the combination of benefit and premium levels that fits their needs and priorities. In other words, this is not your grandfather's individual health policy.
"We've got 18 different benefit packages that we can offer in the individual market," Sirosky says. The policy even covers some preventive services outside the deductible.
"Our heritage is as a managed care plan and we have infused many of those concepts into these plans," Sirosky says. "So even though there may be copayments and deductibles, you'll still have preventive services covered in the plan."
Other health plans share HAP's assessment of the diversity within the individual market, but are using different strategies to address it. WellPoint, for example, introduced Tonik, a low-premium plan aimed at young adults between ages 19 and 29, in California in 2005. The least expensive Tonik plan — the Thrill Seeker — carries a $69 monthly premium and $5,000 deductible. Already in Colorado and Nevada, Tonik will enter other markets this year.
"It is really marketed to those who could afford health insurance but choose not to buy it," says WellPoint spokesman Jim Kappel.
That is a big group: More than 30 percent of Americans in that age range did not have health coverage in 2003, making it the largest and fastest-growing segment of the uninsured population, according to the Commonwealth Fund.
In the Midwest, WellPoint used a different tactic when, earlier this year, its Anthem Blue Cross Blue Shield subsidiaries in Ohio and Indiana introduced Blue Value Access Plan for individuals. With deductibles ranging from $2,000 to $10,000, that plan is designed to cover the most commonly used health care services, such as hospitalization and surgery and certain preventive and diagnostic services.
HumanaOne, meanwhile, wants its individual offerings to look familiar to people who are accustomed to employer-sponsored benefits. The PPO-based plan, with deductibles from $500 to $5,000, includes prescription drug coverage and, at the buyer's option, can include a rider that allows physician visits for a copayment.
"It's a type of a plan that's comprehensive, like folks that would have been covered in a group plan would have had," Zacharias says.
Whether the individual policy market is simply a niche play for the health plans flocking to it remains to be seen. Kaiser Family Foundation forecast that employer-sponsoredbenefits will continue to deteriorate, and some health plan officials think they may be developing the future of health care insurance.
"No one has a crystal ball," HAP's Sirosky says. "But based on what we can see for the foreseeable future, maybe the next 18 to 36 months, until we get some sort of national health care coverage and as long as employers migrate away from defined-benefit plans, this would be more than a niche. This could become the norm."
Tonik health plans can be found at www.tonikhealthquotes.com
UniCare Sound health plans can be found at www.unicaresoundplans.com
In June, Health Alliance Plan made its first foray into the individual policy market when it launched its new Solo product line. Just two months earlier, the market leader, Blue Cross Blue Shield of Michigan, began advertising to woo individual consumers and asking its agents to sell its Individual Care Blue offering.
"The individual segment is one of the new areas we'll be focusing on," says Joan Budden, a Michigan Blues vice president.
The moves into the individual marketplace come as Detroit's biggest health insurance customers — the Big Three automakers — careen into serious financial problems blamed, in part, on the high cost of health care. Trying to throw their situation into reverse, car manufacturers have announced big layoffs and plans to eliminate health benefits for some retirees — leaving thousands of people to fend for themselves for health care coverage.
The upheaval is dramatic because of the sheer size of the automobile companies, but it mirrors the trend across the country. The percentage of U.S. companies providing health coverage for their workers skidded from 69 percent in 2000 to 60 percent in 2005, according to Kaiser Family Foundation's annual survey of employer-sponsored benefits. Meanwhile, the percentage of U.S. employees covered by health insurance offered by their own employers fell from 63 percent to 60 percent during that five-year period.
That explains why Sandy Kirchenberg, a broker at Diversified Insurance Services in Waukesha, Wis., describes the current demand for individual insurance policies as "huge."
"I think in the next couple of years the trend of individual policies will go up and up," she says.
Health plan officials agree. Dennis Sirosky, senior vice president for product and information technology at Health Alliance Plan, believes the individual market is one of very few segments of the health insurance industry that will grow in the next 5 to 10 years.
But the growth in that segment may be substantial. Tod Zacharias, president of HumanaOne, the individual policy unit of Humana, estimates 18 million Americans are covered by individual policies today, a number that will grow by 5 percent to 8 percent a year for the foreseeable future.
"By 2010, there might be 22 million to 24 million people covered individually," he says. "That is relatively strong growth in the individually insured [market] versus what one would expect to see in the small and large group insured market."
Responding to trends
At Blue Cross Blue Shield of Michigan, Budden earlier this year was assigned to a newly created position — vice president for the non-group market — to respond to several trends that are expected to fuel demand for individual policies. In addition to escalating health care costs and the increasing number of small businesses that no longer insure their workers, she cites the broad shift away from an economy based on manufacturing to one dominated by service industries, where part-time or contract labor is common and employer-sponsored coverage is often nowhere to be seen.
Kirchenberg sees another trend among the small companies that she serves: employees who are opting out of employer-sponsored coverage in search of lower premiums.
"Employees are fed up with it," she says. "They're tired of the high-deductible programs they're being offered and [the fact that] they have to pay more contribution to premiums. A lot of them feel they have more control by going to the individual market."
And, indeed, the individual health insurance market offers more choices than ever before. Whereas the individual market was considered monolithic in the past, today's health insurers see several segments of the market with distinctly different needs and preferences.
HAP's Sirosky reels off a list of selling opportunities for individual policies: recent college graduates, young families, retirees too young for Medicare, self-employed workers, people transitioning between jobs, and the list goes on. Healthy young people who feel invincible, he says, may only be willing to buy insurance if a low premium offers protection against catastrophe, while early retirees might prefer a richer benefit with low out-of-pocket expenses.
Customization
That's why the Solo product line allows individuals to select the combination of benefit and premium levels that fits their needs and priorities. In other words, this is not your grandfather's individual health policy.
"We've got 18 different benefit packages that we can offer in the individual market," Sirosky says. The policy even covers some preventive services outside the deductible.
"Our heritage is as a managed care plan and we have infused many of those concepts into these plans," Sirosky says. "So even though there may be copayments and deductibles, you'll still have preventive services covered in the plan."
Other health plans share HAP's assessment of the diversity within the individual market, but are using different strategies to address it. WellPoint, for example, introduced Tonik, a low-premium plan aimed at young adults between ages 19 and 29, in California in 2005. The least expensive Tonik plan — the Thrill Seeker — carries a $69 monthly premium and $5,000 deductible. Already in Colorado and Nevada, Tonik will enter other markets this year.
"It is really marketed to those who could afford health insurance but choose not to buy it," says WellPoint spokesman Jim Kappel.
That is a big group: More than 30 percent of Americans in that age range did not have health coverage in 2003, making it the largest and fastest-growing segment of the uninsured population, according to the Commonwealth Fund.
In the Midwest, WellPoint used a different tactic when, earlier this year, its Anthem Blue Cross Blue Shield subsidiaries in Ohio and Indiana introduced Blue Value Access Plan for individuals. With deductibles ranging from $2,000 to $10,000, that plan is designed to cover the most commonly used health care services, such as hospitalization and surgery and certain preventive and diagnostic services.
HumanaOne, meanwhile, wants its individual offerings to look familiar to people who are accustomed to employer-sponsored benefits. The PPO-based plan, with deductibles from $500 to $5,000, includes prescription drug coverage and, at the buyer's option, can include a rider that allows physician visits for a copayment.
"It's a type of a plan that's comprehensive, like folks that would have been covered in a group plan would have had," Zacharias says.
Whether the individual policy market is simply a niche play for the health plans flocking to it remains to be seen. Kaiser Family Foundation forecast that employer-sponsoredbenefits will continue to deteriorate, and some health plan officials think they may be developing the future of health care insurance.
"No one has a crystal ball," HAP's Sirosky says. "But based on what we can see for the foreseeable future, maybe the next 18 to 36 months, until we get some sort of national health care coverage and as long as employers migrate away from defined-benefit plans, this would be more than a niche. This could become the norm."
Tonik health plans can be found at www.tonikhealthquotes.com
UniCare Sound health plans can be found at www.unicaresoundplans.com
CVS Drug Stores drop Midwest Health Plan Prescription Service
More than 55,000 Medicaid recipients in Michigan soon won't be able to fill their prescriptions at CVS drug stores.
CVS announced Monday it would stop filling prescriptions from Midwest Health Plan starting Aug. 16, because the drug store chain was unable to reach an agreement with the insurer over reimbursement rates.
The dispute comes less than a month after Walgreen Co. announced it would no longer accept prescriptions from the customers of the Dearborn-based insurance carrier.
"We tried really hard to reach a fair reimbursement rate," said Allen Kessler, Midwest vice president and chief financial officer. Midwest offered to pay more than the traditional Medicaid rate, but CVS refused the deal, he said.
CVS, with 200 locations in Metro Detroit, said Midwest's offer was unfair.
"We regret any disruption this may cause, but we cannot sacrifice the quality of services to meet unreasonably low reimbursement rates," CVS spokesman Mike DeAngelis said.
This is the second time this year CVS has cut off an insurer because of dispute over reimbursement rates. The chain also no longer accepts M-CARE, the University of Michigan-managed insurer covering more than 180,000 statewide.
www.medequote.com
www.medequote.net
CVS announced Monday it would stop filling prescriptions from Midwest Health Plan starting Aug. 16, because the drug store chain was unable to reach an agreement with the insurer over reimbursement rates.
The dispute comes less than a month after Walgreen Co. announced it would no longer accept prescriptions from the customers of the Dearborn-based insurance carrier.
"We tried really hard to reach a fair reimbursement rate," said Allen Kessler, Midwest vice president and chief financial officer. Midwest offered to pay more than the traditional Medicaid rate, but CVS refused the deal, he said.
CVS, with 200 locations in Metro Detroit, said Midwest's offer was unfair.
"We regret any disruption this may cause, but we cannot sacrifice the quality of services to meet unreasonably low reimbursement rates," CVS spokesman Mike DeAngelis said.
This is the second time this year CVS has cut off an insurer because of dispute over reimbursement rates. The chain also no longer accepts M-CARE, the University of Michigan-managed insurer covering more than 180,000 statewide.
www.medequote.com
www.medequote.net
Monday, July 17, 2006
BCBSMI HMO to give healthy discounts
A Blue Cross health maintenance organization says it will offer lower-cost insurance to people who refrain from smoking, maintain a proper weight and exercise.
The discounts will be available starting Oct. 1 from Blue Care Network of Michigan, affiliated with Blue Cross Blue Shield of Michigan.
The new coverage plan is called Healthy Blue Living and costs employers about 10 percent less than a typical Blue Care Plan. It has two fee scales, one for those who meet specific guidelines for healthy living and another for those who do not.
"We wanted a product that would lower premiums as well as put a little accountability on employees," Dr. Douglas Woll, Blue Care Network senior vice president and chief medical officer, told The Detroit News for a story Monday. "Employees will be paying more as a consequence for doing things that are not healthy."
Blue Care Network expects to enroll 5,000 to 10,000 members in the plan in the first year, Woll told the Detroit Free Press.
Under the program, workers qualify for lower rates by scoring well on an assessment that measures alcohol use, blood pressure, blood sugar, cholesterol, smoking status and weight.
To buy the plan, employers must promise to keep a smoke-free work place.
www.medequote.net
www.medequote.com
The discounts will be available starting Oct. 1 from Blue Care Network of Michigan, affiliated with Blue Cross Blue Shield of Michigan.
The new coverage plan is called Healthy Blue Living and costs employers about 10 percent less than a typical Blue Care Plan. It has two fee scales, one for those who meet specific guidelines for healthy living and another for those who do not.
"We wanted a product that would lower premiums as well as put a little accountability on employees," Dr. Douglas Woll, Blue Care Network senior vice president and chief medical officer, told The Detroit News for a story Monday. "Employees will be paying more as a consequence for doing things that are not healthy."
Blue Care Network expects to enroll 5,000 to 10,000 members in the plan in the first year, Woll told the Detroit Free Press.
Under the program, workers qualify for lower rates by scoring well on an assessment that measures alcohol use, blood pressure, blood sugar, cholesterol, smoking status and weight.
To buy the plan, employers must promise to keep a smoke-free work place.
www.medequote.net
www.medequote.com
Monday, July 10, 2006
HSA's making a lot more sense in Michigan
HSA's are making a lot more sense in Michigan, one product that has caught the attention of residents os the UniCare HSA which has four different options. The reasons why record numbers are opting for an HSA is listed below.
Employees fortunate enough to have a health plan have had to swallow double-digit percentage price hikes in premiums for the past five years. But they could always take comfort in knowing that their health insurance was a bargain compared with what they might have to pay on their own. Indeed, the price of health insurance has long deterred budding entrepreneurs who might otherwise leave the corporate cocoon to strike out on their own. That calculation is changing, in part thanks to the new health savings accounts (HSA) that were authorized in the 2003 Medicare prescription drug legislation. The HSA plan comes in two parts. First, you must buy a health insurance policy with a high deductible. Then you open an HSA, a tax-sheltered account much like an individual retirement account. The account is funded with pretax contributions, up to $2,650 for individuals and $5,250 for families [table]. The account's earnings are not taxed -- nor are withdrawals when used to pay for qualified medical expenses.
Anyone can use HSAs, but experts believe they are particularly well-suited for the self-employed. "Entrepreneurs trade off the risk of paying out a couple of thousand dollars in tax-sheltered money in order to protect themselves from catastrophic costs," says Leon Rousso, a certified financial planner in Ventura, Calif. Brad Rosley, who has a wife and three children, also a financial planner in Glen Ellyn, Ill., made the switch. His previous health insurance policy to cover his family cost him $660 a month, or nearly $8,000 a year, with a deductible of $1,000.
Rosley replaced that plan with an HSA. He went for a policy with a $5,100 deductible and put that much into the tax-sheltered account for a family. His premium for the policy is $260 a month, or $3,120 annually. He uses the $400 a month he's saving over the previous policy to fund his HSA. Rosley figures he could well end up with a six-figure account, since any money left in the HSA can be rolled over from year to year. That money can pay for everything from long-term care insurance to a new hip during his golden years.
OUT-OF-POCKET COSTS
Rosley's experience appears typical. The average yearly premium on a family policy for an HSA is $3,550 for those aged 30 to 54, according to America's Health Insurance Plans, a Washington trade group. In contrast, private sector employees with a family plan through work pay between $2,100 and $2,400 a year, according to John Ascensio, senior vice-president at Segal Co., a New York benefits consulting firm.
But the cost gap is narrowing even as companies prepare to hike employees' out-of-pocket costs during the upcoming benefits season, a number of major insurers are cutting premiums for their HSA products. Indeed, sales of HSA policies more than doubled, to 1 million, in the six months ended Mar. 31. One reason for that is the tax break. The maximum contribution to an HSA for a family in the 35% tax bracket generates a tax savings of over $1,800 a year. Plus, any earnings in the account compound tax-free, assuming the money does go for medical expenses.
To be sure, HSA plans are controversial. Advocates argue that this type of consumer-controlled health care is the main solution to braking the nation's spiraling medical costs. Opponents fret that HSAs siphon off the healthiest and wealthiest consumers, leaving traditional plans with a sicker pool of people to insure. Public policy concerns aside, anyone contemplating these policies needs to address more mundane concerns. For one, you need to have the cash to fund the HSA. Also, these plans are inhospitable for anyone with preexisting conditions such as cancer or diabetes.
The HSA market is evolving. Health insurance is regulated by the states, and these plans aren't available everywhere. Benefits and prices vary, even within the same region. But the Internet is making it easier to evaluate benefits and compare prices. "The consumer can lower costs by shopping," says John Berkowitz, who heads up HSA products for www.medequote.com , which markets health insurance coverage at www.medequote.net.
HSAs are complex, and many consumers rebel against paying several thousand dollars out-of-pocket, even with tax-free money. "HSAs aren't a solution to all our health-care ills," says John Berkowitz, of Medequote. "But they're terrific for the entrepreneur." For this group in particular, HSAs may be the best way to obtain a safety net against catastrophic medical expenses at a reasonable cost. UniCare's HSA plans in Michigan, Illinois, and Texas are among the most inexpensive HSA plans on the market. We have found them to be quite popular."
www.medequote.net
www.medequote.com
Employees fortunate enough to have a health plan have had to swallow double-digit percentage price hikes in premiums for the past five years. But they could always take comfort in knowing that their health insurance was a bargain compared with what they might have to pay on their own. Indeed, the price of health insurance has long deterred budding entrepreneurs who might otherwise leave the corporate cocoon to strike out on their own. That calculation is changing, in part thanks to the new health savings accounts (HSA) that were authorized in the 2003 Medicare prescription drug legislation. The HSA plan comes in two parts. First, you must buy a health insurance policy with a high deductible. Then you open an HSA, a tax-sheltered account much like an individual retirement account. The account is funded with pretax contributions, up to $2,650 for individuals and $5,250 for families [table]. The account's earnings are not taxed -- nor are withdrawals when used to pay for qualified medical expenses.
Anyone can use HSAs, but experts believe they are particularly well-suited for the self-employed. "Entrepreneurs trade off the risk of paying out a couple of thousand dollars in tax-sheltered money in order to protect themselves from catastrophic costs," says Leon Rousso, a certified financial planner in Ventura, Calif. Brad Rosley, who has a wife and three children, also a financial planner in Glen Ellyn, Ill., made the switch. His previous health insurance policy to cover his family cost him $660 a month, or nearly $8,000 a year, with a deductible of $1,000.
Rosley replaced that plan with an HSA. He went for a policy with a $5,100 deductible and put that much into the tax-sheltered account for a family. His premium for the policy is $260 a month, or $3,120 annually. He uses the $400 a month he's saving over the previous policy to fund his HSA. Rosley figures he could well end up with a six-figure account, since any money left in the HSA can be rolled over from year to year. That money can pay for everything from long-term care insurance to a new hip during his golden years.
OUT-OF-POCKET COSTS
Rosley's experience appears typical. The average yearly premium on a family policy for an HSA is $3,550 for those aged 30 to 54, according to America's Health Insurance Plans, a Washington trade group. In contrast, private sector employees with a family plan through work pay between $2,100 and $2,400 a year, according to John Ascensio, senior vice-president at Segal Co., a New York benefits consulting firm.
But the cost gap is narrowing even as companies prepare to hike employees' out-of-pocket costs during the upcoming benefits season, a number of major insurers are cutting premiums for their HSA products. Indeed, sales of HSA policies more than doubled, to 1 million, in the six months ended Mar. 31. One reason for that is the tax break. The maximum contribution to an HSA for a family in the 35% tax bracket generates a tax savings of over $1,800 a year. Plus, any earnings in the account compound tax-free, assuming the money does go for medical expenses.
To be sure, HSA plans are controversial. Advocates argue that this type of consumer-controlled health care is the main solution to braking the nation's spiraling medical costs. Opponents fret that HSAs siphon off the healthiest and wealthiest consumers, leaving traditional plans with a sicker pool of people to insure. Public policy concerns aside, anyone contemplating these policies needs to address more mundane concerns. For one, you need to have the cash to fund the HSA. Also, these plans are inhospitable for anyone with preexisting conditions such as cancer or diabetes.
The HSA market is evolving. Health insurance is regulated by the states, and these plans aren't available everywhere. Benefits and prices vary, even within the same region. But the Internet is making it easier to evaluate benefits and compare prices. "The consumer can lower costs by shopping," says John Berkowitz, who heads up HSA products for www.medequote.com , which markets health insurance coverage at www.medequote.net.
HSAs are complex, and many consumers rebel against paying several thousand dollars out-of-pocket, even with tax-free money. "HSAs aren't a solution to all our health-care ills," says John Berkowitz, of Medequote. "But they're terrific for the entrepreneur." For this group in particular, HSAs may be the best way to obtain a safety net against catastrophic medical expenses at a reasonable cost. UniCare's HSA plans in Michigan, Illinois, and Texas are among the most inexpensive HSA plans on the market. We have found them to be quite popular."
www.medequote.net
www.medequote.com
Consumer Driven plan enrollment increasing in Michigan
Prompted by rising healthcare costs, enrollees in consumer-directed health plans nearly doubled in a year, increasing to between 5 million and 6 million in January, up from about 3 million in January 2005, the Government Accountability Office (GAO) said in a report.GAO, Congress's nonpartisan investigatory body, was told to find out how widespread CDHPs are, how they are funded and used, and the factors that could strengthen or weaken their appeal.In the report, GAO found that such plans -- the most common of which are health savings accounts and health reimbursement arrangements, both of which allow for tax-free withdrawals for medical expenses -- grew from about 1.6% of all U.S. private health insurance enrollees to 2.8% to 3.4% in only a year. That, the GAO said, means those plans, while still relatively few in number, are becoming a fast-growing segment of the private health insurance market. Citing health insurance industry officials and experts, John Berkowitz of Medequote said, "the primary factor responsible for the growth of CDHPs is the rising cost of healthcare coverage."Officials interviewed for the report said the growth in enrollment was prompted by a "desire to lower premiums" and to earn a tax advantage. Employers are more likely to offer CDHPs, the GAO found, if those plans show that they can rein in costs, and employees are more likely to enroll in them if employers offer "more comprehensive CDHP benefits" as well as more education about the plans.GAO also found the proportion of employers offering CDHPs to their workers quadrupled in about a year, rising from about 1% in 2004 to 4% in 2005. Large employers were more likely than small ones to offer such plans, with larger companies more likely to offer HRAs and smaller companies more likely to offer HSAs.Where employers offered multiple plans, employees were more likely to enroll in traditional health plans than in CDHPs, Berkowitz said.The GAO also found specific data about usage and contributions in the plans; data from three multistate insurance carriers, which Berkowitz didn't name, showed that the most common employer HRA contribution in 2004 ranged from about $500 to $750 for an individual and from $1,500 to $2,000 for two or more people. Employers are required to contributed to the accounts associated with HRA-based health plans. GAO also found that usage within the HRA plans was high: nearly 75% of single HRA-based enrollees and more than 95% of family enrollees used some or all of their HRA funds in 2004.Among HSA plans, about two-thirds of employers contributed to their workers' accounts, with an average 2005 employer contribution of $553 for individuals and $1,185 for families, GAO said.GAO also said "employers would be more likely to offer a CDHP if the cost of healthcare coverage continues rising significantly or if CDHPs demonstrate the ability to reduce these costs." According to the report, premiums in the group health insurance market since 2000 have increased nearly five times faster than the overall rate of inflation and the rate of increase in workers' wages.
Companies like UniCare offer the best value in Michigan for HSA's, the plans are easy to understand, and they are priced right for the market.
For more information concerning UniCare HSA Plans please call 800-391-7469.
www.medequote.net
Companies like UniCare offer the best value in Michigan for HSA's, the plans are easy to understand, and they are priced right for the market.
For more information concerning UniCare HSA Plans please call 800-391-7469.
www.medequote.net
Thursday, July 06, 2006
UniCare Health Plans in Michigan
The UniCare Fit program is one of the most comprehensive health plans out on the market and is designed especially for families. It provides all the benefits that people want most and you can even add optional dentla and life plans if you wish. Listed are below are just a few highlights of the UniCare Fit plans.
We have found UniCare to be one of th most benefit rich and price competive Michigan health insurance plans. If you have more questions or would like to examine a complete outline of coverage please, email us, or give us a call at 800-391-7469.
Deductible Choices - $500, $1000, $1500, $2000, $3000, $5000
Copayments - $30 co-pay, unlimited visits, no deductible applies
Preventive Care - Participating provider Immunizations for babies and children (thru age 6) Lab work and x-rays for routine Pap smears, annual mammograms and PSA screenings. $300 per member max per year.
Prescriptions - Generic $10 co-pay, no deductible applies, Formulary $30 co-pay, $250 brand name deductible applies, Formulary $50 co-pay, $250 brand name deductible applies.
Since the plan was released at the start of the year we have had a lot of happy customers who have enjoyed the low premiums and high benefit level. Not all health plans fit every single person, but we feel UniCare Fit will continue to be a very popular plan.
The concept of Health Savings Accounts combines an affordable qualified High Deductible Health Plan (HDHP) and a tax-favored health savings account (HSA). The combination results in savings through lower health care premiums and a reduction in taxable income. The HSA grows tax-deferred, and if you use your HSA funds for eligible medical expenses, you never have to pay taxes on those funds! UniCare offers four competively priced HSA qualified health plans in Michigan. The plans are available at www.medequote.net
We have found UniCare to be one of th most benefit rich and price competive Michigan health insurance plans. If you have more questions or would like to examine a complete outline of coverage please, email us, or give us a call at 800-391-7469.
Deductible Choices - $500, $1000, $1500, $2000, $3000, $5000
Copayments - $30 co-pay, unlimited visits, no deductible applies
Preventive Care - Participating provider Immunizations for babies and children (thru age 6) Lab work and x-rays for routine Pap smears, annual mammograms and PSA screenings. $300 per member max per year.
Prescriptions - Generic $10 co-pay, no deductible applies, Formulary $30 co-pay, $250 brand name deductible applies, Formulary $50 co-pay, $250 brand name deductible applies.
Since the plan was released at the start of the year we have had a lot of happy customers who have enjoyed the low premiums and high benefit level. Not all health plans fit every single person, but we feel UniCare Fit will continue to be a very popular plan.
The concept of Health Savings Accounts combines an affordable qualified High Deductible Health Plan (HDHP) and a tax-favored health savings account (HSA). The combination results in savings through lower health care premiums and a reduction in taxable income. The HSA grows tax-deferred, and if you use your HSA funds for eligible medical expenses, you never have to pay taxes on those funds! UniCare offers four competively priced HSA qualified health plans in Michigan. The plans are available at www.medequote.net
Tuesday, July 04, 2006
Michigan Chamber of Commerce Sides against health insurance mandate
The Michigan Chamber of Commerce today is urging State Senators to reject legislation (Senate Bills 2229-230 that would increase the cost of health insurance by mandating that employers provide the same level of coverage for mental health benefits as they do for other health benefits.
“For the Michigan Chamber, this is a debate over principle and price,” said Wendy Block, Director of Health Policy & Human Resources for the Michigan Chamber of Commerce. “We strongly oppose any expansion of government mandates on the benefits our members voluntarily provide to their workers and families. Block estimates that Senate Bills 229 and 230 will increase the cost of health insurance premiums by one to four percent, which will be added on top of near double digit medical inflationary increases.
“Based on an average premium of $4,024 for individual coverage and $10,880 for family coverage, a mental health mandate would increase the cost of providing health insurance anywhere from $40.24 to $160.96 for individual coverage and $108.80 to $435.20 for family coverage.” Block noted. “Adding another nine percent for medical inflation, these costs rise even further – to $402.40 to $523.12 for individual coverage and $1,088 to $1,414.40 for family coverage.
“Unfortunately, these costs will ultimately be passed along to employees in the form of higher co-pays and deductibles, even if they never use the services,” Block continued. “Worse yet, some employees may lose their coverage altogether as a result.”
“Many job providers recognize the value of offering their employees health insurance benefits and some employers voluntarily offer their employees mental health coverage,” said Rich Studley, Executive Vice President of the Michigan Chamber. “However, these decisions should be made in the workplace by employees and employers, instead of the political process.
“Not all job providers can afford to do so and need to maintain the flexibility to design their benefit programs to meet the needs of their particular workforce and budget,” Studley added.
“The Michigan Chamber strongly opposes these job-killing bills and will fight to prevent passage of any legislation that would increase the already high cost of employer-provided health insurance in our state,” Studley concluded.
The Michigan Chamber of Commerce is a statewide business organization which represents more than 6,900 employers, trade associations and local chambers of commerce. The Michigan Chamber was established in 1959 to be an advocate for Michigan’s job providers in the legislative, political and legal process.
www.medequote.net
“For the Michigan Chamber, this is a debate over principle and price,” said Wendy Block, Director of Health Policy & Human Resources for the Michigan Chamber of Commerce. “We strongly oppose any expansion of government mandates on the benefits our members voluntarily provide to their workers and families. Block estimates that Senate Bills 229 and 230 will increase the cost of health insurance premiums by one to four percent, which will be added on top of near double digit medical inflationary increases.
“Based on an average premium of $4,024 for individual coverage and $10,880 for family coverage, a mental health mandate would increase the cost of providing health insurance anywhere from $40.24 to $160.96 for individual coverage and $108.80 to $435.20 for family coverage.” Block noted. “Adding another nine percent for medical inflation, these costs rise even further – to $402.40 to $523.12 for individual coverage and $1,088 to $1,414.40 for family coverage.
“Unfortunately, these costs will ultimately be passed along to employees in the form of higher co-pays and deductibles, even if they never use the services,” Block continued. “Worse yet, some employees may lose their coverage altogether as a result.”
“Many job providers recognize the value of offering their employees health insurance benefits and some employers voluntarily offer their employees mental health coverage,” said Rich Studley, Executive Vice President of the Michigan Chamber. “However, these decisions should be made in the workplace by employees and employers, instead of the political process.
“Not all job providers can afford to do so and need to maintain the flexibility to design their benefit programs to meet the needs of their particular workforce and budget,” Studley added.
“The Michigan Chamber strongly opposes these job-killing bills and will fight to prevent passage of any legislation that would increase the already high cost of employer-provided health insurance in our state,” Studley concluded.
The Michigan Chamber of Commerce is a statewide business organization which represents more than 6,900 employers, trade associations and local chambers of commerce. The Michigan Chamber was established in 1959 to be an advocate for Michigan’s job providers in the legislative, political and legal process.
www.medequote.net
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